Crocs, Inc. a world leader in innovative casual footwear for men, women and children, today 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% over 2018 revenues of $1,088.2 million.
- Adjusted gross margin to be approximately 51%, 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%.
- SG&A to be approximately 40% of revenues.
- Adjusted operating margin to be approximately 11%, 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%.
- A tax rate of approximately 12%.
- Capital expenditures to be approximately $60 million.
With respect to 2020 revenues, the Company continues to expect 12% to 14% growth over 2019 revenues.
2020 ICR Conference:
Crocs, Inc. will be presenting at the 2020 ICR conference on Tuesday, January 14, 2020 at 11:00 am EST. The presentation will be webcast live and can be accessed on the Crocs website at http://wsw.com/webcast/icr5/crox, and will remain available through January 14, 2021. The conference is being held at the JW Marriott Grande Lakes in Orlando, Florida.