Crocs Ongoing Q2 Revenues Climb 31%

Second quarter 2010 net income was
$32.3 million with diluted earnings per share of $0.37, compared to a
second quarter 2009 net loss of $30.3 million, or a loss per diluted
share of 36 cents a share.

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

    * Wholesale sales increased 12% to $140.0 million;
    * Retail sales increased 20% to $66.4 million; and
    * Internet sales increased 24% to $21.6 million.

Changes in the company's regional revenue streams during the same quarterly periods were as follows:

    * Americas increased 23% to $104.8 million;
    * Asia increased 11% to $88.6 million; and
    * Europe increased 7% to $34.6 million.

Gross
profit for the second quarter of 2010 increased 30% to $131.9 million,
or 57.8% as a percentage of sales, compared to $101.1 million, or 51.1%
of sales in the year ago period. Selling, General, & Administrative
expenses (including foreign exchange, restructuring, impairment, and
charitable contributions) decreased 25.8% to $93.2 million or 40.9% of
sales, versus $125.6 million, or 63.5% of sales in the second quarter of
2009.

Balance Sheet

The company's cash and cash equivalents as of June 30, 2010 increased 25%
to $96.9 million compared to $77.5 million at June 30, 2009. The Company
had no bank debt at June 30, 2010.

Inventory increased 2% to
$113.6 million at June 30, 2010 from $111.6 million at June 30, 2009,
resulting in inventory turnover of 3.5 times in the current quarter.

The
Company ended the second quarter of 2010 with accounts receivable of
$94.0 million compared to $67.1 million at June 30, 2009.

“We are
very pleased with our second quarter results, which show further
strengthening of our global wholesale and consumer direct businesses,”
commented John McCarvel, President and Chief Executive Officer. “We
believe sales are being driven by product innovation, improved service,
and brand building initiatives as well as new distribution from the
expansion of our company-operated stores and key wholesale accounts.
Importantly, our updated business model is generating enhanced
profitability and higher cash flow. We are encouraged with our recent
performance and believe we have the right strategies in place along with
the balance sheet strength to capitalize on the global opportunities
still in front of us.”

Guidance

For
the third quarter of 2010, the Company expects revenue of approximately
$205 million, a 24% increase over third quarter 2009 adjusted revenue
of $165.7 million, which excludes $11.5 million in impaired product
sales that the Company has stated would be non-recurring. On a GAAP
basis, the company expects third quarter 2010 revenue to grow
approximately 16% year-over-year.

The company expects diluted
earnings per share for the third quarter 2010 to increase to
approximately 22 cents to 24 cents versus 9 cents in third quarter 2009,
which excludes last year's one time tax benefit of 16 cents a share.