Crocs Inc. Earnings Cheat Sheet: Revenue Grows Again by Double-Digits

Crocs, Inc. (NASDAQ:CROX) reported higher profit for the third quarter as revenue showed growth. Crocs and its subsidiaries are engaged in the design, development, manufacturing, marketing, and distribution of consumer products, mainly casual and athletic shoes and shoe charms, from specialty resins referred to as Croslite.

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Crocs Earnings Cheat Sheet for the Third Quarter

Results: Net income for Crocs, Inc. rose to $30.2 million (33 cents per share) vs. $25 million (28 cents per share) in the same quarter a year earlier. This marks a rise of 20.8% from the year earlier quarter.

Revenue: Rose 27.5% to $274.9 million from the year earlier quarter.

Actual vs. Wall St. Expectations: CROX beat the mean analyst estimate of 32 cents per share. Analysts were expecting revenue of $274.3 million.

Quoting Management: John McCarvel, President and Chief Executive Officer, stated: “We continued to experience strong global demand versus the prior year period, particularly in Asia. The performance of our spring / summer 2011 product line and the composition of our backlog at September 30, 2011 underscores the progress we have made diversifying Crocs beyond its clog origins. We still remain confident that our long-term brand and growing selection of sneakers, casual shoes, and boots have the ability to penetrate the cold weather selling season in each of our geographic regions. While these are competitive categories with established leaders, we believe we can continue to capture market share and further reduce the seasonality of our business over the long-term.”

Key Stats:

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 29.3%, 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 17 cents in the second quarter, by 5 cents in the first quarter, and by 3 cents in the fourth quarter of the last fiscal year.

Gross margin shrank 1.6 percentage points to 53.5%. The contraction appeared to be driven by increased costs, which rose 31.9% from the year earlier quarter while revenue rose 27.5%.

Looking Forward: Over the last 30 days, analysts have not been optimistic about the company’s next quarter performance. The average estimate for the fourth quarter is now 5 cents per share, down from 13 cents. Over the past sixty days, the average estimate for the fiscal year has reached $1.22 abs per share, a decline from $1.38.

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).

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(Source: Xignite Financials)