Crocs Q2 Profits Soar 72 Percent, Backlogs Up 42 Percent

Crocs, Inc.’s revenue for the second quarter increased 29.6 percent to $295.6 million from $228.0 million reported in the second quarter of 2010. Net income vaulted 71.9 percent to $55.5 million, or 61 cents per share from $32.3 million, or 37 cents, a year ago.

Crocs benefited from modifications in tax treaties in its international businesses which together with other tax planning resulted in an effective tax rate below 15 percent for the quarter.

John McCarvel, president and chief executive officer, stated: “Our second quarter results demonstrate the progress we have made evolving Crocs into an innovative footwear leader. We achieved our highest quarterly revenue and unit volume in the companys history as revenues surpassed $295 million and we sold over 14 million pair. Our performance was fueled by demand for our most diverse product line ever and included double-digit growth in each of our distribution channels and geographic regions. As a result, we experienced significant operating expense leverage and a substantial increase in profitability versus a year ago. Looking ahead to the back half of 2011, we expect our momentum to continue through summer and back to school. We are also optimistic about our prospects for the fall and holiday given the 41.9 percent increase in our backlog which totaled $168.1 million at the end of the second quarter.”

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

•     Wholesale sales increased 25.5 percent to $175.8 million;
  
•     Retail sales increased 38.1 percent to $91.8 million; and
  
•     Internet sales increased 30.1 percent to $28.1 million.

•     Asia increased 37.5 percent to $121.9 million;
  
•     Americas increased 15.9 percent to $121.4 million; and
  
•     Europe increased 50.4 percent to $52.2 million.