Crocs Inc. is on the right track powered by resiliency of their brand and skyrocketing e-commerce gains. Crocs Inc. became one of the rare industry players to deliver strong earnings gains in the pandemic-sidetracked second quarter.
Crocs, Inc. (NASDAQ: CROX) stock price is up 500% since March lows, but ended half percent down on Monday.
Andrew Rees, president and 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.
Crocs’ 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.