Declaring that "we had one of our best fourth quarters in years," the CEO of Crocs Inc. (CROX) - Get Report said Monday the casual footwear maker was raising its fourth-quarter and full-year guidance.
Andrew Rees, president and CEO, said in a statement that the Niwot, Colorado-based company now expects fourth-quarter revenue of $211 million to $214 million, up from prior guidance of $195 million to $205 million. Revenue totaled $199.1 million in the fourth quarter of 2017.
"These results clearly demonstrate that consumer demand for clogs and sandals is year-round," Rees said in a statement. "Classic and lined clogs were particular standouts, and exceptional results in North America contributed to our outperformance. We are thrilled to finish the year on such a high note and are looking forward to another successful year in 2019."
Crocs said it still expects fourth-quarter gross margins to improve by 80 to 100 basis points over 45.4% a year ago. For the full year, it expects revenue to grow about 6%, compared with prior guidance of 4% to 5%. For 2019, it still expects revenue to grow in the mid-single digits.
"We anticipate that e-commerce and wholesale growth will more than offset lower retail revenues associated with our reduced store count," Rees said, "which we expect to reduce revenues by approximately $25 million. Adding back that $25 million reduction, we would expect 2019 revenues to be up mid to high single digits over our anticipated 2018 revenues."
Shares of Croc Inc. lost 3.5% to $29.89 at the close of trading on Monday.