UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (date of earliest event reported): August 9, 2017

 

CROCS, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

 

0-51754

 

20-2164234

(State or other jurisdiction

 

(Commission File Number)

 

(I.R.S. Employer

of incorporation)

 

 

 

Identification No.)

 

7477 East Dry Creek Parkway

 

 

Niwot, Colorado

 

80503

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: (303) 848-7000

 

Not Applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.45) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

 

Emerging growth company                  o

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

 

 

 



 

Item 2.02. Results of Operations and Financial Condition.

 

On August 9, 2017, Crocs, Inc. issued a press release reporting its results of operations for the three months ended June 30, 2017. A copy of the press release is furnished as Exhibit 99.1 to this report.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit
No.

 

Description

99.1

 

Crocs, Inc. press release dated August 9, 2017

 

2



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

CROCS, INC.

 

 

 

 

 

 

Date: August 9, 2017

By:

/s/ Carrie Teffner

 

 

Carrie Teffner

 

 

Executive Vice President and Chief Financial Officer

 

3


Exhibit 99.1

 

 

 

Investor Contacts:

Marisa Jacobs, Crocs Inc.

 

 

(303) 848-7322

 

 

mjacobs@crocs.com

 

 

and

 

 

Brendon Frey, ICR

 

 

(203) 682-8200

 

 

Brendon.Frey@icrinc.com

 

 

 

 

Media Contact:

Patrick Rich, Crocs, Inc.

 

 

(303) 848-7408

 

 

prich@crocs.com

 

Crocs, Inc. Reports Second Quarter 2017 Results

Income from Operations Increases 43% to $29.4 Million;

Revenues at High End of Guidance, Gross Margin Gains and SG&A Reductions Exceed Guidance

 


 

NIWOT, COLORADO — August 9, 2017 — Crocs, Inc. (NASDAQ: CROX) a world leader in innovative casual footwear for men, women and children, today announced its financial results for the second quarter of 2017. These results cover the three months ended June 30, 2017, and are compared to the three months ended June 30, 2016.

 

Andrew Rees, President and Chief Executive Officer, said, “During the second quarter, we continued to revitalize the Crocs brand and drive improvement in the quality of our revenues. A favorable response to our Spring/Summer 2017 collection, particularly as it relates to clogs and sandals, drove solid growth in these silhouettes. A focus on our core molded products and effective inventory management enabled us to deliver gross margins which exceeded guidance, while our intense focus on expense management kept SG&A below projected levels. We are optimistic about the early response to our Fall/Holiday 2017 collection, and anticipate that the positive sentiment seen to date will continue throughout the second half of the year, despite the challenging retail environment.”

 

Second Quarter 2017 Operating Results:

 

·                  Revenues, at the high end of our guidance, came in at $313.2 million. On a constant currency basis, revenues decreased 2.7%, compared to the second quarter of 2016. We continued to execute against plans to improve the quality of our revenues and strengthen our brand.

 

·                  Second quarter gross margin rose 180 basis points to 54.2% compared to last year’s second quarter. Improved product and better management of inventory enabled us to generate higher quality revenues. We also benefited from the continued shift toward more molded product.

 

·                  Selling, general and administrative expenses (“SG&A”) were $140.4 million compared to $149.0 million in the second quarter of 2016, a decrease of 5.8%. As a percent of revenues, SG&A improved 120 basis points.  Our second quarter 2017 SG&A results include $1.8 million of costs relating to our SG&A reduction initiative. The right sizing of our store fleet, operational efficiencies, and a disciplined approach to expense management, coupled with some timing and approximately $1.0 million in recovery of bad debt previously reserved for in China, contributed to this improvement.

 

1



 

·                  Net income attributable to common stockholders was $18.1 million, or $0.20 per diluted share. Excluding $1.8 million related to our SG&A reduction initiatives, the Company reported non-GAAP net income attributable to common stockholders(1) of $19.9 million. In the second quarter of 2016, our net income attributable to common stockholders was $11.7 million, or $0.13 per diluted share, and our non-GAAP adjusted net income attributable to common stockholders was $12.0 million.

 

·                  For the quarter ended June 30, 2017, we had 74.6 million weighted average diluted common shares outstanding.

 

Balance Sheet and Cash Flow Highlights:

 

·                  Cash and cash equivalents as of June 30, 2017 were $157.0 million, compared to $146.7 million as of June 30, 2016.

 

·                  Inventory was $155.7 million as of June 30, 2017, compared to $169.9 million as of June 30, 2016. This reflects our ongoing efforts to carefully manage inventory and improve the quality of goods on hand.

 

·                  Cash provided by operating activities was $39.4 million during the first six months of 2017, compared to $19.8 million during the first six months of 2016.

 

·                  Capital expenditures totaled $6.8 million during the second quarter of 2017, compared to $6.9 million during the second quarter of 2016.

 

·                  Cash used by financing activities included $10.0 million used to repurchase 1.4 million shares of our common stock.

 

Financial Outlook

 

Third Quarter 2017:

 

·                  The Company expects third quarter 2017 revenues to be between $230 and $240 million.

 

·                  The Company expects gross margin for the third quarter to be essentially flat to the third quarter of 2016.  Our gross margin in the third quarter of 2016 included a benefit of more than 200 basis points due to a favorable inventory adjustment.

 

·                  The Company expects SG&A to be down approximately $3 million to last year, including approximately $2 million of charges associated with our SG&A reduction initiative.

 

Full Year 2017:

 

·                  The Company continues to expect 2017 revenues to be down low single digits compared to 2016. This is reflective of the various business model changes taking place throughout the year, and an accelerated pace of store closings.

 

·                  The Company continues to expect gross margin for 2017 to be approximately 50%.

 

·                  The Company now expects SG&A for 2017 to be between $490 and $495 million. This is down from our previous guidance, and $10 to $15 million below the 2016 SG&A of $506.3 million. This lower range reflects the improvement realized in the second quarter, as well as the accelerated pace at which we are reducing company-operated stores. Included in the range is $7 to $10 million of charges associated with our SG&A reduction plan.

 


(1)         Refer to “Reconciliation of GAAP Measures to Non-GAAP Measures” below for a description of and reconciliation of GAAP to non-GAAP measures.

 

2



 

Conference Call Information:

 

A conference call to discuss second quarter 2017 results is scheduled for today, Wednesday, August 9, 2017, at 8:30 am EDT. The call participation number is (888) 771-4371. A recording of the conference call will be available two hours after the completion of the call at (888) 843-7419. International participants can dial (847) 585-4405 to take part in the conference call and can access a replay of the call at (630) 652-3042. All of the above calls will require the input of the conference identification number 45276571. The call will also be streamed on the Crocs website, www.crocs.com. An audio recording of the conference call will be available at www.crocs.com through August 9, 2018.

 

About Crocs, Inc.:

 

Crocs, Inc. (NASDAQ: CROX) is a world leader in innovative casual footwear for men, women and children. Crocs offers a broad portfolio of all-season products, while remaining true to its core molded footwear heritage. All Crocs™ shoes feature Croslite™ material, a proprietary, revolutionary technology that gives each pair of shoes the soft, comfortable, lightweight and non-marking qualities that Crocs fans know and love.

 

Visit www.crocs.com for additional information.

 

Forward Looking Statements:

 

This news release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding prospects, expectations and our revenues, gross margin and SG&A outlook. These statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to be materially different from any future results, performances, or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to, the following: current global financial conditions; the effect of competition in our industry; our ability to effectively manage our future growth or declines in revenues; changing consumer preferences; our ability to maintain and expand revenues and gross margin; our ability to accurately forecast consumer demand for our products; our ability to successfully implement our strategic plans; our ability to develop and sell new products; our ability to obtain and protect intellectual property rights; the effect of potential adverse currency exchange rate fluctuations and other international operating risks; and other factors described in our most recent Annual Report on Form 10-K under the heading “Risk Factors” and our subsequent filings with the Securities and Exchange Commission. Readers are encouraged to review that section and all other disclosures appearing in our filings with the Securities and Exchange Commission.

 

All information in this document speaks as of August 9, 2017. We do not undertake any obligation to update publicly any forward-looking statements, including, without limitation, any estimate regarding revenues, gross margin or SG&A, whether as a result of the receipt of new information, future events, or otherwise.

 

3



 

CROCS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(in thousands, except per share data)

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2017

 

2016

 

2017

 

2016

 

Revenues

 

$

313,221

 

$

323,828

 

$

581,128

 

$

602,968

 

Cost of sales

 

143,414

 

154,188

 

277,737

 

303,962

 

Gross profit

 

169,807

 

169,640

 

303,391

 

299,006

 

Selling, general and administrative expenses

 

140,361

 

149,035

 

258,363

 

264,158

 

Income from operations

 

29,446

 

20,605

 

45,028

 

34,848

 

Foreign currency gain (loss), net

 

162

 

(1,700

)

438

 

(2,947

)

Interest income

 

157

 

164

 

307

 

380

 

Interest expense

 

(188

)

(234

)

(372

)

(477

)

Other income (loss)

 

9

 

(189

)

133

 

(107

)

Income before income taxes

 

29,586

 

18,646

 

45,534

 

31,697

 

Income tax expense

 

7,627

 

3,109

 

12,564

 

6,014

 

Net income

 

21,959

 

15,537

 

32,970

 

25,683

 

Dividends on Series A convertible preferred stock

 

(3,000

)

(3,000

)

(6,000

)

(6,000

)

Dividend equivalents on Series A convertible preferred shares related to redemption value accretion and beneficial conversion feature

 

(873

)

(802

)

(1,729

)

(1,587

)

Net income attributable to common stockholders

 

$

18,086

 

$

11,735

 

$

25,241

 

$

18,096

 

Net income per common share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.21

 

$

0.13

 

$

0.29

 

$

0.21

 

Diluted

 

$

0.20

 

$

0.13

 

$

0.29

 

$

0.20

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic

 

73,953

 

73,389

 

73,882

 

73,238

 

Weighted average common shares outstanding - diluted

 

74,572

 

74,243

 

74,625

 

74,389

 

 

4



 

CROCS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands, except par value)

 

 

 

June 30,

2017

 

December 31,

2016

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

156,962

 

$

147,565

 

Accounts receivable, net of allowances of $50,700 and $48,138, respectively

 

135,893

 

78,297

 

Inventories

 

155,749

 

147,029

 

Income tax receivable

 

5,830

 

2,995

 

Other receivables

 

14,219

 

14,642

 

Restricted cash - current

 

2,461

 

2,534

 

Prepaid expenses and other assets

 

25,052

 

32,413

 

Total current assets

 

496,166

 

425,475

 

Property and equipment, net of accumulated depreciation and amortization of $93,929, and $88,603, respectively

 

41,018

 

44,090

 

Intangible assets, net

 

68,411

 

72,700

 

Goodwill

 

1,615

 

1,480

 

Deferred tax assets, net

 

7,079

 

6,825

 

Restricted cash

 

2,856

 

2,547

 

Other assets

 

13,449

 

13,273

 

Total assets

 

$

630,594

 

$

566,390

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable

 

$

82,980

 

$

61,927

 

Accrued expenses and other liabilities

 

84,900

 

78,282

 

Income taxes payable

 

14,978

 

6,593

 

Current portion of borrowings and capital lease obligations

 

1,722

 

2,338

 

Total current liabilities

 

184,580

 

149,140

 

Long-term income tax payable

 

4,865

 

4,464

 

Long-term capital lease obligations

 

40

 

40

 

Other liabilities

 

13,766

 

13,462

 

Total liabilities

 

203,251

 

167,106

 

Commitments and contingencies

 

 

 

 

 

Series A convertible preferred stock, 1.0 million authorized, 0.2 million shares outstanding, liquidation preference $203 million

 

180,629

 

178,901

 

Stockholders’ equity:

 

 

 

 

 

Preferred stock, par value $0.001 per share, 4.0 million shares authorized, none outstanding

 

 

 

Common stock, par value $0.001 per share, 94.7 million and 93.9 million issued, 73.0 million and 73.6 million shares outstanding, respectively

 

95

 

94

 

Treasury stock, at cost, 21.7 million and 20.3 million shares, respectively

 

(294,252

)

(284,237

)

Additional paid-in capital

 

368,036

 

364,397

 

Retained earnings

 

220,966

 

195,725

 

Accumulated other comprehensive loss

 

(48,131

)

(55,596

)

Total stockholders’ equity

 

246,714

 

220,383

 

Total liabilities and stockholders’ equity

 

$

630,594

 

$

566,390

 

 

5



 

CROCS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in thousands)

 

 

 

Six Months Ended June 30,

 

 

 

2017

 

2016

 

Cash flows from operating activities:

 

 

 

 

 

Net income

 

$

32,970

 

$

25,683

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

16,815

 

17,031

 

Unrealized gains on foreign exchange, net

 

(1,744

)

(4,884

)

Share-based compensation

 

3,945

 

5,898

 

Other non-cash items

 

(2,872

)

1,685

 

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable, net of allowances

 

(53,086

)

(47,129

)

Inventories

 

(4,743

)

2,148

 

Prepaid expenses and other assets

 

12,567

 

(5,107

)

Accounts payable, accrued expenses and other liabilities

 

35,528

 

24,493

 

Cash provided by operating activities

 

39,380

 

19,818

 

Cash flows from investing activities:

 

 

 

 

 

Cash paid for purchases of property and equipment

 

(4,958

)

(10,280

)

Proceeds from disposal of property and equipment

 

1,506

 

2,428

 

Cash paid for intangible assets

 

(7,273

)

(2,561

)

Change in restricted cash

 

30

 

(845

)

Cash used in investing activities

 

(10,695

)

(11,258

)

Cash flows from financing activities:

 

 

 

 

 

Proceeds from bank borrowings

 

5,500

 

29,582

 

Repayments of bank borrowings and capital lease obligations

 

(7,565

)

(30,662

)

Dividends—Series A preferred stock

 

(6,000

)

(6,000

)

Repurchases of common stock

 

(10,000

)

 

Other

 

(240

)

(363

)

Cash used in financing activities

 

(18,305

)

(7,443

)

Effect of exchange rate changes on cash

 

(983

)

2,204

 

Net change in cash and cash equivalents

 

9,397

 

3,321

 

Cash and cash equivalents—beginning of period

 

147,565

 

143,341

 

Cash and cash equivalents—end of period

 

$

156,962

 

$

146,662

 

 

6



 

CROCS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

(UNAUDITED)

 

In addition to financial measures presented on the basis of accounting principles generally accepted in the United States of America (“U.S. GAAP”), we present “Non-GAAP selling, general, and administrative expenses” and “Non-GAAP net income attributable to common stockholders”, which are non-GAAP financial measures.  Non-GAAP results exclude the impact of items that management believes affect the comparability or underlying business trends in our condensed consolidated financial statements in the periods presented.

 

We also present certain information related to our current period results of operations through “constant currency”, which is a non-GAAP financial measure and should be viewed as a supplement to our results of operations and presentation of reportable segments under U.S. GAAP. Constant currency represents current period results that have been retranslated using exchange rates used in the prior year comparative period to enhance the visibility of the underlying business trends excluding the impact of foreign currency exchange rate fluctuations.

 

Management uses non-GAAP results to assist in comparing business trends from period to period on a consistent basis in communications with the board of directors, stockholders, analysts, and investors concerning our financial performance. We believe that these non-GAAP measures are useful to investors and other users of our condensed consolidated financial statements as an additional tool for evaluating operating performance. We believe they also provide a useful baseline for analyzing trends in our operations. Investors should not consider these non-GAAP measures in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP.

 

7



 

CROCS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

(UNAUDITED)

 

 

 

Three Months Ended June 30,

 

 

 

2017

 

2016

 

 

 

(in thousands)

 

Selling, general and administrative expenses reconciliation:

 

 

 

 

 

U.S. GAAP SG&A expenses

 

$

140,361

 

$

149,035

 

Reorganization charges (1)

 

(767

)

(274

)

Strategic consulting services (2)

 

(280

)

 

Legal settlement (3)

 

(220

)

 

Financing fees (4)

 

(557

)

 

Total adjustments

 

(1,824

)

(274

)

Non-GAAP SG&A expenses

 

$

138,537

 

$

148,761

 

 

 

 

Three Months Ended June 30,

 

 

 

2017

 

2016

 

 

 

(in thousands)

 

Net income attributable to common stockholders reconciliation:

 

 

 

 

 

GAAP net income attributable to common stockholders

 

$

18,086

 

$

11,735

 

Reorganization charges (1)

 

767

 

274

 

Strategic consulting services (2)

 

280

 

 

Legal settlement (3)

 

220

 

 

Financing fees (4)

 

557

 

 

 

Total adjustments

 

1,824

 

274

 

Non-GAAP net income attributable to common stockholders

 

$

19,910

 

$

12,009

 

 


(1) Represents severance and other expenses related to reorganization activities.

 

(2) Represents operating expenses incurred in 2017 related to strategic consulting.

 

(3) Represents legal settlement during the quarter.

 

(4) Represents write-off of deferred financing fees.

 

Selling, general and administrative expenses reconciliation:

 

 

 

GAAP SG&A

 

$495 to $500

 

Charges associated with reduction initiatives

 

$7 to $10

 

Non-GAAP SG&A

 

Approximately $490

 

 

8



 

CROCS, INC. AND SUBSIDIARIES

REVENUES BY CHANNEL

(UNAUDITED)

 

 

 

Three Months Ended June 30,

 

Change

 

Constant Currency Change (1)

 

 

 

2017

 

2016

 

$

 

%

 

$

 

%

 

 

 

(in thousands)

 

Wholesale:

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

57,307

 

$

54,620

 

$

2,687

 

4.9

%

$

2,516

 

4.6

%

Asia Pacific

 

65,146

 

74,640

 

(9,494

)

(12.7

)%

(8,541

)

(11.4

)%

Europe

 

30,947

 

36,192

 

(5,245

)

(14.5

)%

(5,234

)

(14.5

)%

Other businesses

 

103

 

225

 

(122

)

(54.2

)%

(121

)

(53.8

)%

Total wholesale

 

153,503

 

165,677

 

(12,174

)

(7.3

)%

(11,380

)

(6.9

)%

Retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

55,576

 

57,786

 

(2,210

)

(3.8

)%

(2,108

)

(3.6

)%

Asia Pacific

 

39,429

 

41,319

 

(1,890

)

(4.6

)%

(1,566

)

(3.8

)%

Europe

 

13,071

 

13,950

 

(879

)

(6.3

)%

(1,138

)

(8.2

)%

Total retail

 

108,076

 

113,055

 

(4,979

)

(4.4

)%

(4,812

)

(4.3

)%

E-commerce:

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

23,271

 

22,691

 

580

 

2.6

%

659

 

2.9

%

Asia Pacific

 

20,069

 

14,887

 

5,182

 

34.8

%

6,008

 

40.4

%

Europe

 

8,302

 

7,518

 

784

 

10.4

%

902

 

12.0

%

Total e-commerce

 

51,642

 

45,096

 

6,546

 

14.5

%

7,569

 

16.8

%

Total revenues

 

$

313,221

 

$

323,828

 

$

(10,607

)

(3.3

)%

$

(8,623

)

(2.7

)%

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

136,154

 

$

135,097

 

$

1,057

 

0.8

%

$

1,067

 

0.8

%

Asia Pacific

 

124,644

 

130,846

 

(6,202

)

(4.7

)%

(4,099

)

(3.1

)%

Europe

 

52,320

 

57,660

 

(5,340

)

(9.3

)%

(5,470

)

(9.5

)%

Total segment revenues     

 

313,118

 

323,603

 

(10,485

)

(3.2

)%

(8,502

)

(2.6

)%

Other businesses

 

103

 

225

 

(122

)

(54.2

)%

(121

)

(53.8

)%

Total revenues

 

$

313,221

 

$

323,828

 

$

(10,607

)

(3.3

)%

$

(8,623

)

(2.7

)%

 


(1)         Reflects year over year change as if the current period results were in “constant currency”, which is a non-GAAP financial measure. See “Reconciliation of GAAP Measures to Non-GAAP Measures” above for more information.

 

9



 

CROCS, INC. AND SUBSIDIARIES
REVENUES BY CHANNEL
(UNAUDITED)

 

 

 

Six Months Ended June 30,

 

Change

 

Constant Currency Change (1)

 

 

 

2017

 

2016

 

$

 

%

 

$

 

%

 

 

 

(in thousands)

 

Wholesale:

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

128,333

 

$

128,775

 

$

(442

)

(0.3

)%

$

(1,762

)

(1.4

)%

Asia Pacific

 

136,081

 

151,793

 

(15,712

)

(10.4

)%

(14,760

)

(9.7

)%

Europe

 

71,530

 

75,254

 

(3,724

)

(4.9

)%

(3,096

)

(4.1

)%

Other businesses

 

291

 

397

 

(106

)

(26.7

)%

(100

)

(25.2

)%

Total Wholesale

 

336,235

 

356,219

 

(19,984

)

(5.6

)%

(19,718

)

(5.5

)%

Retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

88,405

 

93,535

 

(5,130

)

(5.5

)%

(5,066

)

(5.4

)%

Asia Pacific

 

60,961

 

63,838

 

(2,877

)

(4.5

)%

(2,730

)

(4.3

)%

Europe

 

20,490

 

21,505

 

(1,015

)

(4.7

)%

(1,549

)

(7.2

)%

Total Retail

 

169,856

 

178,878

 

(9,022

)

(5.0

)%

(9,345

)

(5.2

)%

E-commerce:

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

37,139

 

36,917

 

222

 

0.6

%

267

 

0.7

%

Asia Pacific

 

25,946

 

19,716

 

6,230

 

31.6

%

7,111

 

36.1

%

Europe

 

11,952

 

11,238

 

714

 

6.4

%

869

 

7.7

%

Total e-commerce

 

75,037

 

67,871

 

7,166

 

10.6

%

8,247

 

12.2

%

Total revenues

 

$

581,128

 

$

602,968

 

$

(21,840

)

(3.6

)%

$

(20,816

)

(3.5

)%

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

253,877

 

$

259,227

 

$

(5,350

)

(2.1

)%

$

(6,561

)

(2.5

)%

Asia Pacific

 

222,989

 

235,347

 

(12,358

)

(5.3

)%

(10,379

)

(4.4

)%

Europe

 

103,971

 

107,997

 

(4,026

)

(3.7

)%

(3,776

)

(3.5

)%

Total segment revenues

 

580,837

 

602,571

 

(21,734

)

(3.6

)%

(20,716

)

(3.4

)%

Other businesses

 

291

 

397

 

(106

)

(26.7

)%

(100

)

(25.2

)%

Total Revenues

 

$

581,128

 

$

602,968

 

$

(21,840

)

(3.6

)%

$

(20,816

)

(3.5

)%

 


(1)         Reflects year over year change as if the current period results were in “constant currency”, which is a non-GAAP financial measure. See “Reconciliation of GAAP Measures to Non-GAAP Measures” above for more information.

 

10



 

CROCS, INC. AND SUBSIDIARIES
RETAIL STORE COUNTS
(UNAUDITED)

 

 

 

December 31,
2016

 

Opened

 

Closed

 

June 30, 2017

 

Company-operated retail locations:

 

 

 

 

 

 

 

 

 

Type:

 

 

 

 

 

 

 

 

 

Kiosk/store-in-store

 

98

 

 

14

 

84

 

Retail stores

 

228

 

4

 

41

 

191

 

Outlet stores

 

232

 

10

 

14

 

228

 

Total

 

558

 

14

 

69

 

503

 

Operating segment:

 

 

 

 

 

 

 

 

 

Americas

 

190

 

1

 

7

 

184

 

Asia Pacific

 

270

 

12

 

54

 

228

 

Europe

 

98

 

1

 

8

 

91

 

Total

 

558

 

14

 

69

 

503

 

 

Comparable retail sales and direct to consumer sales by operating segment are as follows:

 

 

 

Constant Currency (1)

 

 

 

Three Months Ended June 30,

 

 

 

2017

 

2016

 

Comparable store sales (retail only) (2)

 

 

 

 

 

Americas

 

0.4

%

(2.5

)%

Asia Pacific

 

(0.9

)%

(6.8

)%

Europe

 

0.7

%

1.8

%

Global

 

0.0

%

(3.4

)%

 

 

 

Constant Currency (1)

 

 

 

Three Months Ended

 

 

 

June 30, 2017

 

June 30, 2016

 

 

 

 

 

 

 

Direct to consumer comparable store sales (includes retail and e-commerce) (2)

 

 

 

 

 

Americas

 

1.1

%

2.4

%

Asia Pacific

 

13.3

%

4.3

%

Europe

 

5.1

%

1.6

%

Global

 

5.7

%

2.9

%

 


(1)         Reflects period over period change as if the current period results were in “constant currency”, which is a non-GAAP financial measure. See “Reconciliation of GAAP to Non-GAAP Measures” above for more information.

 

(2)         Comparable store status is determined on a monthly basis. Comparable store sales include the revenues of stores that have been in operation for more than twelve months. Stores in which selling square footage has changed more than 15% as a result of a remodel, expansion, or reduction are excluded until the thirteenth month in which they have comparable prior year sales. Temporarily closed stores are excluded from the comparable store sales calculation during the month of closure. Location closures in excess of three months are excluded until the thirteenth month post re-opening. E-commerce revenues are based on same site sales period over period.

 

11