Crocs raises guidance after record third quarter

Worldwide
Published:  30 October, 2019

The U.S. based footwear manufacturer has posted revenues of US$312.8 million for the third quarter of 2019, up 19.8% year-on-year.

According to Crocs, currencies negatively impacted its revenues by approximately US$3 million in the third quarter, while store closures reduced revenues by approximately US$4 million. Wholesale revenues grew 25.4% in the period, e-commerce revenues by 28.2%, and retail comparable store sales by 12.5%. Gross margin was 52.4%, compared with 53.3% in the same quarter of 2018, income from operations rose 187% to US$39.9 million from US$13.9 in the previous year, and operating margin rose 750 basis points to 12.8%. Net income attributable to common stockholders was US$35.7 million, up from US$6.5 million a year ago.

“We delivered an excellent quarter highlighted by 20% top-line growth and record third quarter revenues of US$313 million”, said Andrew Rees, President and CEO, Crocs. “Based on the strength of our recent performance and start to the fourth quarter, we are raising our full year guidance to 11% to 12% revenue growth over 2018, which would result in record annual sales for our Company. The Crocs brand momentum continues to gain pace, and for 2020, we anticipate revenue growth over 2019 of 12% to 14%”, he added.

For the fourth quarter of 2019, Crocs expects revenues to be between US$245 and US$255 million, up from US$216 million in the previous year. The Company expects fourth quarter 2019 revenues to be negatively impacted by approximately US$2 million of currency changes and approximately US$2 million resulting from store closures.

Men's Swiftwater with leather upper