Crocs predicts record annual sales on strong third quarter
today Oct 30, 2019
Crocs has announced an impressive 19.8% increase in revenue in the third quarter (21.0% in constant currencies), progress which drove expectation-beating earnings and led the Niwot, California-based footwear company to raise its full-year guidance to record levels.
Crocs’ net revenues for the third quarter ended September 30, 2019, totaled a record $312.8 million, up from the $261.1 million reported by the company in Q3 2018.
By channel, the company’s e-commerce revenues were the fastest growing, boasting a 28.2% year-over-year increase, but both the wholesale channel and retail comparable store sales also saw solid growth of 25.4% and 12.5%, respectively.
Crocs’ quarterly net income came to $35.7 million, up from $6.5 million in the same period in the previous year, while diluted earnings per share (EPS) were $0.51, up from $0.07.
The company’s adjusted EPS was $0.57, beating out the $0.39 FactSet estimate cited by MarketWatch by quite some way.
Year to date, Crocs’ revenues jumped 10.9% to $967.6 million, compared to $872.2 million in the first nine months of fiscal 2018, while net income hit $99.6 million, or $1.38 per diluted share, up from $61.3 million, or $0.58 per diluted share.
Speaking of the company’s fourth-quarter results in detail, Crocs President and CEO Andrew Rees pointed out that the brand had seen particular growth in the Americas, thanks in part to another strong back to school season.
This seasonal boost was no doubt helped by the rise of the so-called VSCO girl trend among teenagers. Named after the VSCO photo editing app, the trend is built around strong brand association and has incorporated Crocs as one of its key references, along with the likes of Birkenstock and Fjallraven Kanken.
“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,” Rees added.
Crocs’ previous full-year revenue guidance for fiscal 2019 predicted an increase in the range of 9% to 11%.
In the fourth quarter, the company expects to achieve revenues of between $245 and $255 million, compared to $216.0 million in Q4 2018.
Crocs further provided a preview for 2020, laying out an initial forecast predicting annual revenue growth of between 12% and 14%.
The company’s stock rose 3.9% in pre-market trading on Wednesday, following the release of its results.
On Wednesday, Crocs also announced the appointment of Indian actress, singer and film producer Priyanka Chopra Jonas as its new global brand ambassador as part of its ongoing “Come As You Are” campaign.
The campaign’s previous faces have included American entertainer Zooey Deschanel and British actress Natalie Dormer, as well as South Korean singer Kim Sejeong, Chinese actress Gina Jin, and Japanese actress and model Suzu Hirose.
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