Crocs, which has taken measures including the closings of more than 150 stores to boost its business, reported fourth-quarter earnings that topped forecasts across the board — but it wasn’t enough to mollify investors.
As of 10 a.m. ET, the lightweight-clog-maker’s stock was down 12 percent to $25.06 despite reporting revenues that increased 8.5 percent year over year to $216 million, beating market watchers’ forecasts for sales of $213 million. Its wholesale revenues climbed 9.7 percent, while e-commerce surged 18.9 percent, and retail same-store sales saw gains of 13.4 percent.
The adjusted loss of 10 cents a share was also better than Wall Street estimates of a loss of 24 cents.
“Our fourth-quarter results contributed to what was a very successful year,” said president and CEO Andrew Rees. “We had record revenues in many key markets, with the U.S. market leading the way. We have hit multiyear highs in revenues and gross margin … Global demand for our brand remains strong.”
For the full year, Crocs’ revenues hit $1.09 billion, increasing 6.3 percent over the prior-year period, with wholesale, online and retail comparable-store sales all improving in the double digits. However, it saw losses of around $60 million as the brand continued to work through its transformation plan.
Over the past two years, the Niwot, Colo.-based company ditched more than 150 underperforming stores, refocused on its Classic clog and invested more heavily in digital marketing and celebrity-centric collaborations. It also announced a new distribution center in Dayton, Ohio, to replace its existing facility outside of Los Angeles.
Crocs said it expects full-year revenues to be up 5 percent to 7 percent in 2019. It anticipates a negative impact by about $20 million resulting from more store closures and another $20 million of currency changes.
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