Revenues and Gross Margin Exceeded Guidance
Income from
Operations Grew 418% and Diluted Earnings Per Share Rose to $0.07
Raises
Full Year Guidance
___________________________________________________________________________
NIWOT, Colo.--(BUSINESS WIRE)--Nov. 8, 2018--
Crocs, Inc. (NASDAQ: CROX) a world leader in innovative casual footwear
for men, women, and children, today announced its third quarter 2018
financial results.
Andrew Rees, President and Chief Executive Officer, said, “By executing
against our strategic priorities, we drove strong quarterly performance
with revenues up 7.3%, gross margin increasing 250 basis points to 53.3%
and income from operations increasing 418% to $13.9 million. Our diluted
EPS was $0.07, improving significantly compared to last year’s third
quarter $0.03 loss. We achieved these strong results by continuing to
grow our brand strength and demand for our clogs and sandals. We
anticipate a strong finish to the year and have increased our 2018
guidance accordingly, and we are excited about our growth prospects for
2019.”
Third Quarter 2018 Operating Results:
-
Revenues were $261.1 million, a 7.3% increase over the third quarter
of 2017, or 9.3% on a constant currency basis. This growth was
achieved despite the loss of approximately $15 million due to
operating fewer stores and business model changes. E-commerce grew
23.2%, wholesale grew 9.3%, and retail comparable store sales
increased 15.0%.
-
Gross margin was 53.3%, improving 250 basis points over last year’s
third quarter.
-
Selling, general and administrative expenses (“SG&A”) were $125.2
million compared to $120.8 million in the third quarter of 2017. This
was higher than guidance due to incentive compensation and other
variable costs associated with higher revenues. As a percent of
revenues, SG&A improved 170 basis points to 47.9%. Third quarter 2018
results included $6.3 million of non-recurring charges compared to
$3.6 million in last year’s third quarter. Those charges consisted of
$5.0 million incurred in connection with the closure of the Company’s
manufacturing facilities, approximately $3.7 million of which were
non-cash, and $1.3 million associated with the Company’s SG&A
reduction plan.
-
Income from operations increased to $13.9 million from $2.7 million in
last year’s third quarter. Net income attributable to common
stockholders was $6.5 million, or $0.07 per diluted share, compared to
a loss of $2.3 million, or a $0.03 loss per diluted share, in last
year’s third quarter. We had 72.8 million and 71.9 million weighted
average diluted common shares outstanding during the three months
ended September 30, 2018 and 2017, respectively.
Balance Sheet and Cash Flow Highlights:
-
Cash and cash equivalents as of September 30, 2018 increased 13.9% to
$203.0 million compared to $178.2 million as of September 30, 2017 in
response to higher sales and gross margins in combination with a
disciplined approach to expenses. At September 30, 2018, there were no
borrowings outstanding on our credit facility, and in November 2018,
we increased the size of the facility to $150 million from $100
million.
-
Inventory declined 16.1% to $117.7 million as of September 30, 2018
compared to $140.3 million as of September 30, 2017, reflecting the
Company’s continued focus on inventory management.
-
Cash provided by operating activities increased 6.8% to $85.9 million
during the first nine months of 2018 compared to $80.4 million during
the first nine months of 2017.
-
Capital expenditures during the first nine months of 2018 were $5.2
million compared to $14.3 million during the same period in 2017, as
the Company incurred lower technology-related expenditures.
Share Repurchase Activity:
During the third quarter of 2018, the Company repurchased 604,000 shares
of its common stock for $11.1 million, at an average price of $18.39 per
share. As of September 30, 2018, approximately $182 million of the
Company’s current $500 million share repurchase authorization remained
available for future share repurchases.
Financial Outlook:
Fourth Quarter 2018:
With respect to the fourth quarter of 2018, the Company expects:
-
Revenues of $195 to $205 million compared to $199.1 million in the
fourth quarter of 2017, including a negative currency impact estimated
at $5 million.
-
Gross margin to be approximately 80 to 100 basis points above last
year’s 45.4% rate.
-
SG&A to be approximately $10 million below last year’s fourth quarter
SG&A of $120.7 million. This includes non-recurring charges of
approximately $2 million compared to $9.4 million of non-recurring
charges in the fourth quarter of 2017.
Full Year 2018:
With respect to 2018, the Company now expects:
-
Revenues to be 4 to 5% higher than 2017 revenues of $1,023.5 million,
up from prior guidance of a low single digit increase based on the
strength of our results.
-
Gross margin to increase approximately 100 basis points over 2017
gross margin of 50.5%, up from our prior guidance of a 70 to 100 basis
point increase.
-
SG&A to be approximately $495 million compared to last year’s $499.9
million and prior guidance calling for SG&A to be slightly higher than
$485 million. This change reflects increased incentive compensation
and other variable costs associated with higher revenues.
Non-recurring charges are expected to be $19 million. Approximately
$13 million of that amount relates to the closure of our manufacturing
facilities, approximately $6 million of which will be non-cash.
Non-recurring charges in 2017 were $17 million.
-
Income from operations to be slightly under $60 million compared to
$17.3 million in 2017 and our prior guidance of $50 million.
-
Depreciation and amortization to be approximately $30 million compared
to $33.1 million in 2017.
-
Income tax expense of approximately $17 million compared to $7.9
million in 2017.
2019 Preview:
With respect to 2019 revenues, the Company expects a mid-single digit
increase over 2018 revenues. We anticipate that e-commerce and wholesale
growth will more than offset lower retail revenues associated with our
reduced store count, which we expect to reduce revenues by approximately
$25 million. Adding back that $25 million reduction, we would expect
2019 revenues to be up mid to high single digits over our anticipated
2018 revenues.
Conference Call Information:
A conference call to discuss third quarter 2018 results is scheduled for
today, Thursday, November 8, 2018 at 8:30 a.m. EST. The call
participation number is (888) 771-4371. A replay 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 these calls will require the use of the
conference identification number 47676603. The call will also be
streamed live on the Crocs website, www.crocs.com,
and that audio recording will be available at www.crocs.com
through November 8, 2019.
About Crocs, Inc.:
Crocs, Inc. (Nasdaq: CROX) is a world leader in innovative casual
footwear for women, men, and children, combining comfort and style with
a value that consumers know and love. Every pair of shoes within Crocs’
collection contains Croslite™ material, a proprietary, molded footwear
technology, delivering extraordinary comfort with each step.
In 2018, Crocs reinforces its mission of “everyone comfortable in their
own shoes” with the second year of its global Come As You Are™ campaign.
To learn more about Crocs or Come As You Are, please visit www.crocs.com or
follow @Crocs on Facebook, Instagram and Twitter.
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 revenue, gross margin, SG&A, income from
operations, depreciation and amortization, and tax expense 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 November 8, 2018. We do
not undertake any obligation to update publicly any forward-looking
statements, including, without limitation, any estimates provided in the
“Financial Outlook” section above, whether as a result of the receipt of
new information, future events, or otherwise.
Category:Investors
|
|
|
|
|
|
|
|
CROCS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Revenues
|
|
|
$
|
261,064
|
|
|
|
$
|
243,273
|
|
|
|
$
|
872,216
|
|
|
|
$
|
824,401
|
|
|
Cost of sales
|
|
|
122,005
|
|
|
|
119,810
|
|
|
|
411,884
|
|
|
|
397,547
|
|
|
Gross profit
|
|
|
139,059
|
|
|
|
123,463
|
|
|
|
460,332
|
|
|
|
426,854
|
|
|
Selling, general and administrative expenses
|
|
|
125,164
|
|
|
|
120,778
|
|
|
|
383,451
|
|
|
|
379,141
|
|
|
Income from operations
|
|
|
13,895
|
|
|
|
2,685
|
|
|
|
76,881
|
|
|
|
47,713
|
|
|
Foreign currency gains (losses), net
|
|
|
233
|
|
|
|
(257
|
)
|
|
|
1,587
|
|
|
|
181
|
|
|
Interest income
|
|
|
422
|
|
|
|
269
|
|
|
|
847
|
|
|
|
576
|
|
|
Interest expense
|
|
|
(126
|
)
|
|
|
(167
|
)
|
|
|
(371
|
)
|
|
|
(539
|
)
|
|
Other income, net
|
|
|
160
|
|
|
|
54
|
|
|
|
229
|
|
|
|
187
|
|
|
Income before income taxes
|
|
|
14,584
|
|
|
|
2,584
|
|
|
|
79,173
|
|
|
|
48,118
|
|
|
Income tax expense
|
|
|
4,092
|
|
|
|
955
|
|
|
|
17,850
|
|
|
|
13,519
|
|
|
Net income
|
|
|
10,492
|
|
|
|
1,629
|
|
|
|
61,323
|
|
|
|
34,599
|
|
|
Dividends on Series A convertible preferred stock
|
|
|
(3,000
|
)
|
|
|
(3,000
|
)
|
|
|
(9,000
|
)
|
|
|
(9,000
|
)
|
|
Dividend equivalents on Series A convertible preferred stock related
to redemption value accretion and beneficial conversion feature
|
|
|
(972
|
)
|
|
|
(892
|
)
|
|
|
(2,854
|
)
|
|
|
(2,621
|
)
|
|
Net income (loss) attributable to common stockholders
|
|
|
$
|
6,520
|
|
|
|
$
|
(2,263
|
)
|
|
|
$
|
49,469
|
|
|
|
$
|
22,978
|
|
|
Net income (loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.08
|
|
|
|
$
|
(0.03
|
)
|
|
|
$
|
0.60
|
|
|
|
$
|
0.26
|
|
|
Diluted
|
|
|
$
|
0.07
|
|
|
|
$
|
(0.03
|
)
|
|
|
$
|
0.58
|
|
|
|
$
|
0.26
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
67,821
|
|
|
|
71,895
|
|
|
|
68,223
|
|
|
|
73,212
|
|
|
Diluted
|
|
|
72,774
|
|
|
|
71,895
|
|
|
|
71,104
|
|
|
|
74,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE
(UNAUDITED)
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
|
(in thousands, except per share data) |
|
Numerator:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to common stockholders
|
|
|
$
|
6,520
|
|
|
|
$
|
(2,263
|
)
|
|
|
$
|
49,469
|
|
|
|
$
|
22,978
|
|
|
Less: Net income allocable to Series A Preferred stockholders (1) |
|
|
(1,114
|
)
|
|
|
—
|
|
|
|
(8,319
|
)
|
|
|
(3,642
|
)
|
|
Remaining net income (loss) available to common stockholders - basic
and diluted
|
|
|
$
|
5,406
|
|
|
|
$
|
(2,263
|
)
|
|
|
$
|
41,150
|
|
|
|
$
|
19,336
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic
|
|
|
67,821
|
|
|
|
71,895
|
|
|
|
68,223
|
|
|
|
73,212
|
|
|
Plus: dilutive effect of stock options and unvested restricted stock
units
|
|
|
4,953
|
|
|
|
—
|
|
|
|
2,881
|
|
|
|
948
|
|
|
Weighted average common shares outstanding - diluted
|
|
|
72,774
|
|
|
|
71,895
|
|
|
|
71,104
|
|
|
|
74,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.08
|
|
|
|
$
|
(0.03
|
)
|
|
|
$
|
0.60
|
|
|
|
$
|
0.26
|
|
|
Diluted
|
|
|
$
|
0.07
|
|
|
|
$
|
(0.03
|
)
|
|
|
$
|
0.58
|
|
|
|
$
|
0.26
|
|
| (1) |
|
Represents the amount which would have been paid to preferred
stockholders in the event the Company had declared a dividend on its
common stock.
|
|
|
|
|
|
|
|
|
|
|
|
|
CROCS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands, except share and par value amounts)
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2018 |
|
|
|
December 31,
2017 |
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
203,046
|
|
|
|
|
$
|
172,128
|
|
|
Accounts receivable, net of allowances of $20,508 and $31,389,
respectively
|
|
|
110,478
|
|
|
|
|
83,518
|
|
|
Inventories
|
|
|
117,684
|
|
|
|
|
130,347
|
|
|
Income taxes receivable
|
|
|
11,872
|
|
|
|
|
3,652
|
|
|
Other receivables
|
|
|
9,387
|
|
|
|
|
10,664
|
|
|
Restricted cash - current
|
|
|
1,908
|
|
|
|
|
2,144
|
|
|
Prepaid expenses and other assets
|
|
|
25,856
|
|
|
|
|
22,596
|
|
|
Total current assets
|
|
|
480,231
|
|
|
|
|
425,049
|
|
|
Property and equipment, net of accumulated depreciation and
amortization of $81,043 and $91,806, respectively
|
|
|
24,216
|
|
|
|
|
35,032
|
|
|
Intangible assets, net
|
|
|
48,196
|
|
|
|
|
56,427
|
|
|
Goodwill
|
|
|
1,634
|
|
|
|
|
1,688
|
|
|
Deferred tax assets, net
|
|
|
12,567
|
|
|
|
|
10,174
|
|
|
Restricted cash
|
|
|
2,244
|
|
|
|
|
2,783
|
|
|
Other assets
|
|
|
8,858
|
|
|
|
|
12,542
|
|
|
Total assets
|
|
|
$
|
577,946
|
|
|
|
|
$
|
543,695
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
57,125
|
|
|
|
|
$
|
66,381
|
|
|
Accrued expenses and other liabilities
|
|
|
99,793
|
|
|
|
|
84,446
|
|
|
Income taxes payable
|
|
|
24,683
|
|
|
|
|
5,515
|
|
|
Current portion of borrowings and capital lease obligations
|
|
|
11
|
|
|
|
|
676
|
|
|
Total current liabilities
|
|
|
181,612
|
|
|
|
|
157,018
|
|
|
Long-term income taxes payable
|
|
|
4,334
|
|
|
|
|
6,081
|
|
|
Other liabilities
|
|
|
9,679
|
|
|
|
|
12,298
|
|
|
Total liabilities
|
|
|
195,625
|
|
|
|
|
175,397
|
|
|
Commitments and contingencies:
|
|
|
|
|
|
|
|
|
Series A convertible preferred stock, par value $0.001 per share,
1.0 million shares authorized, 0.2 million outstanding, liquidation
preference $203 million
|
|
|
185,288
|
|
|
|
|
182,433
|
|
|
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, 250 million shares
authorized, 96.0 million and 94.8 million issued, 67.6 million and
68.8 million outstanding, respectively
|
|
|
96
|
|
|
|
|
95
|
|
|
Treasury stock, at cost, 28.4 million and 26.0 million shares,
respectively
|
|
|
(371,107
|
)
|
|
|
|
(334,312
|
)
|
|
Additional paid-in capital
|
|
|
383,090
|
|
|
|
|
373,045
|
|
|
Retained earnings
|
|
|
239,900
|
|
|
|
|
190,431
|
|
|
Accumulated other comprehensive loss
|
|
|
(54,946
|
)
|
|
|
|
(43,394
|
)
|
|
Total stockholders’ equity
|
|
|
197,033
|
|
|
|
|
185,865
|
|
|
Total liabilities and stockholders’ equity
|
|
|
$
|
577,946
|
|
|
|
|
$
|
543,695
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CROCS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
|
|
2018 |
|
|
2017 |
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
61,323
|
|
|
|
$
|
34,599
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
21,535
|
|
|
|
24,701
|
|
|
Unrealized foreign currency (gain) loss, net
|
|
|
(2,028
|
)
|
|
|
1,017
|
|
|
Share-based compensation
|
|
|
9,320
|
|
|
|
6,851
|
|
|
Other non-cash items
|
|
|
8,104
|
|
|
|
(1,208
|
)
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable, net of allowances
|
|
|
(37,394
|
)
|
|
|
(9,068
|
)
|
|
Inventories
|
|
|
4,468
|
|
|
|
12,435
|
|
|
Prepaid expenses and other assets
|
|
|
5,271
|
|
|
|
12,997
|
|
|
Accounts payable, accrued expenses and other liabilities
|
|
|
15,271
|
|
|
|
(1,909
|
)
|
|
Cash provided by operating activities
|
|
|
85,870
|
|
|
|
80,415
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Purchases of property, equipment, and software
|
|
|
(5,224
|
)
|
|
|
(14,263
|
)
|
|
Proceeds from disposal of property and equipment
|
|
|
1,325
|
|
|
|
1,562
|
|
|
Cash used in investing activities
|
|
|
(3,899
|
)
|
|
|
(12,701
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Proceeds from bank borrowings
|
|
|
—
|
|
|
|
5,500
|
|
|
Repayments of bank borrowings and capital lease obligations
|
|
|
(680
|
)
|
|
|
(8,222
|
)
|
|
Dividends—Series A convertible preferred stock
|
|
|
(9,000
|
)
|
|
|
(9,000
|
)
|
|
Repurchases of common stock
|
|
|
(37,046
|
)
|
|
|
(25,645
|
)
|
|
Other
|
|
|
31
|
|
|
|
(233
|
)
|
|
Cash used in financing activities
|
|
|
(46,695
|
)
|
|
|
(37,600
|
)
|
|
Effect of exchange rate changes on cash, cash equivalents, and
restricted cash
|
|
|
(5,133
|
)
|
|
|
499
|
|
|
Net change in cash, cash equivalents, and restricted cash
|
|
|
30,143
|
|
|
|
30,613
|
|
|
Cash, cash equivalents, and restricted cash—beginning of period
|
|
|
177,055
|
|
|
|
152,646
|
|
|
Cash, cash equivalents, and restricted cash—end of period
|
|
|
$
|
207,198
|
|
|
|
$
|
183,259
|
|
|
|
|
|
|
|
|
|
|
|
|
CROCS, INC. AND SUBSIDIARIES
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 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CROCS, INC. AND SUBSIDIARIES
REVENUES BY CHANNEL
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
|
|
% Change |
|
|
Constant Currency
% Change (1)
|
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
Q3 2018-2017
|
|
|
YTD 2018-2017 |
|
|
Q3 2018-2017 |
|
|
YTD 2018-2017 |
|
|
|
(in thousands) |
|
Wholesale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
$
|
44,883
|
|
|
|
$
|
41,642
|
|
|
|
$
|
171,477
|
|
|
|
$
|
169,975
|
|
|
|
7.8
|
%
|
|
|
0.9
|
%
|
|
|
12.2
|
%
|
|
|
2.2
|
%
|
|
Asia Pacific (2) |
|
|
40,938
|
|
|
|
36,286
|
|
|
|
172,152
|
|
|
|
155,541
|
|
|
|
12.8
|
%
|
|
|
10.7
|
%
|
|
|
16.1
|
%
|
|
|
7.6
|
%
|
|
Europe (2) |
|
|
29,373
|
|
|
|
28,576
|
|
|
|
130,150
|
|
|
|
116,932
|
|
|
|
2.8
|
%
|
|
|
11.3
|
%
|
|
|
5.5
|
%
|
|
|
3.8
|
%
|
|
Other businesses
|
|
|
1,525
|
|
|
|
254
|
|
|
|
2,133
|
|
|
|
545
|
|
|
|
500.4
|
%
|
|
|
291.4
|
%
|
|
|
515.0
|
%
|
|
|
288.3
|
%
|
|
Total wholesale
|
|
|
116,719
|
|
|
|
106,758
|
|
|
|
475,912
|
|
|
|
442,993
|
|
|
|
9.3
|
%
|
|
|
7.4
|
%
|
|
|
12.9
|
%
|
|
|
4.9
|
%
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
65,247
|
|
|
|
57,404
|
|
|
|
156,557
|
|
|
|
145,809
|
|
|
|
13.7
|
%
|
|
|
7.4
|
%
|
|
|
13.9
|
%
|
|
|
7.4
|
%
|
|
Asia Pacific (2) |
|
|
22,942
|
|
|
|
29,497
|
|
|
|
71,359
|
|
|
|
87,631
|
|
|
|
(22.2
|
)%
|
|
|
(18.6
|
)%
|
|
|
(22.1
|
)%
|
|
|
(21.0
|
)%
|
|
Europe (2) |
|
|
10,345
|
|
|
|
12,434
|
|
|
|
29,601
|
|
|
|
35,751
|
|
|
|
(16.8
|
)%
|
|
|
(17.2
|
)%
|
|
|
(13.3
|
)%
|
|
|
(18.5
|
)%
|
|
Total retail
|
|
|
98,534
|
|
|
|
99,335
|
|
|
|
257,517
|
|
|
|
269,191
|
|
|
|
(0.8
|
)%
|
|
|
(4.3
|
)%
|
|
|
(0.2
|
)%
|
|
|
(5.3
|
)%
|
|
E-commerce:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
26,827
|
|
|
|
21,413
|
|
|
|
70,515
|
|
|
|
58,552
|
|
|
|
25.3
|
%
|
|
|
20.4
|
%
|
|
|
25.7
|
%
|
|
|
20.3
|
%
|
|
Asia Pacific
|
|
|
11,283
|
|
|
|
9,537
|
|
|
|
45,134
|
|
|
|
35,483
|
|
|
|
18.3
|
%
|
|
|
27.2
|
%
|
|
|
19.6
|
%
|
|
|
22.2
|
%
|
|
Europe
|
|
|
7,701
|
|
|
|
6,230
|
|
|
|
23,138
|
|
|
|
18,182
|
|
|
|
23.6
|
%
|
|
|
27.3
|
%
|
|
|
25.4
|
%
|
|
|
20.8
|
%
|
|
Total e-commerce
|
|
|
45,811
|
|
|
|
37,180
|
|
|
|
138,787
|
|
|
|
112,217
|
|
|
|
23.2
|
%
|
|
|
23.7
|
%
|
|
|
24.1
|
%
|
|
|
21.0
|
%
|
|
Total revenues
|
|
|
$
|
261,064
|
|
|
|
$
|
243,273
|
|
|
|
$
|
872,216
|
|
|
|
$
|
824,401
|
|
|
|
7.3
|
%
|
|
|
5.8
|
%
|
|
|
9.3
|
%
|
|
|
3.8
|
%
|
| (1) |
|
Reflects year over year change as if the current period results were
in constant currency, which is a non-GAAP financial measure. See
“Non-GAAP Measures” on page 8 for more information.
|
| (2) |
|
In the third quarter of 2018, certain revenues previously reported
within the ‘Asia Pacific’ segment were shifted to the ‘Europe’
segment. The previously reported amounts for wholesale and retail
revenues in these regions for the three and nine months ended
September 30, 2017 have been revised to conform to the current year
presentation. See ‘Impacts on revenue of segment composition change’
table below for more information.
|
|
|
|
Impacts on revenue of segment composition change:
|
|
|
Three Months Ended
September 30, 2017
|
|
|
|
Nine Months Ended
September 30, 2017
|
|
|
|
Increase (Decrease) |
|
|
|
(in thousands) |
|
Wholesale:
|
|
|
|
|
|
|
|
|
Asia Pacific
|
|
|
$
|
(4,719
|
)
|
|
|
|
$
|
(21,545
|
)
|
|
Europe
|
|
|
4,719
|
|
|
|
|
21,545
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
Asia Pacific
|
|
|
—
|
|
|
|
|
(2,827
|
)
|
|
Europe
|
|
|
—
|
|
|
|
|
2,827
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CROCS, INC. AND SUBSIDIARIES
RETAIL STORE COUNTS
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2018
|
|
|
Opened |
|
|
Closed/
Transferred
|
|
|
September 30,
2018
|
|
Company-operated retail locations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kiosk/store in store
|
|
|
69
|
|
|
|
—
|
|
|
|
—
|
|
|
|
69
|
|
Retail stores
|
|
|
126
|
|
|
|
1
|
|
|
|
6
|
|
|
|
121
|
|
Outlet stores
|
|
|
203
|
|
|
|
2
|
|
|
|
6
|
|
|
|
199
|
|
Total
|
|
|
398
|
|
|
|
3
|
|
|
|
12
|
|
|
|
389
|
|
Operating segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
169
|
|
|
|
1
|
|
|
|
1
|
|
|
|
169
|
|
Asia Pacific
|
|
|
161
|
|
|
|
2
|
|
|
|
8
|
|
|
|
155
|
|
Europe
|
|
|
68
|
|
|
|
—
|
|
|
|
3
|
|
|
|
65
|
|
Total
|
|
|
398
|
|
|
|
3
|
|
|
|
12
|
|
|
|
389
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2017
|
|
|
Opened |
|
|
Closed/
Transferred
|
|
|
September 30,
2018
|
|
Company-operated retail locations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kiosk/store-in-store
|
|
|
71
|
|
|
|
—
|
|
|
|
2
|
|
|
|
69
|
|
Retail stores
|
|
|
161
|
|
|
|
1
|
|
|
|
41
|
|
|
|
121
|
|
Outlet stores
|
|
|
215
|
|
|
|
3
|
|
|
|
19
|
|
|
|
199
|
|
Total
|
|
|
447
|
|
|
|
4
|
|
|
|
62
|
|
|
|
389
|
|
Operating segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
175
|
|
|
|
1
|
|
|
|
7
|
|
|
|
169
|
|
Asia Pacific
|
|
|
186
|
|
|
|
3
|
|
|
|
34
|
|
|
|
155
|
|
Europe
|
|
|
86
|
|
|
|
—
|
|
|
|
21
|
|
|
|
65
|
|
Total
|
|
|
447
|
|
|
|
4
|
|
|
|
62
|
|
|
|
389
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CROCS, INC. AND SUBSIDIARIES
COMPARABLE RETAIL STORE SALES AND DIRECT TO CONSUMER COMPARABLE
STORE SALES
(UNAUDITED)
|
|
|
|
|
|
Comparable retail sales and direct to consumer sales by operating
segment were:
|
|
|
|
|
|
Constant Currency (1) |
|
|
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Comparable retail store sales: (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
19.9
|
%
|
|
|
2.8
|
%
|
|
|
13.0
|
%
|
|
|
(0.3
|
)%
|
|
Asia Pacific (3) |
|
|
3.2
|
%
|
|
|
(2.9
|
)%
|
|
|
3.4
|
%
|
|
|
(1.8
|
)%
|
|
Europe
|
|
|
15.1
|
%
|
|
|
(2.1
|
)%
|
|
|
11.4
|
%
|
|
|
(2.1
|
)%
|
|
Global
|
|
|
15.0
|
%
|
|
|
0.4
|
%
|
|
|
10.1
|
%
|
|
|
(1.0
|
)%
|
|
|
|
|
|
|
|
Constant Currency (1) |
|
|
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Direct to consumer comparable store sales (includes retail and
e-commerce): (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
21.6
|
%
|
|
|
9.2
|
%
|
|
|
15.2
|
%
|
|
|
2.4
|
%
|
|
Asia Pacific (3) |
|
|
8.4
|
%
|
|
|
3.7
|
%
|
|
|
10.4
|
%
|
|
|
8.6
|
%
|
|
Europe (3) |
|
|
19.3
|
%
|
|
|
4.9
|
%
|
|
|
15.4
|
%
|
|
|
2.5
|
%
|
|
Global
|
|
|
17.9
|
%
|
|
|
7.0
|
%
|
|
|
13.8
|
%
|
|
|
4.3
|
%
|
| (1) |
|
Reflects period over period change as if the current period results
were in constant currency, which is a non-GAAP financial measure.
See “Non-GAAP Measures” on page 8 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.
|
| (3) |
|
In the third quarter of 2018, certain revenues and expenses
previously reported within the ‘Asia Pacific’ segment were shifted
to the ‘Europe’ segment. The previously reported amounts for
comparable retail store sales and direct to consumer store sales for
the three months ended September 30, 2017 were not impacted. The
previously reported amounts for comparable retail store sales and
direct to consumer store sales for the nine months ended September
30, 2017 have been revised to conform to the current period
presentation. The adjustments for this revision had the following
impacts: Asia Pacific comparable retail stores decreased by 0.1%;
Europe comparable retail stores increased by 0.2%; Asia Pacific
direct to consumer comparable store sales increased by 0.2%; Europe
direct to consumer comparable store sales decreased by 0.1%.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20181108005212/en/
Source: Crocs
Crocs, Inc.
Investor Contacts:
Marisa Jacobs,
303-848-7322
mjacobs@crocs.com
or
Media
Contact:
Ryan Roccaforte, 303-848-7116
rroccaforte@crocs.com