After a series of challenges hindered earnings for the past several quarters, Crocs Inc. is making progress.
The Niwot, Colo.-based company today posted first-quarter 2016 earnings and sales that topped market watchers’ estimates.
While Crocs reported a net loss of $2.4 million, or 8 cents per diluted share, during the same period last year, this time around the firm said its Q1 net income soared to $10.1 million, or 7 cents per diluted share. The improvement also beat analysts’ expectations for diluted earnings per share of 5 cents.
Crocs’ revenues climbed 6.5 percent, to $279.1 million, from the prior year’s same quarter when revenues were $262.2 million. Market watchers had forecast revenues of $265.9 million.
Crocs CEO Gregg Ribatt said the quarter offered evidence of the company’s progress in key areas, including the Americas, where sales advanced nearly 20 percent (constant currency), and in North America, where retail comps turned positive for the first time in 10 quarters.
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“We saw a direct-to-consumer comp sales increases in each region [as well as] strong double-digit e-commerce growth in every region, backed up by a positive retail comps,“ Ribatt said. “We continue to see the benefits from the restructuring initiatives executed over the past 21 months.”
Ribatt added that the firm’s supply chain execution, on-time delivery performance and inventory management have all improved significantly.
“As we proceed in 2016, we believe our financial performance will increasingly reflect the benefit of the significant improvements,” Ribatt said. “Despite having more work to do, we’re off to a good start as evidenced by solid Q1 performance. We remain confident that we’re on track to further transform and achieve both our full-year and future sales and profit objectives.”
Crocs expects Q2 revenues in the $340 million to $350 million range, compared to $345.7 million in the second quarter of last year.