US: Crocs Q3 profit more than halves on weaker revenue
- Q3 net income of US$13m, down from $45.1m
- Revenues slipped 2.4% to $288.5m versus $295.6m
- Gross margin fell to 53.2% from 54.4%
Plastic shoe maker Crocs saw its net profit more than halve during the third quarter, hurt by lower wholesale and internet revenue in the Americas region and Japan.
"During the third quarter we saw a strong performance in our Asia Pacific region and marked improvement in all channels of our European business," said president and CEO John McCarvel.
"This positive performance was counterbalanced by weakness in the Americas and Japan where all sales channels performed below our expectations. The underperformance was especially acute in the Americas where we were impacted by wholesale accounts trimming at once orders to remain lean on inventory coupled with weak consumer confidence affecting our consumer-direct performance."
During the first nine months of the year, net income declined 42.7% to US$77.4m from $135m in the same period last year. Revenues, meanwhile, fell 7.3% to $964m versus $898.3m in the prior year.
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