Crocs with successful year

The US-based company famous for its clogs reported fourth quarter and full year 2018 results. Fourth quarter revenue increased by 8.5% and full year revenue by 6.3%. As a result, Crocs raised its 2019 revenue guidance

Andrew Rees, President and Chief Executive Officer, commented: “Our fourth quarter results contributed to what was a very successful year. We had record revenues in many key markets, with the US market leading the way. We have hit multi-year highs in revenues and gross margin, while at the same time significantly reducing our SG&A run rate. Global demand for our brand remains strong, and as a result, we anticipate delivering revenue growth of 5% to 7% in 2019.”

Fourth quarter results

Revenue totalled 216.0 million US dollars, growing by 8.5% over the fourth quarter of 2017, or 11.3% on a constant currency basis. Store closures and business model changes reduced our revenues by approximately 7 million US dollars. The wholesale business grew by 9.7%, the e-commerce businesses grew by 18.9% and retail comparable store sales grew by 13.4%.

 

Net loss attributable to common stockholders, primarily related to the December 2018 repurchase and conversion of the company’s preferred stock previously owned by Blackstone Capital Partners VI L.P. and certain of its affiliates and transferees totalled  118.7 million US dollars compared to 28.3 million US dollars in the fourth quarter of 2017. After adjusting for non-recurring SG&A charges in the fourth quarters of 2018 and 2017, and for the non-recurring accounting adjustments related to the Blackstone Transaction, our non-GAAP net loss attributable to common stockholders were 7.7 million US dollars and 18.9 million US dollars in the fourth quarters of 2018 and 2017.

2018 results
Revenue totalled 1 088.2 million US dollars, growing by 6.3% over 2017, or 5.2% on a constant currency basis. Store closures and business model changes reduced the revenue level by approximately 60 million US dollars. The wholesale business grew by 7.8%, the e-commerce business grew by 22.5% and retail comparable store sales grew by 10.8%. Net loss attributable to common stockholders was 69.2 million US dollars, compared to 5.3 million US dollars in 2017. After adjusting for the non-recurring SG&A charges and accounting adjustments relating to the Blackstone Transaction, non-GAAP net income attributable to common stockholders was 65.9 million US dollars and 9.8 million US dollars in 2018 and 2017 respectively, as detailed on the ‘Non-GAAP earnings per share reconciliation’ schedule below. Our diluted net loss per common share was 1.01 US dollars in 2018 as a result of the accounting adjustments related to the Blackstone Transaction. Diluted net loss per common share was 0.07 US dollars in 2017. Our non-GAAP diluted net income per common share was 0.86 US dollars compared to 0.13 US dollars in 2017, as detailed on the ‘Non-GAAP earnings per share reconciliation’ schedule below.

With respect to 2019, Crocs expects revenue to be up 5% to 7% over 2018 revenues of 1 088.2 million US dollars. The company anticipates 2019 revenue will be negatively impacted by approximately 20 million US dollars resulting from store closures and approximately 20 million US dollar of currency changes.