• Q4 GAAP net loss of US$56.9m
  • Sales fall 9.7%
Crocs revenues in the quarter declined 9.7%

Crocs revenues in the quarter declined 9.7%

US footwear business Crocs has narrowed its losses in the fourth quarter but said it expects sales in its first-quarter to be down on declines in its China business.

In the three months to the end of December, the company recorded a GAAP net loss of US$56.9m, compared with a loss of $66.9m in the prior year, which included higher charges.

Revenues in the quarter, however, declined 9.7% to $206.5m. On a constant currency basis, sales were down 5%.

CEO Gregg Ribatt, said: "We delivered fourth-quarter sales in line with expectations. Our business was essentially flat to last year, on a constant currency basis across all regions including the Americas, Europe, Japan and Asia with the exception of Latin America and China. We believe the strategy the company outlined last July will position Crocs for sustained success in the future.”

The company said it expects first-quarter revenues to be down on a constant currency basis by 10% to 12%, to a range of $260m to $265m, driven primarily by declines in its China business.

Declines in the second quarter are expected to “moderate substantially”, and growth to return in the second half as the strategic changes Crocs implemented in late 2014 impact the business.

Sterne Agee analyst, Sam Poser, noted: "The company turnaround plan which is ~7 months underway is proceeding well. A strong management team is in place, the product mix is becoming more focused and compelling, and systems and processes are improving. 2015 will be a transition year."