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Crocs’ Income Explodes; U.S., World Sales Soar
The Rocky Mountain News, Aug 4, 2006
Crocs Inc. saw sales jump more than 230 percent in its second quarter as consumers here and abroad clamored for the brightly colored shoes.
The Niwot company reported net income of $15.7 million, or 39 cents a share, on sales of $85.6 million in the quarter ended June 30, compared with $3.3 million, or 10 cents a share, on sales of $25.8 million in the same period last year.
Consumers were buying more of the basic Beach and Cayman models, as well as seeking out new looks, including flip-flops, slides and medical styles, the company said.
“Our international business is growing much faster than we originally expected,” Chief Executive Officer Ron Snyder said in a conference call with analysts. “That said, we still believe we have only scratched the surface in terms of our potential.”
Crocs’ share price, which has ranged from about $20 to more than $37 since the company went public on Feb. 8, rose $5.60, to $34.60, in after-hours trading Thursday.
The company added 300 U.S. stores, for a total of 7,600 by the end of the quarter, Snyder said. International “doors” rose to 4,000, from 1,500 at the end of March.
About 30 percent of the quarterly revenue came from international sales, Snyder said. Crocs has raised its estimates of international sales for the third quarter from 10 percent of total to 25 percent to 30 percent.
The company expects to report sales of between $87 million and $90 million, and earnings per share from 38 cents to 40 cents.
During the call, Snyder addressed supply glitches. This year, some area retailers told the Rocky Mountain News they’d had problems getting enough of the shoes, and some stores had stopped selling them.
“With the demand we have experienced, there are bound to be instances where certain accounts have not received all the product they would like. We see this as a demand issue, not a delivery issue.”
Factories are churning out 2.6 million to 3 million pairs per month, and Crocs is improving capacity at the factories it owns, including one in Mexico that should be at full capacity this fall, Snyder said.
During the quarter, Crocs also moved to larger Niwot offices and added two new servers to handle Internet orders, the company said.
- Janet Forgrieve
forgrievej@RockyMountainNews.com or 303-892-5191.
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