Crocs Breaks $1 billion in 2011 with Strong Fourth Quarter

Crocs, Inc.'s revenue increased 14 percent to $203.7 million in the fourth quarter ended Dec. 31, 2011, compared to revenue of $179.2 million in the fourth quarter of 2010. Net income for the fourth quarter 2011 was $5.6 million, or 6 cents per diluted share compared to a net income of $4.7 million, or 5 cents per diluted share in the fourth quarter 2010.

Revenue for 2011 increased 27 percent to $1.0 billion, over revenue of $789.7 million reported in 2010. Net income for 2011 improved to $112.8 million, or $1.24 per diluted share compared to net income of $67.7 million, or $0.76 per diluted share in 2010.

“The past 12-months were a period of terrific growth and important progress for our company,” said John McCarvel, president and CEO. “In 2011, we grew annual sales 27 percent to surpass $1 billion for the first time ever. The success of existing and new product introductions drove improvements in our average selling price in addition to strong organic growth from channel & geographic expansion. As we move forward through 2012, we are confident that our long-term strategies will continue to deliver meaningful market share gains in spring and summer while also increasing our relevance during the cold weather season.”

Year-over year fourth quarter changes in the company's channel and regional revenue streams were as follows:

• Wholesale sales increased 6 percent to $104.1 million;
• Retail sales increased 24 percent to $74.1 million;
• Internet sales increased 17 percent to $25.5 million;
• Americas increased 10 percent to $103.6 million;
• Asia increased 22 percent to $76.1 million;
• Europe increased 6 percent to $24.0 million.

Gross profit for the fourth quarter of 2011 increased 16 percent to $99.8 million, or 49.0 percent as a percentage of sales, from $86.3 million, or 48.2 percent of sales in same period last year. Selling, General, & Administrative expenses (SG&A) increased 17 percent to $94.9 million versus $81.1 million a year ago. As a percentage of sales, SG&A increased to 46.6 percent from 45.3 percent in the fourth quarter of 2010.

• Wholesale sales increased 24 percent to $598.4 million;
• Retail sales increased 32 percent to $306.7 million;
• Internet sales increased 28 percent to $95.9 million;
• Americas increased 19 percent to $448.0 million;
• Asia increased 34 percent to $381.8 million;
• Europe increased 34 percent to $171.2 million.

Gross profit for 2011 increased 27 percent to $536.4 million or 53.6 percent as a percentage of sales, from $423.8 million, or 53.7 percent of sales in 2010. SG&A increased 18 percent to $402.8 million versus $342.1 million a year ago. As a percentage of sales, SG&A decreased to 40.2 percent from 43.3 percent in 2010.

“The combination of strong sales growth and our ability to effectively manage costs created 310 basis points of operating expense leverage in 2011,” said McCarvel.

Balance Sheet
Cash and cash equivalents at Dec. 31, 2011 increased 77 percent to $257.6 million compared to $145.6 million at Dec. 31, 2010. Inventories at Dec. 31, 2011 were $129.6 million, up 7 percent compared to inventories at Dec. 31, 2011 of $121.2 million.

  CROCS, INC. AND SUBSIDIARIES
  CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                                     Three Months Ended             Twelve Months Ended
                                               December 31,                   December 31,
                                                    2011           2010            2011            2010
—————————————-  ———- ————– —————- ————–
                                                                   (unaudited)
        Revenues                               $ 203,713      $ 179,192      $ 1,000,903   $789,695
        Cost of sales                             103,902          92,912            464,493      364,631
        Restructuring charges                              –           (53)              –                    1,300
                                                             ——-        ——- —            ———        ——-
        Gross profit                                 99,811         86,333            536,410        423,764
        Selling, general and administrative expenses