Fresh off of an impressive Q2 that saw improvement in all three business segments, Crocs continues to focus on new product launches to drive growth. Speaking at Credit Suisse Group's conference, CFO Russ Hammer confirmed that new products were the primary catalyst to top-line growth for the year-to-date through June, adding that average selling prices have also benefitted from fresh looks in the store. 


As reported in the company’s Q2 earnings statement, 31% top line growth for Q2 was largely due to strong sales of new Spring/Summer 2010 offerings. Hammer said new product sell-through continues to “exceed expectations” as the company rolls out new ad campaigns for Fall/Winter 2010.


Hammer added that in-line comps for new products were up 30% for the YTD through August while in-line comps for back-to-school jumped 40% for the quarter-to-date through August. Consolidated company comps for the quarter-to-date were up 12% through August.


Among new products spurring growth, Hammer particularly highlighted the school board-approved Crocslites, which are absent of the holes traditionally associated with Crocs designs. Crocs unveiled eight new products for this year’s back-to-school period, significantly more than in previous years.


Hammer also provided investors with a sneak peek at new lines for Spring 2011, including the company’s first shot at the casual lifestyle sneaker and casual toning categories. Hammer added that management is “encouraged” by Spring/Summer pre-bookings, although he said it was too early to get a true read on futures orders.


Regarding go-forward initiatives, Hammer said Crocs hopes to continue to expand its global retail presence, which now totals 777. Crocs’ goal is to build company-owned retail locations to 400 by the end of the year from the 363 reported in June. Hammer said the company has identified wholesale opportunities in Asia, Europe, the Americas and “BRIC countries” (Brazil, Russia, India and China). Likewise, Hammer said Crocs, which reacquired distribution rights in the U.K., France and Germany in 2009, hopes to do the same for the Middle East in 2010 or 2011.


For the aforementioned marketing campaigns, Hammer said Crocs wants to expand its image from the “traditional” Crocs foam clog without alienating its core audience. The company has developed a character named “Croslite” to appeal the “cosmopolitan woman…not the suburban housewife in the US” because it wants to adopt a more appropriate global presence.