Crocs, Inc. Reaffirms Third Quarter and 2018 Guidance; Announces Participation in the Goldman Sachs 25th Annual Global Retailing Conference
Aug. 30, 2018
NIWOT, Colo.--(BUSINESS WIRE)--Aug 30, 2018--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 25 th 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 25 th 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.
View source version on businesswire.com:https://www.businesswire.com/news/home/20180830005658/en/
Marisa Jacobs, 303-848-7322
Brendon Frey, 203-682-8200
Ryan Roccaforte, 303-848-7116
KEYWORD: UNITED STATES NORTH AMERICA COLORADO
INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE RETAIL FASHION SPECIALTY
SOURCE: Crocs, Inc.
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PUB: 08/30/2018 04:05 PM/DISC: 08/30/2018 04:05 PM