Crocs, Inc. nearly doubled its sales in the fourth quarter ended Dec. 31, thanks to very strong international sales.
“For the eighth quarter in a row Crocs delivered industry leading revenue growth, net income growth and EPS growth,” said Ron Snyder, president and CEO. “Our more than 99% revenue gain in the fourth quarter highlights the ongoing strong demand for Crocs branded footwear. We experienced better than expected sell through of our fall line across mens, womens, and childrens in each of our markets. To meet the higher than anticipated orders over the holiday period we delivered a meaningful amount of Mammoths by air-freight, which impacted our gross margin. However, we were still able to grow diluted earnings per share by 73% in the fourth quarter. As we approach the spring and summer selling seasons, our bookings are strong compared to Dec. 31, 2006, our inventories are on plan and we believe we are well positioned to achieve our short and long-term growth objectives.”
“We are very pleased to have completed a landmark year in our companys development with record sales and profits and several important strategic advances,” continued Mr. Snyder. “2007 was highlighted by the evolution of our product line, our significant expansion overseas, key investments in our operating platform, and the growing popularity of the Crocs brand in various markets throughout the world. At the same time, we acquired and developed other businesses and diversified into additional categories which we believe will provide us with compelling new growth vehicles for the future. We move forward focused on enhancing our global position and building a stronger, more financially robust company.”
For the year ending Dec. 31, 2008, Crocs reiterated its previously issued growth targets and expects revenues of approximately $1.16 billion and net income per diluted share of approximately $2.70.
For the six-months ending June 30, 2008, the company expects revenues to increase approximately 50% over the six-month period ended June 30, 2007.
At Dec. 31, 2007, Crocs had inventories of $248.4 million compared to $195.3 as of Sept. 30, 2007. Accounts receivables were $152.9 million as of Dec. 31, 2007 compared to $160.6 million as of Sept. 30, 2007.
“Since introducing our first shoe just five years ago, we have rapidly grown our portfolio to approximately 250 different styles, extended our reach into more than 90 countries, and achieved almost $850 million in annual sales,” Mr. Snyder said. “That said, we believe that we are still in the early stages of our development and see considerable opportunity to grow our domestic business through product innovation, category expansion, and increased retail floor space.
|Consolidated Statements of Operations|
|(In thousands, except share and per share data)|
|THREE MONTHS ENDED||TWELVE MONTHS ENDED|
|December 31,||December 31,|
|Cost of sales||98,973||47,809||349,701||154,158|
|Selling, general and administrative expenses||71,926||34,879||259,882||105,224|
|Income from operations||53,901||30,216||237,767||95,346|
Other income, net
|Income before income taxes||54,692||30,718||240,326||96,626|
|Income tax expense|
|Dividends on redeemable convertible preferred shares||–||–||–||33|
|Net income attributable to common stockholders||38,284||20,785||168,228||64,384|
|Net income per share:|
|Weighted average common shares:|