Crocs Inc. updated its guidance for the fourth quarter and full year ended December 31, 2018 in anticipation of its presentation at the 21st Annual ICR Conference.
Andrew Rees, President and Chief Executive Officer, said, “We had one of our best fourth quarters in years and as a result, have increased our revenue guidance to $211 to $214 million, well above the top end of our previous guidance of $195 to $205. These results clearly demonstrate that consumer demand for clogs and sandals is year-round. Classic and lined clogs were particular standouts, and exceptional results in North America contributed to our outperformance. We are thrilled to finish the year on such a high note and are looking forward to another successful year in 2019.”
Fourth Quarter 2018:
- The company now anticipates fourth quarter revenues of $211 to $214 million; prior guidance was $195 to $205 million.
- Revenues were $199.1 million in the fourth quarter of 2017.
- The company continues to expect gross margin to increase by 80 to 100 basis points over 45.4 percent in the fourth quarter of 2017.
- The company now expects SG&A to be approximately 54 percent of revenues compared to 60.6 percent of revenues in the fourth quarter of 2017.
Full Year 2018:
- The company now anticipates 2018 revenues to grow approximately 6 percent. This compares to our prior guidance predicting revenue growth of 4 to 5 percent over 2017 revenues of $1,023.5 million.
- The company continues to expect gross margin to increase approximately 100 basis points over the 50.5 percent rate in 2017.
- The company now expects SG&A to be approximately 46 percent of revenues compared to 48.8 percent of revenues in 2017.
- The company now expects income from operations to be over $60 million, up from our prior guidance of slightly under $60 million, and $17.3 million in 2017.
With respect to 2019 revenues, the company continues to expect a mid-single digit increase over 2018 revenues. Crocs anticipates that e-commerce and wholesale growth will more than offset lower retail revenues associated with our reduced store count, which Crocs expects to reduce revenues by approximately $25 million. Adding back that $25 million reduction, Crocs said it would expect 2019 revenues to be up mid to high single digits over our anticipated 2018 revenues.
Crocs, Inc. will be presenting at the ICR conference on Tuesday, January 15, 2019 at 2:00 pm EST.