The US-based company famous for its clogs, has announced second quarter revenue and gross margin which exceeds guidance previously announced. Crocs confirmed CFO transition
“I’m very pleased with our most recent quarter. Revenues and gross margin exceeded our guidance, and our diluted earnings per share were 75% above last year’s second quarter based on the strength of our product and the growing demand for our brand. Our clogs and sandals continue to perform well, and we are well positioned for the back half of the year”, commented Andrew Rees, President and Chief Executive Officer.
Second quarter revenue totaled 328.0 million US dollars, growing by 4.7% over the second quarter of 2017, or by 2.3% on a constant currency basis. This growth was achieved despite the loss of approximately 22 million US dollars due to operating fewer stores and business model changes. E-commerce grew by 23.8%, wholesale grew by 7.2%, and retail comparable store sales increased by 7.1%.
Income from operations of 37.1 million US dollars increased 25.9% compared to 29.4 million US dollars in last year’s second quarter. Net income attributable to common stockholders was 30.4 million US dollars, or 0.35 US dollars per diluted share, compared to 18.1 million US dollars, or 0.20 US dollars per diluted share, in last year’s second quarter.
For the third quarter Under Armour expects revenue of 240 US dollars to 250 million US dollars compared to 243.3 million US dollars in the third quarter of 2017. With respect to 2018, the company now expects revenue to increase low single digits over 2017 revenues of 1 023.5 million US dollars, as double digit e-commerce growth and moderate wholesale growth is expected to more than offset lower retail revenues due to operating fewer stores and business model changes. Income from operations to be approximately 50 million US dollars compared to 17.3 million US dollars in 2017.
Chief Financial Officer transition
Carrie Teffner, Executive Vice President and Chief Financial Officer, has announced her intention to resign from Crocs effective from the 11th of April 2019 to pursue strategic board and advisory work. Anne Mehlman has been named Ms. Teffner’s successor and will assume the Executive Vice President and Chief Financial Officer role effective from the 24th of August 2018. Upon Ms. Mehlman’s arrival, and to ensure a seamless transition, Ms. Teffner will transition into the role of Executive Vice President Finance and Strategic Projects.