Crocs, Inc.’s revenue for the first quarter ended March 31 increased 35.9 percent to $226.7 million compared to revenue of $166.9 million reported in the first quarter of 2010.

Net income for the first quarter of 2011 increased 276.1 percent to $21.5 million, or $0.24 per diluted share compared to net income of $5.7 million, or $0.07 per diluted share in the first quarter 2010.
“We were very pleased to achieve record first quarter sales along with significantly improved earnings over the year ago period,” said John McCarvel, president and CEO. “The contributions to our recent performance have been broad based and reflect the positive benefits of our multi-channel and international business model.
 
“In 2011, we have experienced solid demand for our products led by several new collections throughout each of our geographic regions,” he continued. “The collaborative efforts of our sales, marketing and merchandising teams is visible in our retail stores, at our wholesale accounts and on the internet, and is helping transform Crocs into a year round footwear brand. After a strong start to the year we head into our peak selling season with positive momentum and a clear strategy in place to capitalize on the many opportunities in front of us.”
 
Year-over year first quarter changes in the company’s channel revenue streams were as follows:
  •  Wholesale sales increased 36.9 percent to $164.6 million;
  • Retail sales increased 32.5 percent to $45.5 million;
  • Internet sales increased 35.3 percent to $16.7 million.

Year-over year first quarter changes in the company’s regional revenue streams were as follows:

  • Americas increased 35.0 percent to $100.2 million; 
  • Asia increased 32.8 percent to $72.6 million; 
  • Europe increased 42.5 percent to $53.8 million.

Gross profit for the first quarter of 2011 increased 37.5 percent to $119.2 million, or 52.6 percent as a percentage of sales, from $86.7 million, or 52.0 percent of sales in same period last year. Selling, general and administrative expenses (including foreign exchange, restructuring, impairment, and charitable contributions) increased 17.7 percent to $91.0 million versus $77.3 million a year ago. As a percentage of sales, SG&A decreased to 40.1 percent from 46.3 percent in the first quarter of 2010.

Balance Sheet

Cash and cash equivalents at March 31, 2011 increased 114.7 percent to $115.5 million compared to $53.8 million at March 31, 2010. Inventories at March 31, 2011 were $153.8 million, up from $107.2 million at March 31, 2010. The increase in inventories at March 31, 2011 was primarily attributable to the global growth in wholesale orders and the increase in company-operated retail stores. The company ended the first quarter of 2011 with accounts receivable of $123.0 million compared to $97.4 million at March 31, 2010.

 
Guidance

For the second quarter of 2011, the company expects revenue of approximately $280 million, a 23 percent increase over second quarter 2010. The company expects diluted earnings per share for the second quarter 2011 to be approximately 43 cents.

CROCS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

   
Three Months Ended
March 31,
($ thousands, except per share amounts) 2011 2010
 
Revenues $ 226,708 $ 166,852
Cost of sales   107,502     80,148  
Gross profit 119,206 86,704
Selling, general and administrative expenses 88,614 74,778
Foreign currency transaction losses (gains), net
1,315 (292 )
Restructuring charges 2,539
Asset impairment 32 141
Charitable contributions expense   997     143  
Income (loss) from operations 28,248 9,395
Interest expense 188 129
Gain on charitable contributions (257 ) (84 )
Other (income) expense   328     241  
Income (loss) before income taxes 27,989 9,109
Income tax (benefit) expense   6,485     3,392  
Net income (loss) $ 21,504   $ 5,717  
Net income (loss) per common share:
Basic $ 0.24   $ 0.07  
Diluted $ 0.24   $ 0.07