Crocs Inc. said revenues for the quarter ended March 31, 2008 increased 39.8% to $198.5 million compared to $142.0 million for the quarter ended March 31, 2007. Domestic sales grew at a much slower 11.7% to $92.6 million compared to $83.0 million for the same period a year ago, while international sales increased 79.5% to $105.9 million from $59.0 million for the quarter ended March 31, 2007.
Net loss per share and net income per diluted share for the quarters ended March 31, 2008 and 2007 are adjusted to reflect the two-for-one stock split that took effect in June 2007. Gross profit for the first quarter of 2008 was $84.2 million, or 42.4% of revenues, compared to $84.5 million, or 59.5% of revenues for the first quarter of 2007. Selling, general and administrative expenses for the quarter ended March 31, 2007 were $77.0 million, or 38.8% of revenues, compared to $47.3 million, or 33.3% of revenues in the quarter ended March 31, 2007.
“As we previously announced, our first quarter domestic sales came in below our original projections due to a combination of factors, including slower traffic at many of our retail partners and colder than normal temperatures that delayed the start to the spring selling season,” said Snyder.
For the year ending December 31, 2008, Crocs reaffirmed its previously revised outlook of revenue growth between 15% and 20% over 2007 levels with diluted earnings per share in the range of approximately $1.54 to $1.64, including the total pre-tax charges of approximately $20 million, or $0.16 per diluted share associated with the shutdown of the companys Canadian manufacturing operations. Excluding the charge, fiscal 2008 diluted earnings per share are expected to be between $1.70 and $1.80.
For the quarter ending June 30, 2008, the company reiterated that it expects revenues to increase approximately 10% to 15% over the corresponding period of 2007 with diluted earnings per share in the range of $0.42 to $0.47 including a portion of the aforementioned pre-tax charges associated with the shutdown of the companys Canadian manufacturing operations equaling approximately $4 million, or $0.03 per diluted share. Excluding this charge, the company expects second quarter 2008 diluted earnings per share in the range of $0.45 to $0.50.
| Crocs, Inc. | ||||||||
| Consolidated Statements of Operations | ||||||||
| (In thousands, except share and per share data) | ||||||||
| (unaudited) | ||||||||
| THREE MONTHS ENDED | ||||||||
| March 31, | ||||||||
| 2008 |
| 2007 | ||||||
| Revenues | $ | 198,540 |
| $ | 142,002 | |||
| Cost of sales | 113,305 | 57,517 | ||||||
| Gross profit | 85,235 | 84,485 | ||||||
Selling, general and administrative expenses | 76,977 |
| 47,327 | |||||
| Restructuring charges | 3,849 |
| – | |||||
Asset impairment charges | 10,813 |
| – | |||||
| Income (loss) from operations | (6,404 | ) | 37,158 | |||||
| Interest expense | 374 |
| 63 | |||||
| Other expense (income), net | (362 | ) | (516 | ) | ||||
| Income (loss) before income taxes | (6,416 | ) |
| 37,611 | ||||
| Income tax expense (benefit) | (1,889 | ) | 12,666 | |||||
| Net income (loss) | (4,527 | ) |
| 24,945 | ||||
| Net income (loss) per share: | ||||||||
| Basic | $ | (0.05 | ) |
| $ | 0.32 | ||
| Diluted | $ | (0.05 | ) |
| $ | 0.31 | ||
| Weighted average common shares: | ||||||||
| Basic | 82,488,601 | 79,263,962 | ||||||
| Diluted | 82,488,601 | (1) |
| 82,439,648 | ||||
(1) As the Company reported a net loss for the quarter | ||||||||
