Crocs Swings to Profit

Crocs Swings to Profit
An image from Crocs’ spring ’10 ad campaign.

Crocs Inc. returned to profitability in the first quarter on a 24 percent rise in revenues.

The Niwot, Colo.-based firm earned $5.7 million, or 7 cents a share — ahead of analyst projections for 2 cents — compared with a loss of $22.4 million, or 27 cents, a year ago.

Net revenues rose to $166.9 million from $134.9 million last year. Retail sales rose 23 percent to $34.4 million, while wholesale revenues reached $120.2 million, an increase of 26 percent.

“Our return to first-quarter profitability underscores the resiliency of Crocs as a brand and as a company,” John McCarvel, president and CEO, said in a written statement. “Revenues improved across all channels and across each region this quarter, driven by strong customer reception to our products. We also turned a critical corner in our wholesale channel this quarter, where revenues were up in all regions for the first time in more than a year.”

Looking ahead, Crocs forecast revenues in the second quarter between $210 million and $220 million, with earnings per share between 18 cents and 22 cents. Analysts were last expecting a profit of 17 cents.

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