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Crocs closes the year with 13% hike in revenue

Feb 28, 2020 United States
Crocs closes the year with 13% hike in revenue
The famous clog brand has announced two digits growth rates for the fourth quarter of the year (+21.8%) and the full year (13.1%). Crocs closed the year with optimism, despite the coronavirus expected impacts
“Our record fourth quarter and full year top-line combined with our double-digit operating margin underscores the progress we have made executing our key strategic initiatives. Focusing on our core clog and sandal categories and further igniting brand heat through impactful marketing campaigns and collaborations are fuelling strong revenue growth. Equally important, the work we’ve done reducing our expense structure is allowing us to translate our top-line success into even stronger earnings growth as we continue to make important investments in the business”, commented Andrew Rees, President and Chief Executive Officer.

“Although we begin the new year with great momentum and exciting plans in place to build on our recent growth, our immediate focus is with everyone affected by the coronavirus and ensuring that our employees in China, along with our partners, safely navigate the risks associated with this global health epidemic. Despite this difficult situation, we continue to be very optimistic about our long-term growth prospects in China and our Asia region”, Mr Rees concluded.

Fourth Quarter Results

Crocs revenue in the last quarter was 263.0 million US dollars, growing by 21.8% over the fourth quarter of 2018, or 22.7% on a constant currency basis. Currencies negatively impacted the company's revenue by approximately 2.0 million US dollars, while store closures contributed to revenue reduction of roughly 2.0 million US dollars. Wholesale revenue grew by 22.4%, e-commerce revenue grew by 34.3%, and retail comparable store sales on a constant currency basis grew by 16.0%.

Diluted net income per common share was 0.29 US dollars for the fourth quarter of 2019, compared to a diluted net loss per common share of 1.72 US dollars in the fourth quarter of 2018. Excluding expenses primarily incurred in connection with the relocation of the distribution centres in the US and the Netherlands and non-recurring SG&A charges, adjustments to income tax expense (benefit), adjusted diluted net income per common share was 0.12 US dollars.

2019 Operating Results

Revenue in 2020 totalled 1 230.6 million US dollars, growing by 13.1% over 2018, or 15.6% on a constant currency basis. Store closures reduced the company's revenue by 17.2 million US dollars. Wholesale revenue grew by 13.5%, the e-commerce business grew by 24.2%, and retail comparable store sales grew by 12.4%.

Diluted net income per common share was 1.66 US dollars in 2019 compared to diluted net loss per common share of 1.01 US dollars in 2018. Excluding expenses primarily incurred in connection with the relocation of the distribution centers in the US and the Netherlands and non-recurring SG&A charges, adjustments to income tax expense (benefit) adjusted diluted net income per common share was 1.61 US dollars compared to 0.86 US dollars in 2018.

2020 Forecast


For the first quarter of 2020, Crocs expects revenue to be between 305 and 325 million US dollars compared to 295.9 million US dollars in the first quarter of 2019. The company anticipates revenue for the first quarter of 2020 to  be negatively impacted by approximately 20 to 30 million US dollars due to disruptions in the Asia business caused by the COVID-19 (coronavirus).

With respect to full 2020, Crocs now expects revenue to be up by 8% to 12% over 2019 revenue of 1 230.6 million US dollars. The company anticipates 2020 revenue to be negatively impacted by 40 to 60 million US dollars as a result of disruptions to the Asia business as a result of the coronavirus.

Image credits: Yahoo Finance

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