Early this morning Niwot, Colo. based Crocs Inc. (CROX:NASDAQ), which claims to be a top-10 world leader in innovative casual footwear for men, women, and children, announced its third quarter 2019 financial results.
The company reported that Q3/19 revenues grew 19.8% to $312.8 million compared to $261.1 million in Q3/18. The firm noted over the same corresponding period, wholesale revenues grew 25.4%, e-commerce revenues grew 28.2%, and retail comparable store sales grew 12.5%.
The firm advised that Income from operations in Q3/19 increased 187.0% to $39.9 million up from $13.9 million in Q3/18 and Net income attributable to common stockholders was $35.7 million, up from $6.5 million in Q3/18. Additionally, Diluted earnings per share in Q3/19 rose to $0.51, up from $0.07 in Q3/18 and Non-GAAP adjusted diluted earnings per share in Q3/19 was $0.57 compared to $0.19 in Q3/18.
The company indicated that during Q3/19 it repurchased approximately one million shares of its common stock for $25 million, at an average price of $23.99 per share and that as of September 30, 2019, approximately $522 million remained of the company's share repurchase authorization.
The company's President and CEO Andrew Rees commented, "We delivered an excellent quarter highlighted by 20% top-line growth and record Q3/19 revenues of $313 million. Our Americas business delivered exceptional growth, driven in part by another highly successful back to school season. Based on the strength of our recent performance and start to Q4/19, we are raising our full year guidance to 11-12% revenue growth over 2018, which would result in record annual sales for our Company. The Crocs brand momentum continues to gain pace, and for 2020, we anticipate revenue growth over 2019 of 12-14%."
The company updated its Q4/19 forecast stating that it expects Revenues in the quarter to be between $245 to $255 million compared to $216.0 million in Q4/18. For FY/19, the firm now expects Revenues to grow 11% to 12% over FY/18 revenues of $1,088.2 million, compared to prior guidance of 9% to 11%.
The company noted that it expects to increase revenue by 12% to 14% in FY/20 compared to FY/19. The estimate assumes that currency will negatively impact results by approximately $10 million.
Crocs Inc. is based in Niwot, Colo. and states that it "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. The vast majority of shoes within Crocs' collection contains Croslite material, a proprietary, molded footwear technology, delivering extraordinary comfort with each step". The company has more than $1 billion in annual sales and employs more than 4,000 people globally in its headquarters, regional offices, retail and distribution centers and sells its products in 90 about countries. Since opening in 2002, the firm has sold more than 600 million pairs of shoes worldwide.
Crocs started the day with a market capitalization of about $2.3 billion with 69.62 million shares outstanding along with a short interest of around 9.6%. CROX shares opened higher today at $36.36 (+$3.035, +9.11%) over yesterday's $33.325 closing price. The stock has traded today between $35.75-38.43/share and is currently trading at $37.55 (+$4.225, +12.68%) after reaching a 52-week high intraday price earlier in the day.[NLINSERT]
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