Crocs Beats On Revenue But Misses On Earnings And Outlook

Crocs, Inc. CROX reported financial results Monday for the third quarter ended September 30, 2014.

GAAP revenue increased 4.8 percent in the third quarter of 2014 to $302.4 million, beating the average estimate of $295.42 million and in line with previously provided guidance of $300 million to $305 million. On a constant currency basis, revenue increased 5.4 percent in the third quarter of 2014.

Net income was $0.12 per diluted common share on a GAAP basis in the third quarter of 2014, below the average estimate of $0.14.  Excluding certain charges, the company reported a non-GAAP net income per common share of $0.30

Crocs President Andrew Rees said, "Revenues in the quarter were in line with our expectations in three out of four regions. Despite unfavorable exchange rates, we saw 13 percent year-over-year revenue growth in Europe, with the greatest part of that coming from strong wholesale channel performance. In the Americas, we saw a 10 percent revenue rise, as U.S. same-store sales trends began to improve in the back half of the quarter. Revenue declined slightly in Asia, where results were substantially impacted by weaker performance in our China wholesale and retail businesses. While Internet sales increased slightly in Japan, revenue for the region was down 9 percent overall due to weak retail same-store sales, lower at-once demand and continued weakness in the Yen."

The company expected GAAP revenue of approximately $200 to $210 million in the fourth quarter of 2014, below the average estimate of $226 million.

Crocs, Inc. traded at $11.80 in the aftermarket, down 2.88 percent.