US: Crocs swings to Q3 profit
- Q3 net income of $22.1m
- Revenues increased 1.7% to $177.1m
- Cost reduction programme working
US plastic clog maker Crocs has posted a return to third quarter profit, benefiting from cost reduction programmes.
Third quarter revenues increased 1.7% to $177.1m compared to the year ago period. The company's third quarter 2009 revenue included $11.5m in planned sales of previously impaired footwear.
Crocs reported net income of $22.1m in the third quarter, compared to a loss of $148.0m in the same period last year.
Inventory of $113.7m at 30 September 2009 was 20.6% lower than at 31 December 2008, the company said.
"Our third quarter results were driven by the continuing strength of our consumer-direct businesses and the favourable effects of our cost reduction programmes," said John Duerden, president and CEO.
"While we are encouraged by our top-line growth and return to profitability in the quarter, the normal seasonality of our business will make it difficult to maintain profitability in the fourth quarter.
"However, future wholesale bookings for the spring 2010 line are strong in all regions.
"When coupled with the launch of our new, targeted marketing programs, this provides us with increased confidence that we will return to profitability during 2010."
The company expects to generate between $110m and $115m in revenue during its fiscal fourth quarter, with a loss per diluted share between $0.20 and $0.15.
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