Crocs Inc. beat analyst estimates last week by returning to profitability, though the fourth quarter will likely be a tough slog.
For its third quarter ended Sept. 30, the company reported a profit of $22.1 million, or 25 cents per diluted share, compared to a loss of $148 million, or $1.79, for the same quarter of 2008.
Sales inched up nearly 2 percent to $177.1 million, versus $174.2 million during the third quarter of last year. Analysts surveyed by Yahoo Finance had expected a loss of 8 cents per share on sales of $156.4 million.
During the quarter, the firm also secured a new asset-backed credit facility that increases its borrowing ability by $30 million. Still, the company said that seasonal variances will likely reverse the earnings trend in the coming quarter.
The company said it expects a loss of 15 to 20 cents a share for the fourth quarter on sales of $110 million to $115 million.
“While we are encouraged by our top-line growth and return to profitability in the quarter, the normal seasonality of our business will make it difficult to maintain profitability in the fourth quarter,” said President and CEO John Duerden in a statement. “However, future wholesale bookings for the spring 2010 line are strong in all regions.”