Crocs, Inc. saw third quarter net revenues increase 191% to $111.3 million from $38.3 million reported in the same quarter last year. Net income increased 190% to $21.5 million, or 53 cents per diluted share, from $7.4 million, or 22 cents per diluted share in the third quarter of 2005.
Gross profit for the third quarter ended September 30, 2006 was $65 million, or 58.2% of revenues, compared to $22 million, or 57.9% of revenues for the third quarter ended September 30, 2005. Gross profit for the nine months ended September 30, 2006 was $136 million, or 56.0% of revenues, compared to $43.0 million, or 57.3% of revenues for the nine months ended September 30, 2005. Selling, general and administrative expenses for the third quarter ended September 30, 2006 was $33 million, or 30% of revenues, compared to $10 million, or 26% of revenues in the same period in 2005. Selling, general and administrative expenses for the nine months ended September 30, 2006 was $70 million, or 29% of revenues, compared to $23 million, or 31% of revenues in the comparable year ago period.
“We are extremely pleased with our record third quarter performance which was once again fueled by growing demand for Crocs across the board,” commented, Ron Snyder, President and Chief Executive Officer of Crocs, Inc. “We continue to experience strong sell through of our core footwear offerings, while our new product launches, including the Mary Jane, Collegiate, and Disney, are outperforming our expectations. Internationally, the brand has increased retail traction which bodes well as we prepare to launch a full line of styles overseas next year.”
For the fourth quarter ending December 31, 2006, the company currently anticipates total revenues to be in the range of $92 to $95 million and projects its net income per diluted share to range from 40 cents to 43 cents.
For the fiscal year ending December 31, 2006, the company currently anticipates total revenues to be in the range of $334 to $337 million and projects its net income per diluted share to range from $1.50 to $1.53.
Mr. Snyder concluded, “The positive response to our entire line of footwear, both in the U.S. and abroad, gives us further confidence that our brand recognition is growing, our market share is expanding, and our products are among the most innovative and functional in the industry. While we have achieved significant sales and earnings year-to-date, we believe our prospects have never been brighter. Our entire team is energized and focused on capitalizing on the great number of compelling opportunities that we believe lie ahead.”
