US: Crocs Q3 profit up 13% on higher sales
- Q3 net income rose 13% to $25.0m
- Sales jumped 30% to $215.6m
- Spring/summer 2011 backlog up 60%
Growing consumer demand for its expanded range of colourful plastic shoes has helped lift third quarter profit by 13% Crocs Inc said Thursday (4 November). The company also hailed a 60% hike in its spring/summer 2011 backlog.
"After a strong summer selling season we began shipping significantly more of our back-to-school and fall products to our global network of wholesale accounts and distributors versus a year ago," said president and CEO John McCarvel.
"Our sales performance year-to-date has been very encouraging and helped fuel the 60% significant increase in our spring/summer 2011 backlog."
Net income rose to $25.0m or $0.28 per share, compared with $22.1m or $0.25 per share a year earlier. Excluding a one-time tax benefit, profit was $22.1m or $0.25 per share, the company said.
Revenue in the three months to 30 September jumped 30% to $215.6m from $177.1m last time. Growth was reported across its three revenue streams: wholesale sales rose 16% to $123.9m; retail sales were up 35% to $72.5m; and internet sales increased 19% to $19.2m.
By region, sales in the Americas were up 31% to $104; Asia increased 16% to $79m; and Europe rose 9% to $32.6m.
Gross profit for the third quarter increased 32% to $118.8m, or 55.1% of sales, from $89.9m or 50.7% of sales in same period last year.
Looking ahead, Crocs expects fourth quarter revenue to be 21% higher than last year, at around $165m. Inventory is seen dropping 10% on the third quarter, and earnings are likely to rise to $0.02 per share from last year's loss of $0.13.
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