- Prachi Singh |
Crocs, Inc. anticipates fourth quarter revenues of 211 to 214 million dollars compared with prior guidance of 195 to 205 million dollars. The company continues to expect gross margin to increase by 80 to 100 basis points over 45.4 percent in the fourth quarter of 2017. Crocs now anticipates 2018 revenues to grow approximately 6 percent compared to prior guidance predicting revenue growth of 4 to 5 percent over 2017 revenues of 1,023.5 million dollars. The Company continues to expect gross margin to increase approximately 100 basis points over the 50.5 percent rate in 2017 and income from operations to be over 60 million dollars, up from prior guidance of slightly under 60 million dollars, and 17.3 million dollars in 2017.
Commenting on the updated outlook, Andrew Rees, President and Chief Executive Officer of Crocs, said in a statement, “We had one of our best fourth quarters in years and as a result, have increased our revenue guidance, well above the top end of our previous guidance. Classic and lined clogs were particular standouts, and exceptional results in North America contributed to our outperformance.”
With respect to 2019 revenues, the company continues to expect a mid-single digit increase over 2018 revenues. Crocs anticipates that e-commerce and wholesale growth will more than offset lower retail revenues associated with our reduced store count, which it expects to reduce revenues by approximately 25 million dollars. Adding back that 25 million dollars reduction, the company expects 2019 revenues to be up mid to high single digits over the anticipated 2018 revenues.