Crocs Q2 revenues up 9.4 percent

Crocs, Inc. has announced that revenues for the second quarter were 358.9 million dollars, up 9.4 percent or 12.5 percent on a constant currency basis. The company said, store closures reduced revenues by approximately 6 million dollars, while wholesale revenues grew 9.4 percent, e-commerce revenues grew 18 percent, and retail comparable store sales grew 11.8 percent.

Commenting on the second quarter results, Andrew Rees, the company’s President and CEO, said in a statement: "With strong revenue growth and better than expected gross margins, we expanded our operating margin 200 basis points to approximately 13 percent of sales and grew our diluted earnings per share 57 percent compared to last year’s second quarter. We expect our revenue growth in the back half of the year to significantly outpace the first half; accordingly, we are increasing our full year outlook.”

Review of Crocs’ second quarter operating results

Gross margin for the quarter was 52.8 percent, compared to 55.3 percent in last year’s second quarter, while djusted gross margin was 170 basis points below last year’s second quarter. Net income reached 39.2 million, up from 30.4 million dollars in the second quarter of 2018, while adjusted net income was 42.6 million dollars and 41.3 million dollars in the second quarters of 2019 and 2018.

For 2019, the company now expects revenues to grow 9 percent to 11 percent over 2018 revenues of 1,088.2 million dollars, compared to prior guidance of 5 percent to 7 percent. The company continues to expect revenues to be negatively impacted by approximately 25 million dollars of currency changes and approximately 20 million dollars resulting from store closures. Adjusted gross margin is expected to be approximately 50.5 percent, down 100 basis points from 51.5 percent in 2018. On a GAAP basis, gross margin is expected to be approximately 49.5 percent.

For the third quarter, the company expects revenues to be between 295 and 305 million dollars compared to 261.1 million dollars in the third quarter of 2018 with negative impact of approximately 2 million dollars of currency changes and approximately 3 million dollars resulting from store closures. Adjusted gross margin is expected to be approximately 51.5 percent compared to GAAP gross margin of 53.3 percent in the third quarter of 2018.

Picture:Facebook/Crocs