Crocs, Inc. Reaffirms Third Quarter & 2018 Guidance; Announces Participation in the Goldman Sachs 25th Annual Global Retailin...
August 30 2018 - 4:05PM
Business Wire
Crocs, Inc. (NASDAQ: CROX), a world leader in innovative casual
footwear for men, women and children, today reiterated its guidance
for the third quarter and full year ended December 31, 2018 in
anticipation of its presentation at the Goldman Sachs 25th Annual
Global Retailing Conference.
Andrew Rees, President and Chief Executive Officer, said, “It’s
been a good summer, and the momentum we saw throughout June and
July has continued as back to school shopping escalated. Our clogs
and sandals, in particular, continue to be in demand. We are well
positioned for the balance of the year, and are reiterating our
previously issued third quarter and full year 2018 guidance.”
Third Quarter 2018:
With respect to the third quarter of 2018, the Company continues
to expect:
- Revenues of $240 to $250 million
compared to $243.3 million in the third quarter of 2017.
- Gross margin to be approximately 50
basis points above last year’s 50.8% rate.
- SG&A to be slightly higher than
last year’s third quarter SG&A of $120.8 million. This includes
non-recurring charges of approximately $6 million, compared to $3.6
million in the third quarter of 2017. These non-recurring charges
consist of approximately $5 million relating to the closure of our
manufacturing facilities, approximately $4 million of which will be
non-cash, and approximately $1 million associated with our SG&A
reduction plan.
Full Year 2018:
With respect to 2018, the Company continues to expect:
- Revenues to increase low single digits
over 2017 revenues of $1,023.5 million, as we expect double digit
e-commerce growth and moderate wholesale growth to more than offset
lower retail revenues due to operating fewer stores and business
model changes.
- Gross margin to increase approximately
70 to 100 basis points over 2017 gross margin of 50.5%.
- SG&A to be slightly higher than our
prior guidance of $485 million, compared to $499.9 million last
year. This includes approximately $18 million of non-recurring
charges, compared to our prior guidance of approximately $15
million, and $17 million of non-recurring charges in 2017. These
non-recurring charges consist of approximately $14 million relating
to the closure of our manufacturing facilities, approximately $8
million of which will be non-cash, and approximately $4 million
associated with our SG&A reduction plan.
- Income from operations to be
approximately $50 million compared to $17.3 million in 2017.
- Depreciation and amortization to be
approximately $30 million compared to $33.1 million in 2017.
- Income tax expense of approximately $17
million compared to $7.9 million in 2017.
Goldman Sachs 25th Annual Global Retailing Conference
Crocs, Inc. will be presenting at the Goldman Sachs 25th Annual
Global Retailing Conference on Wednesday, September 5, 2018 at
11:15 am EST. The presentation will be webcast live and can be
accessed on the Crocs website, www.crocs.com, and will remain
available through March 5, 2019. The conference is being held at
the Plaza Hotel in New York, New York.
About Crocs, Inc.:
Crocs, Inc. (Nasdaq: CROX) is a world leader in innovative
casual footwear for women, men, and children, combining comfort and
style with a value that consumers know and love. Every pair of
shoes within Crocs’ collection contains Croslite™ material, a
proprietary, molded footwear technology, delivering extraordinary
comfort with each step.
In 2018, Crocs reinforces its mission of “everyone comfortable
in their own shoes” with the second year of its global Come As You
Are™ campaign. To learn more about Crocs or Come As You
Are, please visit www.crocs.com or follow @Crocs on
Facebook, Instagram and Twitter.
Forward Looking Statements:
This news release includes “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements include, but are not limited to, statements
regarding prospects, expectations and our revenues, gross margin,
and SG&A, income from operations, depreciation and amortization
and income tax expense outlook. These statements involve known and
unknown risks, uncertainties and other factors, which may
cause our actual results, performance or achievements to be
materially different from any future results, performances, or
achievements expressed or implied by the forward-looking
statements. These risks and uncertainties include, but are not
limited to, the following: current global financial conditions; the
effect of competition in our industry; our ability to effectively
manage our future growth or declines in revenues; changing consumer
preferences; our ability to maintain and expand revenues and gross
margin; our ability to accurately forecast consumer demand for our
products; our ability to successfully implement our strategic
plans; our ability to develop and sell new products; our ability to
obtain and protect intellectual property rights; the effect of
potential adverse currency exchange rate fluctuations and other
international operating risks; and other factors described in our
most recent Annual Report on Form 10-K under the heading “Risk
Factors” and our subsequent filings with the Securities and
Exchange Commission. Readers are encouraged to review that section
and all other disclosures appearing in our filings with the
Securities and Exchange Commission.
All information in this document speaks as of August 30, 2018.
We do not undertake any obligation to update publicly any
forward-looking statements, including, without limitation, any
estimate regarding revenues, margins, or SG&A, whether as a
result of the receipt of new information, future events, or
otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20180830005658/en/
Investors:Crocs, Inc.Marisa Jacobs,
303-848-7322mjacobs@crocs.comandICRBrendon Frey,
203-682-8200brendon.frey@icrinc.comorMedia:Crocs, Inc.Ryan
Roccaforte, 303-848-7116rroccaforte@crocs.com
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