Crocs, Inc. Earnings Cheat Sheet: Exceeds Forecasts with Boost of Profit Rise
Crocs, Inc. (NASDAQ:CROX) reported net income above Wall Street’s expectations for the second 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.
Crocs Earnings Cheat Sheet for the Second Quarter
Results: Net income for Crocs, Inc. rose to $55.5 million (61 cents per share) vs. $32.3 million (37 cents per share) in the same quarter a year earlier. This marks a rise of 71.9% from the year earlier quarter.
Revenue: Rose 29.6% to $295.6 million from the year earlier quarter.
Actual vs. Wall St. Expectations: CROX beat the mean analyst estimate of 44 cents per share. It beat the average revenue estimate of $281.6 million.
Quoting Management: John McCarvel, President and Chief Executive Officer, stated: “Our second quarter results demonstrate the progress we have made evolving Crocs into an innovative footwear leader. We achieved our highest quarterly revenue and unit volume in the Company’s history as revenues surpassed $295 million and we sold over 14 million pair. Our performance was fueled by demand for our most diverse product line ever and included double-digit growth in each of our distribution channels and geographic regions. As a result, we experienced significant operating expense leverage and a substantial increase in profitability versus a year ago. Looking ahead to the back half of 2011, we expect our momentum to continue through summer and back to school. We are also optimistic about our prospects for the fall and holiday given the 41.9% increase in our backlog which totaled $168.1 million at the end of the second quarter .”
The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 26.9%, with the biggest boost coming in the first quarter when revenue rose 35.9% from the year earlier quarter.
The company has now topped analyst estimates for the last four quarters. It beat the mark by 5 cents in the first quarter, by 3 cents in the fourth quarter of the last fiscal year, and by one cent in the third quarter of the last fiscal year.
Gross margin shrank 0.3 percentage point to 57.6%. The contraction appeared to be driven by increased costs, which rose 30.4% from the year earlier quarter while revenue rose 29.6%.
Competitors to Watch: Deckers Outdoor Corp. (NASDAQ:DECK), NIKE, Inc. (NYSE:NKE), Skechers USA, Inc. (NYSE:SKX), The Timberland Company (NYSE:TBL), 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).
(Source: Xignite Financials)