Crocs Inc. (NASDAQ: CROX) reported today financial results for the second quarter of 2013.
Second Quarter 2013 Review
- Record revenue of $363.8 million
- Gross Margin of 55.2 percent
- Net income of $35.4 million
- Earnings per diluted share of $0.40
- Non-GAAP adjusted net income 1 per diluted share of $0.48
“Our second quarter revenue grew 12.5% on a constant currency basis and reflects the global appeal of the Crocs brand, the success of our new spring/summer collections, including the Huarache, A-Leigh, Beach Line Boat and Retro collections, combined with the ongoing strength of our core product line-up,” said John McCarvel, President and Chief Executive Officer. “Globally, our direct to consumer channel continues to be a key component of our success. Our Asia Pacific region remains a fundamental driver of our growth strategy as all channels in the region continue to exceed expectations.”
“During the quarter we strategically managed our global sales channels and balance sheet. Our direct to consumer channel performed very well, growing nearly 20% on a constant currency basis, with positive same store sales in Asia, the Americas and Europe. Wholesale revenue was higher globally, but margins in this channel, particularly in the Americas and Europe, were down due to lower than anticipated late season at-once revenue and increased discount activity late in the quarter, which negatively impacted earnings per share. Challenges during the quarter included continued weakness in consumer spending in the U.S., Europe and Japan, compounded by colder than normal temperatures during April and May in the U.S. and Europe. Our cash balance at quarter-end was $289 million, and inventory decreased to $161 million or 2.5% from December 31, 2012, as inventory turns increased to 3.8.”
Second Quarter Results
Revenue for the second quarter of 2013 increased 9.9% to $363.8 million compared with revenue of $330.9 million reported in the second quarter of 2012. On a constant currency basis revenue increased 12.5% for the second quarter of 2013.