• Q2 profit increased 49% to $45.1m
  • Revenue up 7.5% to $295.6m
  • Strong sales in Asia and the Americas 

Strong sales in Asia and the Americas helped plastic shoe firm Crocs to book a 49% jump in third quarter net profits.

Net income rose to US$45.1m for the quarter ended 30 September, compared to $30.2m in the same period last year. Income from operations grew 14.3% to $40m.

The company, which operates 499 stores, reported revenue growth of 7.5% to $295.6m, driven by strong sales in Asia and the Americas. Revenue was up 11.3% in Asia and 7.4% in the Americas, while sales slipped 2.9% in Europe.

Retail sales increased 17.7% to $112.2m, internet sales were up 6% to $27.1m and wholesale revenue climbed 1.5% to $156.2m.

CEO and president John McCarvel said: "Our Americas and Asia performance helped to more than offset weakness in the European market, where challenging macroeconomic conditions and foreign currency exchange rate fluctuations continue to pressure our results.

"At the same time, we haven't been fully immune to some of the recent choppiness in Asia, particularly in Japan, where consumer demand slowed as the third quarter progressed. Despite the economic headwinds we faced during quarter, we continued to grow the business and make strategic progress toward our long-term goal of evolving Crocs into a four-season brand."

Meanwhile, BB&BT Capital Markets has lowered its full-year earnings guidance to $1.36, compared to its previous target of $1.52.

Commenting on the results, analyst Scott Krasik said: "With a European business that is under pressure and a choppy Asia business, we do not see meaningful upside potential to our EPS estimate next year. We would need to see a sustainable turnaround in Europe and Asia to take a more constructive position on the stock."