World Footwear

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Crocs raises full year outlook

Oct 30, 2019 United States
Crocs raises full year outlook
US-based Crocs posted a 19.8% revenue growth in the third quarter. The company now expects 2019 revenues to grow 11% to 12% and reach record levels
Andrew Rees, President and Chief Executive Officer, commented: “We delivered an excellent quarter highlighted by 20% top-line growth and record third quarter revenues of 313 million US dollars. Our Americas business delivered exceptional growth, driven in part by another highly successful back to school season. 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. The Crocs brand momentum continues to gain pace, and for 2020, we anticipate revenue growth over 2019 of 12% to 14%”.

Third Quarter Results

Croc's revenue totalled 312.8 million US dollars, growing by 19.8% over the third quarter of 2018, or 21.0% on a constant currency basis. Currencies negatively impacted Crocs revenue by approximately 3.0 million US dollars, while store closures contributed to reduce revenue by approximately 4.0 million US dollars. Revenue growth was spread across all segments of business: wholesale revenue grew by 25.4%, e-commerce revenue by 28.2%, and retail comparable store sales by 12.5%.

Net income attributable to common stockholders was 35.7 million US dollars, up from 6.5 million US dollars in the third quarter of 2018. Excluding non-recurring gross margin and SG&A charges and pro forma adjustments related to the company’s previously outstanding Series A Preferred Stock, adjusted net income attributable to common stockholders was 40.2 million US dollars and 14.8 million US dollars in the third quarters of 2019 and 2018, respectively, as detailed on the 'Non-GAAP earnings per share reconciliation' schedule below.

Financial Outlook

With respect to the fourth quarter of 2019, the company expects revenue to be between 245 and 255 million US dollars compared to 216.0 million US dollars in the fourth quarter of 2018. The company expects fourth quarter 2019 revenue to be negatively impacted by approximately 2 million US dollars of currency changes and approximately 2 million US dollars resulting from store closures.

With respect to 2019, Crocs now expects revenue to grow 11% to 12% over 2018 revenue of 1 088.2 million US dollars, compared to prior guidance of 9% to 11%. The company expects 2019 revenue to be negatively impacted by approximately 28 million US dollars of currency changes and approximately 20 million US dollars resulting from store closures.

2020 Preview

With respect to 2020 revenue, Crocs expects 12% to 14% growth over 2019 revenue. This estimate assumes that currency will negatively impact results by approximately 10 million US dollars.

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