• Q1 GAAP earnings drop to $6.4m
  • Sales edge up 0.2%

Plastic shoe maker Crocs saw its earnings tumble in the first quarter as a result of one-off costs, the impact of the Easter shift and negative currency impacts in Japan and Russia.

In the three months to the end of March, GAAP net income totaled US$6.4m. This compared to earnings of $29m a year earlier. The company recorded $8.1m in non-GAAP charges, of which $1.1m were non-cash charges.

Crocs CFO J Jeff Lasher said: "Russia represents about 15% of our business in Europe and our results in the region were impacted by the sudden weakening of the ruble in mid-January. As we continue to diversify our product line with new footwear brands such as the Stretch Sole and Busy Day and carryover products such as the Huarache and A-Leigh wedge, we are experiencing a reduction in Clog sales as a percentage of revenues."

GAAP revenue edged up 0.2% in the quarter to $312.4m, in-line with the firm's previously provided guidance of $305m to $315m. Crocs said its Asia segment continued to deliver solid quarterly revenue growth across all channels and its Europe segment remained on a positive trajectory.