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Crocs, Inc. Reports Second Quarter 2017 Results

NIWOT, Colo., Aug. 09, 2017 (GLOBE NEWSWIRE) -- Crocs, Inc. (CROX) a world leader in innovative casual footwear for men, women and children, today announced its financial results for the second quarter of 2017. These results cover the three months ended June 30, 2017, and are compared to the three months ended June 30, 2016.

Andrew Rees, President and Chief Executive Officer, said, “During the second quarter, we continued to revitalize the Crocs brand and drive improvement in the quality of our revenues. A favorable response to our Spring/Summer 2017 collection, particularly as it relates to clogs and sandals, drove solid growth in these silhouettes. A focus on our core molded products and effective inventory management enabled us to deliver gross margins which exceeded guidance, while our intense focus on expense management kept SG&A below projected levels. We are optimistic about the early response to our Fall/Holiday 2017 collection, and anticipate that the positive sentiment seen to date will continue throughout the second half of the year, despite the challenging retail environment."

Second Quarter 2017 Operating Results:

  • Revenues, at the high end of our guidance, came in at $313.2 million. On a constant currency basis, revenues decreased 2.7%, compared to the second quarter of 2016. We continued to execute against plans to improve the quality of our revenues and strengthen our brand.

  • Second quarter gross margin rose 180 basis points to 54.2% compared to last year’s second quarter. Improved product and better management of inventory enabled us to generate higher quality revenues. We also benefited from the continued shift toward more molded product.

  • Selling, general and administrative expenses ("SG&A") were $140.4 million compared to $149.0 million in the second quarter of 2016, a decrease of 5.8%. As a percent of revenues, SG&A improved 120 basis points. Our second quarter 2017 SG&A results include $1.8 million of costs relating to our SG&A reduction initiative. The right sizing of our store fleet, operational efficiencies, and a disciplined approach to expense management, coupled with some timing and approximately $1.0 million in recovery of bad debt previously reserved for in China, contributed to this improvement.

  • Net income attributable to common stockholders was $18.1 million, or $0.20 per diluted share. Excluding $1.8 million related to our...