Strong performance for Crocs in second quarter

Worldwide
Published:  02 August, 2019

Revenues for the U.S. headquartered casual footwear manufacturer totalled US$358.9 million in the second quarter of 2019, up 9.4% over the second quarter of 2018, or 12.5% on a constant currency basis.

Store closures reduced Crocs’ revenues by approximately US$6 million, however, wholesale revenues grew 9.4% in the quarter, e-commerce +18%, and retail comparable store sales grew 11.8%. Gross margin was 52.8%, compared with 55.3% in the corresponding period of 2018, income from operations rose 29% to US$47.8 million from US$37.1 million, adjusted income from operations rose 12.7% to US$51.2 million and adjusted operating margin was 14.3% against 13.9% in the second quarter of 2018. Net income attributable to common stockholders amounted to US$39.2 million, up from US$30.4 million a year ago.

For full year 2019, Crocs forecasts revenues to grow 9% to 11% over 2018 revenues of US$1,088.2 million, compared to prior guidance of 5% to 7%. The Company said it continues to expect 2019 revenues to be negatively impacted by approximately US$25 million of currency changes and approximately US$20 million resulting from store closures.