Crocs, Inc. Reports Record Third Quarter Results

Rhea-AI Summary

On October 27, 2020, Crocs reported record third quarter revenue of $361.7 million, an increase of 15.7% year-over-year. Digital sales surged 35.5%, contributing to overall growth across all channels. Operating income rose 80.7% to $72.1 million, with operating margins expanding to 19.9%. The diluted earnings per share reached a record $0.91, up 78.4% from the previous year. Despite a 9.0% decline in Asia Pacific revenue, the overall financial outlook remains optimistic, projecting fourth quarter revenue growth of 20% to 30%.

Positive

• Record third quarter revenues of $361.7 million, up 15.7% from last year.
• Digital sales increased by 35.5%, now representing 37.7% of total revenue.
• Operating income surged 80.7% to $72.1 million with margins expanding to 19.9%.
• Diluted earnings per share set a record at $0.91, a 78.4% increase.

Negative

• Revenue in the Asia Pacific region decreased by 9.0% on a constant currency basis.

BROOMFIELD, Colo., Oct. 27, 2020 /PRNewswire/ -- Crocs, Inc. (NASDAQ: CROX), a world leader in innovative casual footwear for women, men, and children, today announced its third quarter 2020 financial results.

Andrew Rees, Chief Executive Officer, said, "We achieved record third quarter revenue and EPS despite the challenges presented by the global COVID-19 pandemic. Our extraordinary performance and strong cash flow generation demonstrates the strength of the Crocs brand and product offering globally. I am tremendously proud of how we have executed as a team and am excited for our future."

Third Quarter 2020 Highlights

• Record third quarter revenues at $361.7 million after record third quarter revenues were achieved in 2019. Revenues increased 15.7%, or 15.9% on a constant currency basis, with growth in all three channels.
• Digital sales grew 35.5% to represent 37.7% of revenue versus 32.2% last year with growth in all regions.
• Retail comparable store sales grew 16.2%.
• Operating income increased 80.7% to $72.1 million and operating margins expanded 710 basis points to 19.9%.
• Diluted earnings per share grew 78.4% to a quarterly record of $0.91.

Amounts referred to as "Adjusted" are Non-GAAP measures and include adjustments that are described under the heading "Reconciliation of GAAP Measures to Non-GAAP Measures." A reconciliation of these amounts to their GAAP counterparts are contained in the schedules below.

Third Quarter 2020 Operating Results

• Revenues were $361.7 million, an increase of 15.7% from the same period last year, or 15.9% on a constant currency basis. E-commerce revenues grew 36.3%, wholesale revenues grew 12.4%, and retail revenues increased 8.9%.
• Gross margin of 57.2% increased 480 basis points compared to 52.4% in the same period last year. Adjusted gross margin of 57.4% rose 380 basis points from the same period last year.
• SG&A expenses of $134.7 million increased from $123.9 million in the same period last year and SG&A as a percent of revenue improved by 240 basis points to 37.2%. Adjusted SG&A improved to 36.6% of revenues versus 39.4% for the same period last year.
• Income from operations increased 80.7% to $72.1 million from $39.9 million for the same period last year. Operating margin rose 710 basis points to 19.9%. Adjusted income from operations rose 69.7% to $75.4 million and adjusted operating margin was 20.8% compared to 14.2% for the same period last year.
• Diluted earnings per share increased 78.4% to a quarterly record of $0.91, as compared to $0.51 for the same period last year. Adjusted diluted earnings per share were $0.94, or 64.9% above the $0.57 for the same period last year.

Third Quarter 2020 Geographic Summary

• Americas: Revenues of $234.0 million increased 27.3% on a constant currency basis.
• Asia Pacific: Revenues of $67.7 million decreased 9.0% on a constant currency basis.
• EMEA: Revenues of $60.0 million increased 10.7% on a constant currency basis.

Third Quarter 2020 Channel Summary

• Wholesale: Revenues increased 12.4% to $164.5 million compared to $146.4 million for the same period last year.
• Retail: Revenues increased 8.9% to $117.2 million compared to $107.6 million for the same period last year.
• E-Commerce: Revenues increased 36.3% to $80.0 million compared to $58.7 million for the same period last year.
• Digital sales, which includes sales through our company-owned websites, third party marketplaces, and e-tailers, grew 35.5% to 37.7% of total revenues versus 32.2% for the same period last year.
• Direct-to-consumer comparable sales, which includes retail and e-commerce, grew 23.8% versus 15.9% for the same period last year.

Balance Sheet and Cash Flow

• Cash and cash equivalents were $123.6 million as of September 30, 2020, compared to $108.3 million as of December 31, 2019.
• Inventories increased to $174.1 million as of September 30, 2020, compared to $172.0 million as of December 31, 2019 and $139.8 million as of September 30, 2019 as in-transit inventories were up approximately $20 million from the same period last year.
• Capital expenditures during the nine months ended September 30, 2020 were $33.2 million, relatively flat to the same period last year.
• Borrowings at September 30, 2020 were $135.0 million after repaying $140.0 million in debt during the third quarter. Our liquidity position remains strong with $364.4 million in available borrowing capacity.

Stock Repurchase Activity

We have a track record of investing to fuel growth and returning capital to shareholders. During the third quarter of 2020, we did not repurchase any shares. Earlier in the year we temporarily suspended the share repurchase program to maximize liquidity and flexibility during the COVID-19 pandemic. As of September 30, 2020, we repurchased $39.2 million of shares this year and approximately $469 million in capacity remains under the share repurchase authorization.

Financial Outlook

In these unprecedented times, we will continue to provide forward visibility when appropriate. Excluding the potential impact of any future COVID-related shutdowns in major markets, we expect:

• Revenues: Fourth quarter revenue to grow between 20% and 30% compared to 2019. This translates into full year 2020 revenue growth of approximately 5% to 7%.
• Tax rate: A 2020 tax rate of approximately 11% as we project to utilize deferred tax assets that were previously subject to a valuation allowance.
• Capital expenditures: Approximately $50 million of capital expenditures for 2020, which reflects investment to support future growth.

Conference Call Information

A conference call to discuss third quarter 2020 results is scheduled for today, Tuesday, October 27, 2020, at 8:30 am ET. To receive conference call details, please register at the Investor Relations section of the Crocs website, investors.crocs.com. The webcast will also be available live and on replay through October 27, 2021 at this site.

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. The vast majority of shoes within Crocs' collection contains Croslite™ material, a proprietary, molded footwear technology, delivering extraordinary comfort with each step.

In 2020, Crocs declares that expressing yourself and being comfortable are not mutually exclusive. To learn more about Crocs or our global Come As You Are™ campaign, please visit www.crocs.com or follow @Crocs on Facebook, Instagram, and Twitter.

Forward Looking Statements

This press release includes estimates, projections, and statements relating to our business plans, objectives, and expected operating results that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements regarding potential impacts to our business related to the COVID-19 pandemic, our financial condition, brand and liquidity outlook, and expectations regarding our 2020 revenue, tax rate, capital expenditures, and cash flow. 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: the COVID-19 pandemic and related government, private sector, and individual consumer responsive actions; current global financial conditions, including economic impacts resulting from the COVID-19 pandemic; 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 speak only as of the date of this press release. We do not undertake any obligation to update publicly any forward-looking statements.

Category:Investors

 

CROCS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share data)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2020				2019				2020				2019
Revenues	$	361,736			$	312,766			$	974,445			$	967,614
Cost of sales	154,967				148,942				453,581				476,796
Gross profit	206,769				163,824				520,864				490,818
Selling, general and administrative expenses	134,683				123,940				371,371				370,525
Income from operations	72,086				39,884				149,493				120,293
Foreign currency gains (losses), net	(516)				585				(1,434)				(893)
Interest income	43				167				189				493
Interest expense	(1,502)				(2,505)				(5,593)				(6,743)
Other income (expense), net	(27)				(34)				901				(48)
Income before income taxes	70,084				38,097				143,556				113,102
Income tax expense	8,195				2,421				14,025				13,518
Net income	$	61,889			$	35,676			$	129,531			$	99,584
Net income per common share:
Basic	$	0.92			$	0.52			$	1.92			$	1.40
Diluted	$	0.91			$	0.51			$	1.89			$	1.38
Weighted average common shares outstanding:
Basic	67,473				69,097				67,606				71,003
Diluted	68,385				70,176				68,608				72,342

 

 

CROCS, INC. AND SUBSIDIARIES EARNINGS PER SHARE (UNAUDITED) (in thousands, except per share data)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2020				2019				2020				2019
Numerator:
Net income	$	61,889			$	35,676			$	129,531			$	99,584
Denominator:
Weighted average common shares outstanding - basic	67,473				69,097				67,606				71,003
Plus: Dilutive effect of stock options and unvested restricted stock units	912				1,079				1,002				1,339
Weighted average common shares outstanding - diluted	68,385				70,176				68,608				72,342
Net income per common share:
Basic	$	0.92			$	0.52			$	1.92			$	1.40
Diluted	$	0.91			$	0.51			$	1.89			$	1.38

 

 

CROCS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share and par value amounts)
	September 30, 2020				December 31, 2019
ASSETS
Current assets:
Cash and cash equivalents	$	123,562			$	108,253
Accounts receivable, net of allowances of $21,206 and $18,797, respectively	139,474				108,199
Inventories	174,119				172,028
Income taxes receivable	8,426				1,341
Other receivables	9,593				8,711
Restricted cash - current	1,565				1,500
Prepaid expenses and other assets	15,570				25,350
Total current assets	472,309				425,382
Property and equipment, net of accumulated depreciation and amortization of $86,252 and $79,604, respectively	56,321				47,405
Intangible assets, net of accumulated amortization of $94,627 and $82,760, respectively	40,147				47,095
Goodwill	1,649				1,578
Deferred tax assets, net	23,273				24,747
Restricted cash	1,810				2,292
Right-of-use assets	197,402				182,228
Other assets	9,134				8,075
Total assets	$	802,045			$	738,802
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	119,108			$	95,754
Accrued expenses and other liabilities	100,294				108,677
Income taxes payable	9,467				4,207
Current operating lease liabilities	49,741				48,585
Total current liabilities	278,610				257,223
Long-term income taxes payable	5,098				4,522
Long-term borrowings	135,000				205,000
Long-term operating lease liabilities	155,349				140,148
Other liabilities	1				4
Total liabilities	574,058				606,897
Commitments and contingencies
Stockholders' equity:
Preferred stock, par value $0.001 per share, 5.0 million shares authorized including 1.0 million authorized as Series A Convertible Preferred Stock, none outstanding	—				—
Common stock, par value $0.001 per share, 250.0 million shares authorized, 105.0 million and 104.0 million issued, 67.5 million and 68.2 million outstanding, respectively	105				104
Treasury stock, at cost, 37.5 million and 35.8 million shares, respectively	(587,983)				(546,208)
Additional paid-in capital	508,055				495,903
Retained earnings	370,016				240,485
Accumulated other comprehensive loss	(62,206)				(58,379)
Total stockholders' equity	227,987				131,905
Total liabilities and stockholders' equity	$	802,045			$	738,802

 

 

CROCS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands)
	Nine Months Ended September 30,
	2020				2019
Cash flows from operating activities:
Net income	$	129,531			$	99,584
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	20,251				17,508
Operating lease cost	45,818				44,776
Inventory donations	8,873				23
Provision for doubtful accounts, net	5,720				2,132
Share-based compensation	10,809				11,020
Other non-cash items	3,632				(2,843)
Changes in operating assets and liabilities:
Accounts receivable	(38,937)				(30,619)
Inventories	(14,873)				(17,178)
Prepaid expenses and other assets	7,706				(3,501)
Accounts payable, accrued expenses and other liabilities	25,243				1,955
Operating lease liabilities	(45,133)				(49,668)
Cash provided by operating activities	158,640				73,189
Cash flows from investing activities:
Purchases of property, equipment, and software	(33,193)				(32,852)
Proceeds from disposal of property and equipment	434				302
Other	(168)				—
Cash used in investing activities	(32,927)				(32,550)
Cash flows from financing activities:
Proceeds from bank borrowings	150,000				310,000
Repayments of bank borrowings	(220,000)				(245,000)
Dividends—Series A convertible preferred stock (1)	—				(2,985)
Repurchases of common stock	(39,159)				(133,475)
Other	(1,792)				(3,275)
Cash used in financing activities	(110,951)				(74,735)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	130				(2,299)
Net change in cash, cash equivalents, and restricted cash	14,892				(36,395)
Cash, cash equivalents, and restricted cash—beginning of period	112,045				127,530
Cash, cash equivalents, and restricted cash—end of period	$	126,937			$	91,135
(1)  For the nine months ended September 30, 2019, represents $3.0 million paid to induce conversion of Series A Convertible Preferred Stock        to common stock.

 

CROCS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

In addition to financial measures presented on the basis of accounting principles generally accepted in the United States of America ("GAAP"), we present "Non-GAAP cost of sales," "Non-GAAP gross profit," "Non-GAAP gross margin," "Non-GAAP selling, general, and administrative expenses," "Non-GAAP net income," "Non-GAAP income from operations",  "Non-GAAP operating margin," "Non-GAAP weighted average common shares outstanding - basic and diluted," and "Non-GAAP basic and diluted net income per common share," which are non-GAAP financial measures. Non-GAAP results exclude the impact of items that management believes affect the comparability or underlying business trends in our condensed consolidated financial statements in the periods presented.

We also present certain information related to our current period results of operations through "constant currency," which is a non-GAAP financial measure and should be viewed as a supplement to our results of operations and presentation of reportable segments under GAAP. Constant currency represents current period results that have been retranslated using exchange rates used in the prior year comparative period to enhance the visibility of the underlying business trends excluding the impact of foreign currency exchange rate fluctuations.

Management uses non-GAAP results to assist in comparing business trends from period to period on a consistent basis in communications with the board of directors, stockholders, analysts, and investors concerning our financial performance. We believe that these non-GAAP measures are useful to investors and other users of our condensed consolidated financial statements as an additional tool for evaluating operating performance and trends. For the three and nine months ended September 30, 2020, management believes it is helpful to evaluate our results excluding the impacts of various adjustments relating to special or non-recurring items. Investors should not consider these non-GAAP measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

 

CROCS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (UNAUDITED)
Non-GAAP cost of sales, gross profit, and gross margin reconciliation:
	Three Months Ended September 30,								Nine Months Ended September 30,
	2020				2019				2020				2019
	(in thousands)
GAAP revenues	$	361,736			$	312,766			$	974,445			$	967,614
GAAP cost of sales	$	154,967			$	148,942			$	453,581			$	476,796
New distribution centers (1)	(897)				(3,678)				(2,636)				(7,981)
COVID-19 inventory write-off (2)	—				—				(2,396)				—
Other	(119)				(42)				(119)				(175)
Total adjustments	(1,016)				(3,720)				(5,151)				(8,156)
Non-GAAP cost of sales	$	153,951			$	145,222			$	448,430			$	468,640
GAAP gross profit	$	206,769			$	163,824			$	520,864			$	490,818
GAAP gross margin	57.2		%		52.4		%		53.5%				50.7		%
Non-GAAP gross profit	$	207,785			$	167,544			$	526,015			$	498,974
Non-GAAP gross margin	57.4		%		53.6		%		54.0%				51.6		%
(1)  Represents expenses, including expansion costs, related to our distribution centers in Dayton, Ohio and Dordrecht, the Netherlands.
(2)  Represents an inventory write-off in our Asia Pacific segment associated with the impact of COVID-19.

 

 

Non-GAAP selling, general and administrative expenses reconciliation:
	Three Months Ended September 30,								Nine Months Ended September 30,
	2020				2019				2020				2019
	(in thousands)
GAAP revenues	$	361,736			$	312,766			$	974,445			$	967,614
GAAP selling, general and administrative expenses	$	134,683			$	123,940			$	371,371			$	370,525
Donations of inventory	(50)				—				(9,970)				—
COVID-19 severance costs	—				—				(2,403)
COVID-19 impact of bad debt expense (1)	48				—				(4,433)				—
Other COVID-19 costs (2)	(183)				—				(827)				—
Duplicate headquarters rent (3)	(426)				—				(1,120)				—
Non-recurring expenses associated with cost reduction initiatives in 2019	—				(809)				—				(1,698)
Other (4)	(1,652)				—				(2,133)				—
Total adjustments	(2,263)				(809)				(20,886)				(1,698)
Non-GAAP selling, general and administrative expenses (5)	$	132,420			$	123,131			$	350,485			$	368,827
GAAP selling, general and administrative expenses as a percent of revenues	37.2		%		39.6		%		38.1		%		38.3		%
Non-GAAP selling, general and administrative expenses as a percent of revenues	36.6		%		39.4		%		36.0		%		38.1		%
(1)  Represents bad debt expense associated with the impact of COVID-19 on wholesale partners in our Asia Pacific and Americas segments.
(2)  Represents costs incurred in response to the COVID-19, including hazard pay, cleaning costs, and legal costs.
(3)  Represents ongoing duplicate rent costs associated with our move to our new headquarters in Broomfield, Colorado, while we conclude the lease for our former headquarters in Niwot, Colorado.
(4)  Represents non-recoverable duties, non-recurring costs related to the closure of company-owned retail stores in Australia, employee severance costs, and various other immaterial items.
(5)  Non-GAAP selling, general and administrative expenses are presented gross of tax.

 

 

Non-GAAP income from operations and operating margin reconciliation:
	Three Months Ended September 30,								Nine Months Ended September 30,
	2020				2019				2020				2019
	(in thousands)
GAAP revenues	$	361,736			$	312,766			$	974,445			$	967,614
GAAP income from operations	$	72,086			$	39,884			$	149,493			$	120,293
Non-GAAP cost of sales adjustments (1)	1,016				3,720				5,151				8,156
Non-GAAP selling, general and administrative expenses adjustments (2)	2,263				809				20,886				1,698
Non-GAAP income from operations	$	75,365			$	44,413			$	175,530			$	130,147
GAAP operating margin	19.9		%		12.8		%		15.3		%		12.4		%
Non-GAAP operating margin	20.8		%		14.2		%		18.0		%		13.5		%
(1)  See 'Non-GAAP cost of sales, gross profit, and gross margin reconciliation' above for more details.
(2)  See 'Non-GAAP selling, general and administrative expenses reconciliation' above for more details.

 

 

Non-GAAP earnings per share reconciliation:
	Three Months Ended September 30,								Nine Months Ended September 30,
	2020				2019				2020				2019
	(in thousands, except per share data)
Numerator:
GAAP net income	$	61,889			$	35,676			$	129,531			$	99,584
Non-GAAP cost of sales adjustments (1)	1,016				3,720				5,151				8,156
Non-GAAP selling, general and administrative expenses adjustments (2)	2,263				809				20,886				1,698
Non-GAAP other income adjustment (3)	—				—				(919)				—
Tax effect of non-GAAP adjustments (4)	(649)				—				(6,109)				—
Non-GAAP net income	$	64,519			$	40,205			$	148,540			$	109,438
Denominator:
GAAP weighted average common shares outstanding - basic	67,473				69,097				67,606				71,003
Plus: GAAP dilutive effect of stock options and unvested restricted stock units	912				1,079				1,002				1,339
GAAP weighted average common shares outstanding - diluted	68,385				70,176				68,608				72,342
GAAP net income per common share:
Basic	$	0.92			$	0.52			$	1.92			$	1.40
Diluted	$	0.91			$	0.51			$	1.89			$	1.38
Non-GAAP net income per common share:
Basic	$	0.96			$	0.58			$	2.20			$	1.54
Diluted	$	0.94			$	0.57			$	2.17			$	1.51
(1)  See 'Non-GAAP cost of sales, gross profit, and gross margin reconciliation' above for more information.
(2)  See 'Non-GAAP selling, general and administrative expenses reconciliation' above for more information.
(3) Represents a fair value adjustment associated with our donations of inventory.
(4) In the three months and nine months ended September 30, 2019, non-GAAP adjustments were in jurisdictions subject to a full valuation allowance, and thus had no material net tax impact.

 

 

CROCS, INC. AND SUBSIDIARIES REVENUES BY SEGMENT (UNAUDITED)
	Three Months Ended September 30,								Nine Months Ended September 30,								% Change						Constant Currency % Change (1)
	2020				2019				2020				2019				Q3 2020-2019			YTD 2020-2019			Q3 2020-2019			YTD 2020-2019
	(in thousands)
Americas:
Wholesale	$	98,025			$	75,660			$	256,258			$	216,846			29.6	%		18.2	%		31.8	%		19.8	%
Retail	89,748				78,141				158,587				182,116				14.9	%		(12.9)	%		14.9	%		(12.9)	%
E-commerce	46,274				31,391				138,510				85,796				47.4	%		61.4	%		47.5	%		61.6	%
Total Americas	234,047				185,192				553,355				484,758				26.4	%		14.2	%		27.3	%		15.0	%
Asia Pacific:
Wholesale	28,842				36,655				109,705				169,468				(21.3)	%		(35.3)	%		(21.1)	%		(33.9)	%
Retail	19,652				20,133				51,643				60,901				(2.4)	%		(15.2)	%		(2.7)	%		(13.3)	%
E-commerce	19,210				17,463				65,388				53,353				10.0	%		22.6	%		9.2	%		24.4	%
Total Asia Pacific	67,704				74,251				226,736				283,722				(8.8)	%		(20.1)	%		(9.0)	%		(18.5)	%
EMEA
Wholesale	37,630				34,058				136,507				144,685				10.5	%		(5.7)	%		8.3	%		(3.9)	%
Retail	7,789				9,347				15,970				25,453				(16.7)	%		(37.3)	%		(15.1)	%		(35.9)	%
E-commerce	14,552				9,869				41,771				28,821				47.5	%		44.9	%		43.3	%		46.4	%
Total EMEA	59,971				53,274				194,248				198,959				12.6	%		(2.4)	%		10.7	%		(0.7)	%
Total segment revenues	361,722				312,717				974,339				967,439				15.7	%		0.7	%		15.9	%		1.9	%
Other businesses	14				49				106				175				(71.4)	%		(39.4)	%		(71.4)	%		(39.4)	%
Total consolidated revenues	$	361,736			$	312,766			$	974,445			$	967,614			15.7	%		0.7	%		15.9	%		1.9	%
Total wholesale	$	164,511			$	146,422			$	502,576			$	531,174			12.4	%		(5.4)	%		13.1	%		(3.8)	%
Total retail	117,189				107,621				226,200				268,470				8.9	%		(15.7)	%		9.0	%		(15.1)	%
Total e-commerce	80,036				58,723				245,669				167,970				36.3	%		46.3	%		35.4	%		47.3	%
Total consolidated revenues	$	361,736			$	312,766			$	974,445			$	967,614			15.7	%		0.7	%		15.9	%		1.9	%
(1) Reflects year over year change as if the current period results were in constant currency, which is a non-GAAP financial measure. See 'Reconciliation of       GAAP Measures to Non-GAAP Measures' above for more information.

 

 

CROCS, INC. AND SUBSIDIARIES RETAIL STORE COUNTS (UNAUDITED)
		June 30, 2020			Opened			Closed			September 30, 2020
Type:
Outlet stores		191			—			5			186
Retail stores		104			—			4			100
Kiosk/store in store		65			—			—			65
Total		360			—			9			351
Operating segment:
Americas		165			—			—			165
Asia Pacific		142			—			6			136
EMEA		53			—			3			50
Total		360			—			9			351
		December 31, 2019			Opened			Closed/Transferred			September 30, 2020
Type:
Outlet stores		193			5			12			186
Retail stores		109			3			12			100
Kiosk/store-in-store		65			1			1			65
Total		367			9			25			351
Operating segment:
Americas		165			2			2			165
Asia Pacific		145			5			14			136
EMEA		57			2			9			50
Total		367			9			25			351

 

 

CROCS, INC. AND SUBSIDIARIES DIGITAL SALES PERCENTAGE, COMPARABLE RETAIL STORE SALES, AND DIRECT-TO-CONSUMER COMPARABLE SALES (UNAUDITED)
Digital sales, which includes sales through our company-owned website, third party marketplaces, and e-tailers, as a percent of total revenues, by operating segment were:
	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Digital sales as a percent of total revenues:
Americas	30.8	%		26.9	%		38.9	%		28.0	%
Asia Pacific	42.3	%		32.9	%		39.0	%		27.6	%
EMEA	59.8	%		49.6	%		53.5	%		39.6	%
Global	37.7	%		32.2	%		41.8	%		30.3	%
Comparable retail store sales and direct-to-consumer store sales by operating segment are shown below.
	Constant Currency (1)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Comparable retail store sales: (2)
Americas	22.3	%		19.1	%		21.8	%		17.1	%
Asia Pacific	2.8	%		(4.2)	%		(0.8)	%		(1.2)	%
EMEA	(4.7)	%		2.4	%		(5.6)	%		6.3	%
Global	16.2	%		12.5	%		13.0	%		11.4	%
	Constant Currency (1)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Direct-to-consumer comparable sales (includes retail and e-commerce): (2)
Americas	30.7	%		18.5	%		40.1	%		18.6	%
Asia Pacific	5.2	%		11.7	%		10.9	%		5.6	%
EMEA	22.9	%		9.5	%		28.7	%		13.8	%
Global	23.8	%		15.9	%		29.8	%		14.4	%
(1)  Reflects period over period change as if the current period results were in constant currency, which is a non-GAAP financial measure. See 'Reconciliation of GAAP        Measures to Non-GAAP Measures' above for more information.
(2)  Comparable store status is determined on a monthly basis. Comparable store sales include the revenues of stores that have been in operation for more than twelve        months. Stores in which selling square footage has changed more than 15% as a result of a remodel, expansion, or reduction are excluded until the thirteenth month        in which they have comparable prior year sales. Temporarily closed stores are excluded from the comparable store sales calculation during the month of closure.        Location closures in excess of three months are excluded until the thirteenth month post re-opening. E-commerce revenues are based on same site sales period        over period.

 

	Investor Contact:	Cori Lin, Crocs, Inc.
		(303) 848-5053
		clin@crocs.com
	PR Contact:	Melissa Layton, Crocs, Inc.
		(303) 848-7885
		mlayton@crocs.com

 

 

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SOURCE Crocs, Inc.

FAQ

What were Crocs' third quarter 2020 financial results?

Crocs reported third quarter 2020 revenues of $361.7 million, a 15.7% increase from the previous year.

How did digital sales perform for Crocs in Q3 2020?

Digital sales grew 35.5%, contributing 37.7% to total revenues.

What is the diluted earnings per share for Crocs in Q3 2020?

The diluted earnings per share reached a record $0.91, up 78.4% year-over-year.

What is Crocs' revenue outlook for Q4 2020?

Crocs expects fourth quarter revenue to grow between 20% and 30% compared to 2019.

How did Crocs' operating income change in Q3 2020?

Operating income increased by 80.7% to $72.1 million.