Crocs Earnings Cheat Sheet: Record First Quarter Sales

Crocs, Inc. (NASDAQ:CROX) reported net income above Wall Street’s expectations for the first quarter. Crocs, Inc. and its subsidiaries are engaged in the design, development, manufacturing, marketing and distribution of consumer products, mainly casual & athletic shoes & shoe charms, from specialty resins referred to as Croslite.

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Crocs Earnings Cheat Sheet for the First Quarter

Results: Net income for Crocs, Inc. rose to $21.5 million (24 cents/share) vs. $5.7 million (7 cents/share) in the same quarter a year earlier. A more than threefold rise from the year earlier quarter.

Revenue: Rose 35.9% to $226.7 million YoY.

Actual vs. Wall St. Expectations: CROX beat the mean analyst estimate of 20 cents/share. Estimates ranged from 19 cents per share to 20 cents per share.

Quoting Management: John McCarvel, President and Chief Executive Officer, stated: “We were very pleased to achieve record first quarter sales along with significantly improved earnings over the year ago period. The contributions to our recent performance have been broad based and reflect the positive benefits of our multi-channel and international business model. In 2011, we have experienced solid demand for our products led by several new collections throughout each of our geographic regions. The collaborative efforts of our sales, marketing and merchandising teams is visible in our retail stores, at our wholesale accounts and on the internet, and is helping transform Crocs into a year round footwear brand. After a strong start to the year we head into our peak selling season with positive momentum and a clear strategy in place to capitalize on the many opportunities in front of us.”

Key Stats:

The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 25.7%, with the biggest boost coming in the most recent quarter when revenue rose 35.9% from the year earlier quarter.

Gross margins grew 0.6 percentage point to 52.6%. The growth seemed to be driven by increased revenue, as the figure rose 35.9% from the year earlier quarter while costs rose 34.1%.

Competitors to Watch: Deckers Outdoor Corp. (NASDAQ:DECK), NIKE, Inc. (NYSE:NKE), Skechers USA, Inc. (NYSE:SKX), The Timberland Company (NYSE:TBL), The Global Housing Group (GLHO), Wolverine World Wide, Inc. (NYSE:WWW), Steven Madden, Ltd. (NASDAQ:SHOO), LaCrosse Footwear, Inc. (NASDAQ:BOOT), Brown Shoe Company, Inc. (NYSE:BWS), and Phoenix Footwear Group, Inc. (AMEX:PXG).

Today’s Performance: Shares of CROX are trading at $20.30 as of April 28, 2011 at 4:42 PM ET, down over 4% from the previous closing price of $20.73.


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