Crocs Pops as Earnings Crush Estimates (CROX)

Shares of Crocs Inc. CROX are popping in the after-hours trade after the company reported that Q2 profits came in at $32.3 million, or $0.37 per share; revenues rose 15% year over year, to $228 million. The Street was looking for $0.22 per share on revenues of $220.3 million; that is quite a large beat. The company also reported that gross margins increased from 51.1% to 57.8% with the CROX’s operating margin coming in at 16.9%. Interesting to note is that sales and revenues increased across the board with wholesale up 12%, retail up 20% and Internet up 24%. On a regional basis, revenues in the Americas increased 23%, Asia increased 11%, and Europe increased 7%. Crox’s revenue guidance for the third quarter is expected to be around $205 million on a non-GAAP basis, which would be a 24% year over year increase. On a GAAP basis, revenues are expected to grow by 16% year over year. The company is also expecting Q3 EPS of $0.22 to $0.24. Shares of CROX are higher by 9.14% in the after-hours. “We believe sales are being driven by product innovation, improved service and brand building initiatives, as well as new distribution for the expansion of our company-operated stores and key wholesale accounts,” John McCarvel, Crocs’ CEO and president, said in a statement. Crocs, Inc. is a designer, manufacturer, distributor, worldwide marketer and brand manager of footwear for men, women, and children. The company designs and sells an offering of footwear, apparel, gear and accessories that utilize its closed cell-resin, called Croslite.