Crocs Inc. updated its guidance for the fourth quarter and full year ended December 31, 2017 in anticipation of its presentation at the 20th Annual ICR Conference.
Fourth Quarter 2017:
The company is increasing its previous fourth quarter revenue guidance from between $180 and $190 million to between $195 and $198 million, which approximates 5 percent growth over the prior year’s fourth quarter revenues of $187.4 million.
The company is also increasing its fourth quarter expected gross margin guidance by 200 basis points from approximately 43 percent to approximately 45 percent, which is a 300 basis point increase over the prior year’s fourth quarter gross margin.
The company now expects SG&A to be relatively flat to last year’s fourth quarter SG&A of $118.5 million. This guidance includes approximately $8 million of one-time charges, an increase of $6 million over its previous guidance. The one-time charges consist of approximately $2 million associated with its SG&A reduction plan and approximately $6 million related to an unplanned non-cash impairment charge and a related contract termination charge.
Previously, Crocs said it expected SG&A of approximately $115 million, representing a $3 million reduction to last year’s $118.5 million of SG&A in the fourth quarter.
Full Year 2017:
The company continues to expect 2017 revenues to be down low single digits compared to $1.036 billion in 2016.
The company continues to expect gross margin for 2017 to be approximately 50 percent.
The company now expects SG&A for 2017 to be approximately $498 million, which includes approximately $16 million of one-time charges. This compares to $506 million of SG&A in 2016. The one-time charges consist of $10 million associated with its SG&A reduction plan and the approximately $6 million described in its fourth quarter SG&A guidance.
20th Annual ICR Conference:
Crocs, Inc. will be presenting at the ICR conference on Monday, January 8, 2018 at 10:00 am EST.
Photo courtesy Crocs
