Crocs had yet another better-than-expected earnings quarter — but once again, it wasn’t enough to boost the clog-maker’s stock.
As of market close on Tuesday, the company saw its shares drop nearly 5% to $26.94 despite posting first-quarter profits that totaled $24.7 million, or 33 cents per share — up from $12.5 million, or 15 cents per share, from the prior-year period. Revenues similarly climbed to $295.9 million, compared with $283.1 million during the same time in 2018.
Analysts forecasted EPS at 25 cents per share, with Crocs surpassing consensus estimates over the last four quarters.
“2019 is off to a great start,” president and CEO Andrew Rees said in a statement. “Revenues exceeded expectations as demand for our product and excitement around the brand continued to yield accelerated sell-throughs. We were particularly pleased with the exceptional direct-to-consumer performance successfully comping an earlier Easter last year. We have now delivered five consecutive quarters of double-digit DTC comp growth. I am more confident than ever in the strength of our brand and our future.”
Impacting Crocs’ sales were the closures of more underperforming stores, which it said reduced its top line by about $6 million. Still, retail comps rose 8.7%, while wholesale revenues rose 5.2% and e-commerce shot up 16.5%.
Over the past couple years, the Niwot, Colo.-based company has shuttered more than 150 stores as it refocused its business around its Classic clog and invested more heavily in digital marketing and celebrity-centric collaborations.
For the full year, the shoe brand expects a gain of 5% to 7% in sales from last year’s total of $1.09 billion, anticipating a $20 million loss resulting from store closures. It also announced a new distribution center in Dayton, Ohio, to replace its facility outside of Los Angeles.
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