Crocs Posts Smaller-Than-Expected Loss

Crocs Posts Smaller-Than-Expected Loss
The Crocs Cayman style.

Charges and wholesale revenue declines sent Crocs Inc. to a second-quarter loss, though the firm still beat Wall Street estimates.

In the quarter ended June 30, the Niwot, Colo.-based company lost $30.3 million, or 36 cents a diluted share, compared with a profit of $2.1 million, or 3 cents a share, a year ago.

Excluding one-time items, the loss was $5 million, or 6 cents a share, 15 cents better than the 21-cent loss expected by analysts polled by Yahoo Finance.

Second-quarter revenues fell by 11 percent to $197.7 million from $222.8 million in 2008.

In the three months, the company’s retail sales increased 58.9 percent to $55.3 million, and online sales gained 24.8 percent to $17.4 million, but wholesale revenues fell 28.2 percent to $125 million.

“Without being overly optimistic about it, we had a better quarter than we expected and that was driven by our Asian sales and our [company-owned] retail sales,” President and CEO John Duerden told Footwear News. “We’ve got work to do on the wholesale business. We really need to rebuild our relationships with the wholesalers. However, we’ve had some reasonably good sell-throughs in the fall line and the spring ’10 line.”

Excluding charges, Crocs said it expects a loss of between 6 cents and 14 cents a share in the third quarter on revenues of $150 million to $160 million. Analysts had previously expected a third-quarter loss of 20 cents on revenues of $140.1 million.

For the first half of 2009, Crocs posted a loss of $52.7 million, or 62 cents a share, versus a loss of $2.4 million, or 3 cents, in the first half of 2008. Revenues in the six months declined 21 percent to $332.6 million from $421.3 million.  Crocs’ shares gained 21 cents, or 5.2 percent, to close at $4.27 in trading before the announcement.

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