Crocs earnings shoot up more than 70%

By

Robin Driver

Published
Oct 28, 2020

Despite the difficulties posed by the ongoing Covid-19 pandemic, Broomfield, Colorado-based footwear company Crocs, Inc. announced a 73.5% increase in its third-quarter earnings on Tuesday.

 
For the third quarter ended September 30, 2020, the company reported net income of $61.9 million, up from $35.7 million in the prior-year period. Net income per diluted share increased 78.4% year over year, from $0.51 to $0.91.
 
Quarterly revenues at the company totaled $361.7 million, increasing 15.7% from $312.8 million in the same period in the previous year. Growth was led by e-commerce sales, which rose 36.3% to $80.0 million.

Wholesale revenues grew 12.4% to $164.5 million, while retail sales saw an 8.9% increase to $117.2 million. Overall, digital sales, which include sales made through Crocs’ company-owned websites, third-party marketplaces and e-tailers, rose 35.5% and accounted for 37.7% of total revenues during the quarter.
 
Direct-to-consumer comparable sales, which include revenues from both retail and e-commerce, rose 23.8%.
 
By region, Crocs’ quarterly revenues increased 27.3% on a constant currency basis in the Americas, where sales totaled $234.0 million, while Asia Pacific saw a 9.0% rise in revenues totaling $67.7 million. In the Europe, Middle East and Africa region (EMEA), the company’s revenues rose 10.7% to $60.0 million.
 
“We achieved record third-quarter revenue and EPS despite the challenges presented by the global Covid-19 pandemic,” said Crocs CEO Andrew Rees in a release. “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.”
 
Year to date, Crocs’ net income totaled $129.5 million, or $1.89 per diluted share, compared to the $99.6 million, or $1.38 per diluted share, reported by the company in the first nine months of the previous year. Revenues totaled $974.4 million in the period, up from $967.6 million.
 
Looking forward, Crocs expects to report revenue growth of between 20% and 30% in the fourth quarter, with full-year revenue growth predicted to be between 5% and 7%.