- Prachi Singh |
Crocs revenues in the first quarter of 267.9 million dollars, decreased 4.4 percent on a constant currency basis, compared to the first quarter of 2016.
Commenting on the results, Gregg Ribatt, Chief Executive Officer, said in a statement, “During the first quarter of 2017, we continued to execute against our strategic plan to strengthen the company and brand. We are moving rapidly to implement our SG&A reduction plan, and in connection with that initiative, we closed a net 16 company operated stores during the first quarter and signed agreements to transfer 24 company operated stores to distributors during the second quarter of 2017."
Highlights of first quarter operating results
Gross margin was 49.9 percent compared to 46.3 percent in the first quarter of 2016, representing a 350 basis point improvement over the prior year’s first quarter. The company said, higher quality sales, a shift to a higher percentage of molded product and lower input costs contributed to this improvement.
Net income attributable to common stockholders was 7.2 million dollars or 0.08 per basic and diluted share compared to 6.4 million dollars or 0.07 dollar per basic and diluted share in the first quarter of 2016. Excluding 2.2 million dollars related to SG&A reduction initiatives, the company reported non-GAAP net income attributable to common stockholders of 9.3 million dollars against 6.4 million dollars last year.
During the quarter, the company has entered into agreements transferring certain company operated stores in the Middle East and China to distributors. In the Middle East, The Apparel Group will assume responsibility for all 13 of the Crocs stores and will become our exclusive distributor in several countries in this region. In China, the company has entered into agreements to transfer 11 of the company operated stores to existing distributors.
Crocs reveals Q2 and FY17 outlook
The company expects second quarter 2017 revenues to be between 305 and 315 million dollars. The company expects gross margin for the second quarter to be approximately 150 basis points higher than the second quarter of 2016.
For the full year, the company now expects revenues to be down low single digits compared to 2016, whereas its prior guidance contemplated flat revenues. The company continues to expect gross margin to be approximately 50 percent.