US: Crocs losses narrow despite sales fall
- Full year revenues down 10%
- Revenues up 7.9%
- US market slides but Europe and Asia up
A rise in fourth quarter revenues has helped footwear firm Crocs report a narrowing of its net losses for its full year.
The company today said that revenues for its full year decreased 10.5% to US$645.8m compared to revenues of $721.6m in 2008. Net losses narrowed to $42.1m, compared to a net loss of $185.1m fiscal 2008.
Fourth quarter revenues meanwhile increased 7.9% to $136m whilst net losses reached $11.4m, compared to a fourth quarter 2008 net loss of $34.7m.
Crocs added that in its fourth quarter retail sales increased 25.9% to $43.8m. Internet sales increased 20.6% to $15.3 and wholesale sales decreased 2.1% to $77.0m.
Although sales to the US fell 3% in the quarter to $68m, Europe increased 51.2% to $16.5m and Asia increased 15.5% to $50.5 m.
"The past year was marked by significant operational changes that helped stabilise our business and reshaped the outlook for our company," said John Duerden, president and CEO of Crocs. "I believe the brand remains strong and continues to attract a large and loyal consumer following. In the near term, our focus remains on reinvigorating the top line, controlling costs and introducing fun and innovative footwear.
"In 2010, we will re-engage the consumer through more targeted and effective advertising programmes and through further development of our direct and indirect distribution channels. While there is still more work ahead of us, the progress we made during the past 12 months strengthening our balance sheet, right-sizing our cost structure and tightening our distribution have already yielded positive results, have strengthened the core of our business and provide a solid platform for future profitable growth."
Looking ahead, the company said it expects to generate between $155m and $160m in revenue during its 2010 first quarter, with diluted earnings per share at approximately break even. This guidance assumes an effective tax rate of 30%.
The company has also announced it has has promoted John McCarvel to president and chief executive officer effective 1 March.
He succeeds John Duerden, who is retiring from the company and resigning as president and CEO.
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