The clog maker beat analysts’ earnings and revenue estimates on Tuesday morning, leaning on double-digit e-commerce growth and solid wholesale gains to make up for shuttered stores.
Earnings per share came in at 35 cents for the second quarter of 2018, 4 cents above analysts’ estimates. Revenues beat targets at $328 million, increasing 4 percent year over year, versus the $321.76 million that analysts predicted.
E-commerce saw the most dramatic sales gains at 23.8 percent over last year, while wholesale grew 7.2 percent and the company’s retail division posted same-store sales increases of 7.1 percent.
“Revenues and gross margin exceeded our guidance, and our diluted earnings per share were 75 percent above last year’s second quarter based on the strength of our product and the growing demand for our brand,” Andrew Rees, Crocs Inc.’s president and CEO, said in a statement. “Our clogs and sandals continue to perform well, and we are well positioned for the back half of the year.”
Despite topping forecasts for the quarter, the company reiterated its full-year outlook of low single-digit revenue growth, estimating that it will end the year with revenues between $1.03 billion and $1.05 billion. The stock slid when the market opened, falling more than 8 percent to $16.50 as of 10:45 a.m. ET.
Crocs also announced that its CFO Carrie Teffner will step down from the company on April 1, 2019, after a transition period. Anne Mehlman will assume the role later this month. She joins the team from Zappos.com, where she was CFO. Mehlman previously worked at Crocs for five years as VP of corporate finance.
“Anne has a terrific background, made even stronger by her time at Zappos leading the finance and supply chain teams,” said Rees. “We will benefit from her experience as we continue to pursue our strategic priorities, grow our top line and improve our profitability.”