Crocs, Inc. reported revenue for the first quarter of 2012 increased 19.9 percent to $271.8 million, over revenue of $226.7 million reported in the first quarter of 2011. Net income for the first quarter 2012 was $28.3 million, or 31 cents per diluted share, compared to net income of $21.5 million, or 24 cents per diluted share, in the first quarter of 2011.
Sales growth during the quarter was driven by Asia and Americas which was partially offset by a slight decrease in Europe. Geographically, revenue increased 17.1 percent for the Americas, increased 40.5 percent for Asia and decreased 2.7 percent for Europe.
From a channel perspective, wholesale sales increased 15.9 percent to $190.7 million, over sales of $164.6 million in the first quarter of 2011. Retail sales increased 33.2 percent to $60.6 million, over sales of $45.5 million in the first quarter of 2011. The company ended the quarter with 439 retail store locations, which compares to 371 locations a year ago. Global same store sales for the first quarter of 2012 increased 10.2 percent during the quarter on a currency neutral basis. For the full year, the company continues to expect to open 80 to 100 net store locations. Internet sales increased 23.3 percent to $20.5 million, over sales of $16.7 million in the first quarter of 2011.
John McCarvel, President and Chief Executive Officer, stated: “Crocs is off to a strong start for 2012 following our first billion-dollar sales year. Our approximate 20 percent top-line sales growth in the quarter was broad-based across channels and regions, with only European wholesale performance lagging primarily due to macroeconomic headwinds in the region. Disciplined execution of our multi-channel business strategy and our growing diversity of all-season, all-occasion footwear styles are driving this growth.”
Margins
Gross profit for the first quarter of 2012 increased 21.5 percent to $144.8 million, or 53.3 percent as a percentage of sales, from $119.2 million, or 52.6 percent as a percentage of sales in the same period last year. Selling, General, & Administrative expenses (SG&A) increased 17.5 percent to $104.1 million versus $88.6 million a year ago. As a percentage of sales, SG&A decreased to 38.3 percent from 39.1 percent in the first quarter of 2011.
Balance Sheet
Cash and cash equivalents at March 31, 2012 increased 78.9 percent to $206.6 million compared to $115.5 million at March 31, 2011. Inventories at March 31, 2012 were $169.1 million, up 9.9 percent compared to inventories at March 31, 2011 of $153.8 million.
Backlog
Backlog at March 31, 2012 increased 11 percent to $289 million compared to backlog of $260 million at March 31, 2011.
| CROCS, INC. AND SUBSIDIARIES | ||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||
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Three Months Ended | |||||||
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March 31, | |||||||
| ($ thousands, except per share data) |
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2012 |
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2011 | ||||
Revenues |
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$ |
271,798 |
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$ |
226,708 |
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Cost of sales |
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126,999 |
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|
107,502 |
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Gross profit |
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144,799 |
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119,206 |
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Selling, general and administrative expenses |
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104,136 |
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|
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88,614 |
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Restructuring charge |
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– |
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– |
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Asset impairment |
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713 |
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32 |
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Charitable contributions expense |
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154 |
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|
997 |
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Income (loss) from operations |
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39,796 |
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29,563 |
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Foreign currency transaction (gains) losses, net |
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4,276 |
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1,372 |
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Other expense (income), net |
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(572 |
) |
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271 |
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Interest expense |
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47 |
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188 |
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Gain on charitable contribution |
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(26 |
) |
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(257 |
) |
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Income (loss) before income taxes |
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36,071 |
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27,989 |
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Income tax expense (benefit) |
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7,725 |
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6,485 |
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Net income (loss) |
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$ |
28,346 |
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$ |
21,504 |
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Net income (loss) per common share: |
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Basic |
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$ |
0.32 |
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$ |
0.24 |
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Diluted |
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$ |
0.31 |
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$ |
0.24 |
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