Crocs, Inc. (NASDAQ: CROX) a world leader in innovative casual footwear for men, women, and children, today announced its fourth quarter and full year 2017 financial results.
Andrew Rees, President and Chief Executive Officer, said, "We had a strong final quarter of the year, which enabled us to meet or exceed our revenue and gross margin guidance for the fourth consecutive quarter. Throughout 2017, we focused on our strategic objectives: simplifying our business to reduce costs, improving the quality of our revenues, and positioning ourselves to drive sustainable, profitable growth. Looking at 2018, our Spring/Summer collection is being well received. We expect moderate wholesale and double-digit e-commerce growth to be offset by the loss of retail revenues associated with store reductions. We also anticipate delivering continued gross margin gains and completing our SG&A reduction plan. This lays the groundwork for generating top line growth in 2019 and, ultimately, delivering double-digit EBIT margins."
Fourth Quarter 2017 Operating Results:
- Revenues were $199.1 million, growing 6.2% over the fourth quarter of 2016, or 3.8% on a constant currency basis. Top line growth was achieved despite the loss of approximately $14 million due to operating fewer stores and absorbing the impact of the sales of the Taiwan and Middle East businesses. The wholesale and e-commerce businesses grew at double-digit rates and the retail business delivered positive comparable store sales.
- Gross margin was 45.4%, an increase of 340 basis points over last year's fourth quarter. This improvement was driven by continuing to prioritize high margin molded product, improving go-to-market capabilities, and better managing promotions. Favorable currency rates drove approximately 100 basis points of the improvement.
- Selling, general and administrative expenses (“SG&A”) were $120.7 million compared to $118.5 million in the fourth quarter of 2016. As a percent of revenues, SG&A improved 260 basis points. Fourth quarter 2017 results included $9.4 million of non-recurring charges. The non-recurring charges associated with our SG&A reduction plan came in at $3.1 million. In addition, $6.3 million of non-recurring charges were incurred in connection with a non-cash impairment charge and a contract termination. Fourth quarter 2016 results included $1.4 million of non-recurring charges.
- The loss from operations of $30.4 million improved by 23.7% compared to last year’s fourth quarter loss from operations of $39.8 million.
- Net loss attributable to common stockholders was $28.3 million, or $0.41 per diluted share, compared to a net loss attributable to common stockholders of $44.5 million, or $0.60 per diluted share, in last year’s fourth quarter. We had 69.5 and 73.5 million weighted average diluted common shares outstanding on December 31, 2017 and 2016, respectively.
2017 Operating Results:
- Revenues were $1,023.5 million. On a constant currency basis, revenues decreased 1.7% compared to the prior year.
- Gross margin was 50.5%, an increase of 220 basis points over the prior year.
- SG&A was $499.9 million compared to $506.3 million in the prior year. Results for 2017 included $17.0 million of non-recurring charges compared to $2.2 million in 2016.
- Income from operations was $17.3 million compared to a loss from operations of $6.2 million in 2016.
- Net loss attributable to common stockholders was $5.3 million, or $0.07 per diluted share, compared to a net loss attributable to common stockholders of $31.7 million, or $0.43 per share, in 2016. We had 72.3 and 73.4 million weighted average diluted common shares outstanding on December 31, 2017 and 2016, respectively.
Balance Sheet and Cash Flow Highlights:
- Cash provided by operating activities increased 147.2% to $98.3 million during 2017 compared to $39.8 million during 2016.
- Cash and cash equivalents as of December 31, 2017 increased 16.6% to $172.1 million compared to $147.6 million as of December 31, 2016, despite having repurchased $50.0 million of common stock during the year. This growth reflects the successful execution of the Company’s strategic objectives along with improved working capital management.
- Inventory declined 11.3% to $130.3 million as of December 31, 2017 compared to $147.0 million as of December 31, 2016, reflecting the continued focus on inventory management.
- Capital expenditures for 2017 were $13.1 million compared to $22.2 million in 2016, as the Company opened fewer stores, completed fewer store remodels, and had lower technology-related expenditures.
- At December 31, 2017, there were no borrowings outstanding on the $100 million credit facility.
Share Repurchase Activity and Increased Share Repurchase Authorization:
During the fourth quarter of 2017, the Company repurchased 2.2 million shares of its common stock for $22.9 million, at an average price of $10.22 per share. For the full year, the Company repurchased 5.7 million shares of its common stock for $50.0 million, at an average price of $8.82 per share. At year end, $69 million of the Company’s $350 million share repurchase authorization remained unexercised.
The Board of Directors recently increased the share repurchase authorization to $500 million. With this increase, $219 million remains available for future share repurchases.
Financial Outlook:
First Quarter 2018:
With respect to the first quarter of 2018, the Company expects:
- Revenues to be between $265 and $275 million compared to $267.9 million in the first quarter of 2017.
- Gross margin to be approximately 49% compared to 49.9% in the first quarter of 2017. At the beginning of the first quarter of 2018, the Company changed its inventory costing methodology from average cost to first-in-first-out, or FIFO. This change will result in timing-related charges to cost of sales in the first quarter, but has no impact on the full year. Absent these charges, the Company would expect first quarter gross margin to be up modestly to prior year.
- SG&A of approximately $115 million compared to $118.0 million last year. Both years include approximately $2 million of non-recurring charges incurred in connection with our SG&A reduction plan.
Full Year 2018:
With respect to 2018, the Company expects:
- Revenues to be relatively flat to the prior year. Revenues in 2018 will be negatively impacted by approximately $60 million compared to 2017 due to the impact of business model changes and store closures.
- Gross margin to be up approximately 70 to 100 basis points over our 2017 gross margin of 50.5%.
- SG&A is expected to be approximately $475 million. This includes approximately $5 million of non-recurring charges associated with the SG&A reduction plan and approximately $5 million of additional expense associated with changes in foreign exchange rates. This compares to $499.9 million in 2017, which included $17.0 million of non-recurring charges.
- 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 $13 million compared to $7.9 million in 2017.
Conference Call Information:
A conference call to discuss fourth quarter 2017 results is scheduled for today, Wednesday, February 28, 2018, at 8:30 a.m. EST. The call participation number is (888) 771-4371. A replay of the conference call will be available two hours after the completion of the call at (888) 843-7419. International participants can dial (847) 585-4405 to take part in the conference call, and can access a replay of the call at (630) 652-3042. All of the above calls will require the input of the conference identification number 46395592. The call will also be streamed live on the Crocs website, www.crocs.com, and that audio recording will be available at www.crocs.com through February 28, 2019.
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 revenue, gross margin, SG&A and EBIT margin 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 February 28, 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.
CROCS, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||
Revenues | $ | 199,112 | $ | 187,417 | $ | 1,023,513 | $ | 1,036,273 | ||||||||||||||||
Cost of sales | 108,745 | 108,693 | 506,292 | 536,109 | ||||||||||||||||||||
Gross profit | 90,367 | 78,724 | 517,221 | 500,164 | ||||||||||||||||||||
Selling, general and administrative expenses | 120,744 | 118,511 | 499,885 | 506,318 | ||||||||||||||||||||
Income (loss) from operations | (30,377 | ) | (39,787 | ) | 17,336 | (6,154 | ) | |||||||||||||||||
Foreign currency gain (loss), net | 382 | (886 | ) | 563 | (2,454 | ) | ||||||||||||||||||
Interest income | 294 | 135 | 870 | 692 | ||||||||||||||||||||
Interest expense | (330 | ) | (174 | ) | (869 | ) | (836 | ) | ||||||||||||||||
Other income, net | 93 | 1,645 | 280 | 1,539 | ||||||||||||||||||||
Income (loss) before income taxes | (29,938 | ) | (39,067 | ) | 18,180 | (7,213 | ) | |||||||||||||||||
Income tax (benefit) expense | (5,577 | ) | 1,577 | 7,942 | 9,281 | |||||||||||||||||||
Net income (loss) | (24,361 | ) | (40,644 | ) | 10,238 | (16,494 | ) | |||||||||||||||||
Dividends on Series A convertible preferred stock | (3,000 | ) | (3,000 | ) | (12,000 | ) | (12,000 | ) | ||||||||||||||||
Dividend equivalents on Series A convertible preferred | (911 | ) | (838 | ) | (3,532 | ) | (3,244 | ) | ||||||||||||||||
Net loss attributable to common stockholders | $ | (28,272 | ) | $ | (44,482 | ) | $ | (5,294 | ) | $ | (31,738 | ) | ||||||||||||
Net loss per common share: | ||||||||||||||||||||||||
Basic | $ | (0.41 | ) | $ | (0.60 | ) | $ | (0.07 | ) | $ | (0.43 | ) | ||||||||||||
Diluted | $ | (0.41 | ) | $ | (0.60 | ) | $ | (0.07 | ) | $ | (0.43 | ) | ||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||
Basic | 69,470 | 73,549 | 72,255 | 73,371 | ||||||||||||||||||||
Diluted | 69,470 | 73,549 | 72,255 | 73,371 | ||||||||||||||||||||
CROCS, INC. AND SUBSIDIARIES | |||||||||
December 31, | |||||||||
2017 | 2016 | ||||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 172,128 | $ | 147,565 | |||||
Accounts receivable, net of allowances of $31,389 and $48,138, respectively | 83,518 | 78,297 | |||||||
Inventories | 130,347 | 147,029 | |||||||
Income taxes receivable | 3,652 | 2,995 | |||||||
Other receivables | 10,664 | 14,642 | |||||||
Restricted cash - current | 2,144 | 2,534 | |||||||
Prepaid expenses and other assets | 22,596 | 32,413 | |||||||
Total current assets | 425,049 | 425,475 | |||||||
Property and equipment, net of accumulated depreciation and
amortization of $91,806 and | 35,032 | 44,090 | |||||||
Intangible assets, net | 56,427 | 72,700 | |||||||
Goodwill | 1,688 | 1,480 | |||||||
Deferred tax assets, net | 10,174 | 6,825 | |||||||
Restricted cash | 2,783 | 2,547 | |||||||
Other assets | 12,542 | 13,273 | |||||||
Total assets | $ | 543,695 | $ | 566,390 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 66,381 | $ | 61,927 | |||||
Accrued expenses and other liabilities | 84,446 | 78,282 | |||||||
Income taxes payable | 5,515 | 6,593 | |||||||
Current portion of borrowings and capital lease obligations | 676 | 2,338 | |||||||
Total current liabilities | 157,018 | 149,140 | |||||||
Long-term income taxes payable | 6,081 | 4,464 | |||||||
Other liabilities | 12,298 | 13,502 | |||||||
Total liabilities | 175,397 | 167,106 | |||||||
Commitments and contingencies: | |||||||||
Series A convertible preferred stock, 0.2 million shares
outstanding, liquidation preference | 182,433 | 178,901 | |||||||
Stockholders’ equity: | |||||||||
Preferred stock, par value $0.001 per share, none outstanding | — | — | |||||||
Common stock, par value $0.001 per share, 94.8 million and 93.9
million issued, 68.8 | 95 | 94 | |||||||
Treasury stock, at cost, 26.0 million and 20.3 million shares, respectively | (334,312 | ) | (284,237 | ) | |||||
Additional paid-in capital | 373,045 | 364,397 | |||||||
Retained earnings | 190,431 | 195,725 | |||||||
Accumulated other comprehensive loss | (43,394 | ) | (55,596 | ) | |||||
Total stockholders’ equity | 185,865 | 220,383 | |||||||
Total liabilities and stockholders’ equity | $ | 543,695 | $ | 566,390 | |||||
CROCS, INC. AND SUBSIDIARIES | |||||||||
Year Ended December 31, | |||||||||
2017 | 2016 | ||||||||
Cash flows from operating activities: | |||||||||
Net income (loss) | $ | 10,238 | $ | (16,494 | ) | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||
Depreciation and amortization | 33,130 | 34,043 | |||||||
Unrealized foreign currency (gain) loss, net | 1,025 | (9,027 | ) | ||||||
Share-based compensation | 9,773 | 10,736 | |||||||
Asset impairments | 5,284 | 3,144 | |||||||
(Recovery) provision for doubtful accounts, net | (589 | ) | 3,230 | ||||||
Deferred taxes | (3,093 | ) | (388 | ) | |||||
Other non-cash items | (2,406 | ) | 503 | ||||||
Changes in operating assets and liabilities: | |||||||||
Accounts receivable, net of allowances | 620 | 2,408 | |||||||
Inventories | 23,319 | 20,371 | |||||||
Prepaid expenses and other assets | 18,907 | (4,532 | ) | ||||||
Accounts payable | (2,714 | ) | (1,354 | ) | |||||
Accrued expenses and other liabilities | 5,489 | 2,884 | |||||||
Income taxes | (719 | ) | (5,770 | ) | |||||
Cash provided by operating activities | 98,264 | 39,754 | |||||||
Cash flows from investing activities: | |||||||||
Purchases of property, equipment, and software | (13,117 | ) | (22,194 | ) | |||||
Proceeds from disposal of property and equipment | 1,579 | 2,438 | |||||||
Change in restricted cash | 566 | 1,199 | |||||||
Other | — | (100 | ) | ||||||
Cash used in investing activities | (10,972 | ) | (18,657 | ) | |||||
Cash flows from financing activities: | |||||||||
Proceeds from bank borrowings | 5,500 | 31,582 | |||||||
Repayments of bank borrowings and capital lease obligations | (8,611 | ) | (35,640 | ) | |||||
Dividends—Series A preferred stock | (12,000 | ) | (12,000 | ) | |||||
Repurchases of common stock | (50,000 | ) | — | ||||||
Other | (259 | ) | (385 | ) | |||||
Cash used in financing activities | (65,370 | ) | (16,443 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | 2,641 | (430 | ) | ||||||
Net change in cash and cash equivalents | 24,563 | 4,224 | |||||||
Cash and cash equivalents—beginning of year | 147,565 | 143,341 | |||||||
Cash and cash equivalents—end of year | $ | 172,128 | $ | 147,565 | |||||
Cash paid for interest | $ | 434 | $ | 653 | |||||
Cash paid for income taxes | 13,208 | 12,344 | |||||||
CROCS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP
MEASURES TO NON-GAAP MEASURES
(UNAUDITED)
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 selling, general and administrative expenses,” which is a non-GAAP financial measure. 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. We believe they also provide a useful baseline for analyzing trends in our operations. 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 MEASURE TO NON-GAAP MEASURE | ||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
SG&A expenses reconciliation: | ||||||||||||||||||||||||||
U.S. GAAP SG&A expenses | $ | 120,744 | $ | 118,511 | $ | 499,885 | $ | 506,318 | ||||||||||||||||||
Discontinued project (1) | (6,254 | ) | — | (6,254 | ) | — | ||||||||||||||||||||
Reorganization charges (2) | (1,862 | ) | — | (5,511 | ) | (458 | ) | |||||||||||||||||||
Strategic consulting services (3) | (1,290 | ) | — | (4,361 | ) | — | ||||||||||||||||||||
Other | — | (1,361 | ) | (863 | ) | (1,715 | ) | |||||||||||||||||||
Total adjustments | (9,406 | ) | (1,361 | ) | (16,989 | ) | (2,173 | ) | ||||||||||||||||||
Non-GAAP SG&A expenses | $ | 111,338 | $ | 117,150 | $ | 482,896 | $ | 504,145 |
(1) | Represents a write-off charge and contract termination fee related to a discontinued project. | |
(2) | Represents severance and other expenses related to reorganization activities. | |
(3) | Represents operating expenses related to strategic consulting. | |
CROCS, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||
Three Months Ended | Year Ended | % Change | Constant Currency | ||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | Q4 '17-'16 | 2017-2016 | Q4 '17-'16 | 2017-2016 | ||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||
Wholesale: | |||||||||||||||||||||||||||||||
Americas | $ | 41,367 | $ | 32,046 | $ | 211,342 | $ | 202,211 | 29.1 | % | 4.5 | % | 29.2 | % | 3.8 | % | |||||||||||||||
Asia Pacific | 38,676 | 35,182 | 215,762 | 232,541 | 9.9 | % | (7.2) | % | 5.7 | % | (7.2) | % | |||||||||||||||||||
Europe | 12,755 | 13,348 | 108,142 | 110,511 | (4.4) | % | (2.1) | % | (13.1) | % | (3.8) | % | |||||||||||||||||||
Other businesses | 325 | 78 | 870 | 745 | 316.7 | % | 16.8 | % | 296.1 | % | 13.4 | % | |||||||||||||||||||
Total wholesale | 93,123 | 80,654 | 536,116 | 546,008 | 15.5 | % | (1.8) | % | 12.2 | % | (2.4) | % | |||||||||||||||||||
Retail: | |||||||||||||||||||||||||||||||
Americas | 42,558 | 41,713 | 188,367 | 191,855 | 2.0 | % | (1.8) | % | 1.9 | % | (1.9) | % | |||||||||||||||||||
Asia Pacific | 18,410 | 23,940 | 108,868 | 125,037 | (23.1) | % | (12.9) | % | (24.9) | % | (12.7) | % | |||||||||||||||||||
Europe | 8,074 | 8,013 | 40,998 | 42,712 | 0.8 | % | (4.0) | % | (7.2) | % | (8.4) | % | |||||||||||||||||||
Total retail | 69,042 | 73,666 | 338,233 | 359,604 | (6.3) | % | (5.9) | % | (7.8) | % | (6.4) | % | |||||||||||||||||||
E-commerce: | |||||||||||||||||||||||||||||||
Americas | 21,885 | 19,361 | 80,437 | 72,940 | 13.0 | % | 10.3 | % | 12.6 | % | 10.1 | % | |||||||||||||||||||
Asia Pacific | 9,553 | 9,688 | 45,036 | 37,500 | (1.4) | % | 20.1 | % | (2.9) | % | 22.8 | % | |||||||||||||||||||
Europe | 5,509 | 4,048 | 23,691 | 20,221 | 36.1 | % | 17.2 | % | 24.5 | % | 14.0 | % | |||||||||||||||||||
Total e-commerce | 36,947 | 33,097 | 149,164 | 130,661 | 11.6 | % | 14.2 | % | 9.5 | % | 14.4 | % | |||||||||||||||||||
Total revenues | $ | 199,112 | $ | 187,417 | $ | 1,023,513 | $ | 1,036,273 | 6.2 | % | (1.2) | % | 3.8 | % | (1.7) | % |
(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” on page 7 for more information. | |
CROCS, INC. AND SUBSIDIARIES | |||||||||||||||||||
September 30, | Opened | Closed/ | December 31, | ||||||||||||||||
Type: | |||||||||||||||||||
Kiosk/store-in-store | 75 | — | 4 | 71 | |||||||||||||||
Retail stores | 175 | 1 | 15 | 161 | |||||||||||||||
Outlet stores | 224 | — | 9 | 215 | |||||||||||||||
Total | 474 | 1 | 28 | 447 | |||||||||||||||
Operating segment: | |||||||||||||||||||
Americas | 179 | — | 4 | 175 | |||||||||||||||
Asia Pacific | 206 | — | 20 | 186 | |||||||||||||||
Europe | 89 | 1 | 4 | 86 | |||||||||||||||
Total | 474 | 1 | 28 | 447 | |||||||||||||||
December 31, | Opened | Closed/ | December 31, | ||||||||||||||||
Type: | |||||||||||||||||||
Kiosk/store-in-store | 98 | — | 27 | 71 | |||||||||||||||
Retail stores | 228 | 6 | 73 | 161 | |||||||||||||||
Outlet stores | 232 | 13 | 30 | 215 | |||||||||||||||
Total | 558 | 19 | 130 | 447 | |||||||||||||||
Operating segment: | |||||||||||||||||||
Americas | 190 | 2 | 17 | 175 | |||||||||||||||
Asia Pacific | 270 | 15 | 99 | 186 | |||||||||||||||
Europe | 98 | 2 | 14 | 86 | |||||||||||||||
Total | 558 | 19 | 130 | 447 | |||||||||||||||
CROCS, INC. AND SUBSIDIARIES | ||||||||||||||
COMPARABLE RETAIL STORE SALES AND DIRECT TO CONSUMER COMPARABLE STORE SALES | ||||||||||||||
(UNAUDITED) | ||||||||||||||
Constant Currency (1) | ||||||||||||||
Three Months Ended | Year Ended | |||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||
Comparable retail store sales: (2) | ||||||||||||||
Americas | 7.0 | % | (5.6) | % | 1.3 | % | (2.3) | % | ||||||
Asia Pacific | (2.9) | % | (12.1) | % | (1.9) | % | (5.9) | % | ||||||
Europe | 1.7 | % | 1.0 | % | (1.6) | % | 1.9 | % | ||||||
Global | 3.7 | % | (6.8) | % | — | % | (3.0) | % | ||||||
Constant Currency (1) | ||||||||||||||
Three Months Ended | Year Ended | |||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||
Direct to consumer comparable store sales (includes retail and e-commerce): (2) | ||||||||||||||
Americas | 8.9 | % | (8.0) | % | 3.9 | % | 0.3 | % | ||||||
Asia Pacific | (1.3) | % | (9.6) | % | 6.4 | % | (0.4) | % | ||||||
Europe | 10.5 | % | (0.4) | % | 4.1 | % | 0.2 | % | ||||||
Global | 6.2 | % | (7.7) | % | 4.7 | % | 0.1 | % |
(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 to Non-GAAP Measures” on page 7 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. | |
View source version on businesswire.com: http://www.businesswire.com/news/home/20180228005426/en/
Contacts:
Investor Contacts:
Marisa Jacobs,
303-848-7322
mjacobs@crocs.com
or
Media
Contact:
Ryan Roccaforte, 303-848-7116
rroccaforte@crocs.com