Crocs Earnings: Profits Climb By Double Figures Again

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Crocs Inc. (NASDAQ:CROX) reported net income above Wall Street’s expectations for the second quarter. 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 Inc. Earnings Cheat Sheet

Results: Net income for Crocs Inc. rose to $61.5 million (68 cents per share) vs. $55.5 million (61 cents per share) in the same quarter a year earlier. This marks a rise of 10.8% from the year-earlier quarter.

Revenue: Rose 12% to $330.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Crocs Inc. beat the mean analyst estimate of 63 cents per share. It fell short of the average revenue estimate of $339.5 million.

Quoting Management: John McCarvel, President and Chief Executive Officer, stated: “We’re pleased with our ability to deliver profitability that exceeded our second quarter projections despite some challenges in certain areas of our business. Conditions in Europe, including currency headwinds, and slower than expected retail sales in the Americas resulted in slightly lower growth than expected. We are very encouraged by continued strong growth of Asia, sell through of our products in key wholesale accounts, our international retail performance, all driven by customer enthusiasm for our new products.”

Key Stats:

The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 20.5%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 29.6% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 31.8% and in the fourth quarter of the last fiscal year, the figure rose 17.8%.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 5 cents in the first quarter, by 2 cents in the fourth quarter of the last fiscal year, and by one cent in the third quarter of the last fiscal year.

Looking Forward: Analysts have a more positive outlook about the company’s results for next quarter. The average estimate for third quarter is 42 cents per share, an increase from 41 cents sixty days ago. For the fiscal year, the average estimate has moved up from $1.43 a share to $1.47 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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