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Crocs, Inc. Reaffirms Third Quarter and 2018 Guidance; Announces Participation in the Goldman Sachs 25th Annual Global Retailing Conference

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Crocs, Inc. (NASDAQ:CROX), a world leader in innovative casual footwear
for men, women and children, today reiterated its guidance for the third
quarter and full year ended December 31, 2018 in anticipation of its
presentation at the Goldman Sachs 25th Annual Global
Retailing Conference.

Andrew Rees, President and Chief Executive Officer, said, "It's been a
good summer, and the momentum we saw throughout June and July has
continued as back to school shopping escalated. Our clogs and sandals,
in particular, continue to be in demand. We are well positioned for the
balance of the year, and are reiterating our previously issued third
quarter and full year 2018 guidance."

Third Quarter 2018:

With respect to the third quarter of 2018, the Company continues to
expect:

  • Revenues of $240 to $250 million compared to $243.3 million in the
    third quarter of 2017.
  • Gross margin to be approximately 50 basis points above last year's
    50.8% rate.
  • SG&A to be slightly higher than last year's third quarter SG&A of
    $120.8 million. This includes non-recurring charges of approximately
    $6 million, compared to $3.6 million in the third quarter of 2017.
    These non-recurring charges consist of approximately $5 million
    relating to the closure of our manufacturing facilities, approximately
    $4 million of which will be non-cash, and approximately $1 million
    associated with our SG&A reduction plan.

Full Year 2018:

With respect to 2018, the Company continues to expect:

  • Revenues to increase low single digits over 2017 revenues of $1,023.5
    million, as we expect double digit e-commerce growth and moderate
    wholesale growth to more than offset lower retail revenues due to
    operating fewer stores and business model changes.
  • Gross margin to increase approximately 70 to 100 basis points over
    2017 gross margin of 50.5%.
  • SG&A to be slightly higher than our prior guidance of $485 million,
    compared to $499.9 million last year. This includes approximately $18
    million of non-recurring charges, compared to our prior guidance of
    approximately $15 million, and $17 million of non-recurring charges in
    2017. These non-recurring charges consist of approximately $14 million
    relating to the closure of our manufacturing facilities, approximately
    $8 million of which will be non-cash, and approximately $4 million
    associated with our SG&A reduction plan.
  • Income from operations to be approximately $50 million compared to
    $17.3 million in 2017.
  • Depreciation and amortization to be approximately $30 million compared
    to $33.1 million in 2017.
  • Income tax expense of approximately $17 million compared to $7.9
    million in 2017.

Goldman Sachs 25th Annual Global Retailing Conference

Crocs, Inc. will be presenting at the Goldman Sachs 25th
Annual Global Retailing Conference on Wednesday, September 5, 2018 at
11:15 am EST. The presentation will be webcast live and can be accessed
on the Crocs website, www.crocs.com,
and will remain available through March 5, 2019. The conference is being
held at the Plaza Hotel in New York, New York.

About Crocs, Inc.:

Crocs, Inc. (NASDAQ:CROX) is a world leader in innovative casual
footwear for women, men, and children, combining comfort and style with
a value that consumers know and love. Every pair of shoes within Crocs'
collection contains Croslite™ material, a proprietary, molded footwear
technology, delivering extraordinary comfort with each step.

In 2018, Crocs reinforces its mission of "everyone comfortable in their
own shoes" with the second year of its global Come As You Are™ campaign.
To learn more about Crocs or Come As You Are, please visit www.crocs.com or
follow @Crocs on Facebook, Instagram and Twitter.

Forward Looking Statements:

This news release includes "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements include, but are not limited to, statements regarding
prospects, expectations and our revenues, gross margin, and SG&A, income
from operations, depreciation and amortization and income tax expense
outlook. These statements involve known and unknown risks, uncertainties
and other factors, which may cause our actual results, performance or
achievements to be materially different from any future results,
performances, or achievements expressed or implied by the
forward-looking statements. These risks and uncertainties include, but
are not limited to, the following: current global financial conditions;
the effect of competition in our industry; our ability to effectively
manage our future growth or declines in revenues; changing consumer
preferences; our ability to maintain and expand revenues and gross
margin; our ability to accurately forecast consumer demand for our
products; our ability to successfully implement our strategic plans; our
ability to develop and sell new products; our ability to obtain and
protect intellectual property rights; the effect of potential adverse
currency exchange rate fluctuations and other international operating
risks; and other factors described in our most recent Annual Report on
Form 10-K under the heading "Risk Factors" and our subsequent filings
with the Securities and Exchange Commission. Readers are encouraged to
review that section and all other disclosures appearing in our filings
with the Securities and Exchange Commission.

All information in this document speaks as of August 30, 2018. We do not
undertake any obligation to update publicly any forward-looking
statements, including, without limitation, any estimate regarding
revenues, margins, or SG&A, whether as a result of the receipt of new
information, future events, or otherwise.

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