Crocs Inc. raised its revenue guidance for the fourth quarter ended December 31, 2019, in anticipation of its presentation at the 2020 ICR Conference.
“We delivered the strongest fourth quarter in Crocs’ history,” said Andrew Rees, president and chief executive officer. “Our positive brand momentum allowed us to deliver strong DTC growth combined with excellent wholesale sell-through. Our projected fourth-quarter results represent a strong finish to a record year, and we anticipate building on our 2019 growth trajectory in 2020.”
For the fourth quarter of 2019, the company now expects revenue to be between $260 and $262 million, up from its previous guidance range of $245 to $255 million and compared to $216.0 million in the fourth quarter of 2018.
With respect to 2019, the company expects:
- Revenues to grow approximately 13 percent over 2018 revenues of $1,088.2 million.
- Adjusted gross margin to be approximately 51 percent, excluding non-recurring charges of approximately 100 basis points associated with the company’s new U.S. distribution center. On a GAAP basis, gross margin is expected to be approximately 50 percent.
- SG&A to be approximately 40 percent of revenues.
- Adjusted operating margin to be approximately 11 percent, excluding non-recurring charges of approximately 100 basis points associated with the company’s new U.S. distribution center and certain SG&A costs.
- On a GAAP basis, operating margin is expected to be approximately 10 percent. A tax rate of approximately 12 percent.
- Capital expenditures to be approximately $60 million.
With respect to 2020 revenues, the company continues to expect 12 percent to 14 percent growth over 2019 revenues.
Crocs, Inc. will be presenting at the 2020 ICR conference on Tuesday, January 14, 2020, at 11:00 am Eastern Standard Time.