Crocs’ wholesale revenues declined 5.6% in the first quarter, retail comparable store sales grew 7.5%, while total retail revenues were down 15% due to COVID-19 closures. The decline in wholesale and retail are partially offset by e-commerce revenue growth of 15.8%. Gross margin was 47.7%, against 46.5% in last year’s first quarter. Income from operations declined 36.1% to US$20.8 million from US$32.6 million in the first quarter of 2019, and operating margin fell 360 basis points to 7.4%. Diluted earnings per share fell to US$0.16, as compared with US$0.33 in the same quarter of the previous year.
“Amidst unprecedented market conditions globally, our total revenue held up well with exceptional performance in our Americas and e-commerce businesses that was overshadowed by COVID-19 related store closures. Despite this recent softness, Crocs remains a strong, vibrant brand that is very well positioned”, said Andrew Rees, President and CEO, Crocs. “In the near-term, we have no liquidity concerns and have taken quick action to ensure we will be strongly cash flow positive for the remainder of the year. Over the long-term, we are confident we will restore our momentum in 2021 and continue our positive growth trajectory for years to come.”
Upon the announcement of results, Crocs’ share declined 16% on April 24 on NASDAQ as uncertainty remains ahead and tougher second quarter is expected.