Crocs Q4 Profit Surges On Holiday Orders (Trending123 Blog)

Crocs Q4 Profit Surges On Holiday Orders; Reiterates FY08 Forecast - CROX

Crocs, Inc. (CROX), a manufacturer of consumer products from specialty resins, on Tuesday said fourth quarter profit jumped 84.1% from last year, with revenues increasing significantly from the previous year period. The company also reiterated its previously issued growth targets for 2008.

The Niwot, Colorado-based company said net income for the quarter increased to $38.3 million or $0.45 per share from $20.8 million or $0.26 per share for the same quarter last year. On average, seven analysts polled by First Call/Thomson Financial expected earnings of $0.44 per share.

The company noted that net income per share for the quarters ended December 31 2007 and 2006 are adjusted to reflect the two-for-one stock split that took effect in June 2007. Gross profit for the latest period was $125.8 million or 56.0% of revenues, compared to $65.1 million or 57.7% of revenues for the fourth quarter of 2006.

Revenues jumped to $224.8 million from $112.9 million on the ongoing strong demand for Crocs branded footwear, exceeding Street consensus estimate of $207.66 million. Domestic sales rose about 47% to $115.8 million from $78.8 million a year ago, while international sales increased 221% to $109 million from $34 million a year ago.

Selling, general and administrative expenses rose to $71.93 million from $34.88 million. Cash and cash equivalents at the end of fiscal year 2007 was $36.34 million, while it was $42.66 million last year.

Net income for 2007 increased 161.2% to $168.2 million or $2.00 per share from $64.4 million or $0.81 per share for last year. Full year revenues increased 138.9% to $847.4 million from $354.7 million for the year ended December 31, 2006. Wall Street estimated full year earnings of $1.98 per share on revenues of $831.27 million.

Commenting on the results, Ron Snyder, President and Chief Executive Officer of Crocs, said: "We experienced better than expected sell through of our fall line across men's, women's, and children's in each of our markets. To meet the higher than anticipated orders over the holiday period we delivered a meaningful amount of Mammoths by air-freight, which impacted our gross margin."

For the third quarter, the company reported net income that surged to $56.5 million or $0.66 per share from $21.5 million or $0.27 per share in the same period last year. Quarterly revenues jumped to $256.3 million from $111.3 million reported in the third quarter of last year.

Looking ahead to 2008, Crocs reiterated its previously issued growth targets and net income per share of about $2.70 and expects revenues of about $1.16 billion. Analysts expect earnings of $2.7 per share on $1.18 billion.

For the six-months ending June 30, 2008, the company expects revenues to increase nearly 50% over the six-month period ended June 30, 2007.

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