Crocs Posts Solid Quarter

Diversification is paying off for Crocs, which beat analysts’ estimates Thursday.

The Niwot, Colo.-based maker of colorful resin shoes reported a 30 percent surge in revenue and a 13 percent increase in net income for the third quarter ended Sept. 30, on the back of a strong summer selling season.

Net income for the period was $25 million, or 28 cents a share, up from $22.1 million, or 25 cents, in the same period a year ago.

Net sales rose to $215.6 million from $177.1 million, thanks to broad-based, double-digit growth in wholesale, retail and e-commerce revenues.

Analysts were looking for earnings per share of 24 cents on revenue of $205.8 million, as polled by Yahoo Finance.

“Our improved operating results continued to be driven by growing consumer demand for our expanded product assortment.  After a strong summer selling season, we began shipping significantly more of our back-to-school and fall products to our global network of wholesale accounts and distributors versus a year ago,” Crocs President and CEO John McCarvel said in a company statement.

Crocs dramatically expanded its product line recently.  Among the new offerings are sneakers, rainboots and a toning line called CrocsTone that launched last week and comprises 12 to 16 styles of sandals, flip-flops and flats.

McCarvel said weekly sell-throughs of Crocs’ new products exceeded internal projections at the firm’s retail stores, and futures orders for next spring have shot up 60 percent.

To that end, the company ended the third quarter with accounts receivable of $81.3 million, up 24 percent from $65.8 million last year. 

Wholesale revenue increased 16 percent to $123.9 million, retail revenue surged 35 percent to $72.5 million and Internet sales jumped 19 percent to $19.2 million. 

By region, the Americas saw the largest increase of 31 percent, to $104 million.  Asia clocked revenue of $79 million, a 16 percent improvement, while Europe advanced 9 percent to $32.6 million. 

Crocs’ cash and cash equivalents vaulted 88 percent to $143.1 million. The firm has no significant long-term debt.

Fourth-quarter revenue is expected to rise 21 percent to $165 million, and EPS to rise to 2 cents, compared with last year’s loss of 13 cents.

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