Crocs Q3 Sales Increase 130%

Crocs revenues for the third quarter increased 130% to $256.3 million compared to $111.3 million for the quarter ended September 30, 2006. Net income for the quarter ended September 30, 2007 was $56.5 million, or 66 cents per diluted share, compared to $21.5 million, or 27 cents per diluted share in 2006.

Gross profit for the third quarter of 2007 was $155.4 million, or 60.6%
of revenues, compared to $64.8 million, or 58.2% of revenues for the
third quarter of 2006. Selling, general and administrative expenses for
the quarter ended September 30, 2007 was $77.2 million, or 30.1% of
revenues, compared to $33.3 million, or 29.9% of revenues in the
quarter ended September 30, 2006.

Net income per diluted share amounts for the third quarters of 2007 and 2006 are adjusted to reflect the two-for-one stock split that took effect in June 2007.

Ron Snyder, President and Chief Executive Officer of Crocs, Inc. commented, “We continued to experience exceptionally strong global demand throughout the summer which translated into third quarter sales growth of 130% over the year ago period. At the same time, we were able to expand gross margins 240 basis points to 60.6% and increase earnings per diluted share 144% to a record $0.66. We also executed several important initiatives that have strengthened our operating platform, namely the opening of a new 320,000 square foot European distribution facility that will allow us to better support our future growth in the region. We are very pleased with all our recent accomplishments and we remain confident in our ability to fully capitalize on the many opportunities that are still ahead of us.”

Guidance

For the year ending December 31, 2007, Crocs raised its guidance. The Company now projects revenues to range from $820 to $830 million and net income per diluted common share of between $1.94 and $1.98.

The Company also introduced fiscal year 2008 guidance. Crocs currently anticipates revenues and net income per diluted share to increase between 35% to 40% over the projected 2007 levels.

Mr. Snyder concluded, “Our year-to-date performance has been marked by significant gains in sales and earnings, robust international expansion, a number of high-profile licensing agreements, and the continued build out of our global infrastructure. Even as we achieve record results and reach important objectives in our financial, strategic, and operational development we are confident that we are positioned well for continued growth in 2008. Importantly, our brand continues to reach new levels of recognition and acceptance around the world, our recent footwear introductions are resonating well with consumers, and we are beginning to leverage our market position into other categories in order to further diversify our business and create new growth vehicles for the future. Looking ahead, we are excited about both our near-term and long-term prospects, reflected in our heightened outlook for the remainder of fiscal 2007 and fiscal 2008.”