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Crocs, Inc. Reports 2009 Fourth Quarter and Fiscal 2009 Financial Results

February 25, 2010

Fourth Quarter Revenue Improves 8% Over Prior Year

Ends 2009 with Cash of $77 Million and No Bank Debt

Guides to Strong First Quarter Sales and Profitable 2010

NIWOT, COLORADO - February 25, 2010 - Crocs, Inc. (NASDAQ: CROX) today reported financial results for the fourth quarter and fiscal year ended December 31, 2009.

Fourth quarter 2009 revenues increased 7.9% to $136.0 million compared to revenues of $126.1 million in the year ago period. The Company reported a net loss of $11.4 million  in the fourth quarter of 2009 with diluted loss per share of ($0.13), compared to a fourth quarter 2008 net loss of $34.7 million, or ($0.42) per diluted share.  Fourth quarter 2009 net loss includes the effects of the following:

  • $0.6 million loss from foreign currency exchange rate fluctuations during the 2009 fourth quarter and
  • $3.6 million in impairment and restructuring charges and net charitable contributions.

On a non-GAAP basis, the Company’s fourth quarter 2009 net loss after taxes and excluding foreign currency exchange losses, charitable contributions and certain one-time items was $3.5 million, or ($0.04) per diluted share.

Year-over-year fourth quarter changes in the Company’s channel revenue streams were as follows:

  • Retail sales increased 25.9% to $43.8 million;
  • Internet sales increased 20.6% to $15.3 million; and
  • Wholesale sales decreased 2.1% to $77.0 million.

Changes in the Company’s regional segment revenue streams during the same quarterly periods were as follows:

  • Europe increased 51.2% to $16.5 million;
  • Asia increased 15.5% to $50.5 million; and
  • Americas decreased 3.4% to $68.9 million.

Revenues for the year ended December 31, 2009 decreased 10.5% to $645.8 million compared to revenues of $721.6 million in 2008. The Company reported a net loss of $42.1 million for fiscal 2009 with a diluted loss per share of ($0.49), compared to a net loss of $185.1 million, or ($2.24) per diluted share in fiscal 2008.

Balance Sheet

The Company’s cash and cash equivalents as of December 31, 2009 increased 49.5% to $77.3 million compared to $51.7 million at December 31, 2008.  The Company had no bank debt at December 31, 2009.

Inventory decreased 34.8% to $93.3 million at December 31, 2009 from $143.2 million at December 31, 2008 resulting in inventory turnover of 2.9 times.  Inventory turnover is calculated by annualizing the current period cost of goods sold and dividing by the average between the prior period and current period inventory balance.

The Company ended the fourth quarter of 2009 with accounts receivable of $50.5 million compared to $35.3 million at December 31, 2008 as a result of higher sales in the quarter. Days sales outstanding increased from 25.8 days for the three months ended December 31, 2008 to 34.1 days for the three months ended December 31, 2009.

Net capital expenditures in the fourth quarter and full year 2009 were $9.6 million and $29.8 million, respectively, compared to $14.4 million and $76.2 million in the fourth quarter and full year 2008.

“The past year was marked by significant operational changes that helped stabilize our business and reshaped the outlook for our Company,” commented John Duerden, President and Chief Executive Officer of Crocs. “I believe the brand remains strong and continues to attract a large and loyal consumer following.  In the near term, our focus remains on reinvigorating the top line, controlling costs and introducing fun and innovative footwear.  In 2010, we will re-engage the consumer through more targeted and effective advertising programs and through further development of our direct and indirect distribution channels. While there is still more work ahead of us, the progress we made during the past 12 months strengthening our balance sheet, right-sizing our cost structure and tightening our distribution have already yielded positive results, have strengthened the core of our business and provide a solid platform for future profitable growth.”


The Company expects to generate between $155 million and $160 million in revenue during its 2010 first quarter, with diluted earnings per share at approximately break even.  This guidance assumes an effective tax rate of 30%.

Conference Call Information

A conference call to discuss Crocs’ fourth quarter 2009 financial results is scheduled for today (February 25, 2010) at 5:00 PM Eastern Time.  A webcast of the call will take place simultaneously and can be accessed by clicking the ‘Investor Relations’ link under the Company section on or at To listen to the broadcast, your computer must have Windows Media Player installed.  If you do not have Windows Media Player, go to prior to the call, where you can download the software for free.



About Crocs, Inc.

A world leader in innovative casual footwear for men, women and children, Crocs, Inc. (NASDAQ: CROX), offers several distinct shoe collections with more than 120 styles to suit every lifestyle. As lighthearted as they are lightweight, CrocsTM footwear provides profound comfort and support for any occasion and every season.  All CrocsTM branded shoes feature CrosliteTM material, a proprietary, revolutionary technology that produces soft, non-marking, and odor-resistant shoes that conform to your feet.

CrocsTM products are sold in 125 countries. Every day, millions of CrocsTM shoe lovers around the world enjoy the exceptional form, function, versatility and feel-good qualities of these shoes while at work, school and play.

Visit for additional information.

Forward-looking statements

The matters regarding the future discussed in this news release include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  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: macroeconomic issues, including, but not limited to, the current global financial crisis; our ability to effectively manage our future growth or declines in revenue;

changing fashion trends; our ability to maintain and expand revenues and gross margin, net of the impact of sales of impaired inventories; our management and information systems infrastructure; our ability to repatriate cash held in foreign locations in a timely and cost-effective manner; our ability to maintain compliance with our debt covenants; our ability to maintain sufficient liquidity; our ability to develop and sell new products; our ability to obtain and protect intellectual property rights; our reliance on third-party manufacturing and logistics providers for the production and distribution of products; our ability to anticipate difficulties or disruptions to our manufacturing operations; our reliance on a limited source supply for certain raw materials; inherent risks associated with the manufacture, distribution and sale of our products overseas; our ability to meet the estimates or expectations of public market analysts and investors; seasonal variations in our business; our ability to accurately anticipate and respond to seasonal or quarterly fluctuations in demand for our products; our ability to maintain effective internal controls; our defense and the ultimate outcome of a pending class action lawsuit; our ability to attract, assimilate and retain adequate talent; our ability to maintain and improve business relationships with third parties selling our products; the effect of competition in our industry; our ability to successfully integrate and grow acquired businesses and brands; and the effect of potential adverse currency exchange rate fluctuations; 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.  We do not undertake any obligation to update publicly any forward-looking statements, including, without limitation, any estimate regarding revenues or earnings, whether as a result of the receipt of new information, future events, or otherwise.

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