Retail sales revenues up at CROCS

20 Feb '09

4 min read

Crocs Inc. reported financial results for the fourth quarter and fiscal year ended December 31, 2008.

Revenues for the three months ended December 31, 2008 decreased 43.9% to $126.1 million compared to $224.8 million for the three months ended December 31, 2007. Revenues for the year ended December 31, 2008 decreased 14.8% to $721.6 million compared to $847.4 million for the year ended December 31, 2007.

For the year ended December 31, 2008, compared to the year ended December 31, 2007, changes in our regional revenue streams include the following:
· Revenue in Asia increased 22.4% to $204.9 million;
· Revenue in Europe decreased 16.2% to $150.7 million; and
· Revenue in the Americas decreased 26.9% to $366 million.

For the year ended December 31, 2008, changes in our channel revenue streams include the following:
- Revenues generated from retail sales increased 68.7% to $125.8 million;
- Revenues generated from internet sales increased 28.9% to $43.7 million; and
- Revenues generated from wholesale sales decreased 25.3% to $552.1 million.

The Company reported a net loss of $33.2 million, or ($0.40) per diluted share for the three months ended December 31, 2008 compared to net income of $38.3 million, or $0.45 per diluted share for the three months ended December 31, 2007. The reported net loss of $33.2 million during the three months ended December 31, 2008 includes approximately $21.1 million in pre-tax foreign currency exchange rate non cash losses primarily on intercompany balances and approximately $0.90 million in pre-tax, restructuring charges primarily related to the shutdown of the Company's manufacturing facility in Brazil.

Excluding the foreign currency exchange rate losses, net of tax, during the quarter of $16.1 million, or ($0.20) per diluted share, the Company's non-GAAP net loss amounted to $17.1 million or ($0.20) per diluted share in the three months ended December 31, 2008.

The Company reported a net loss of $183.6 million or ($2.22) per diluted share for the year ended December 31, 2008 compared to net income of $168.2 million or $2.00 per diluted share for the year ended December 31, 2007. The reported loss of $183.6 million includes the following pre-tax charges:
- $25.4 million in non-cash foreign currency exchange rate losses primarily on intercompany balances;
- $8.6 million in restructuring charges related to the shutdown of the Company's manufacturing facilities in Brazil and in Canada;
- $65.4 million representing the net non-cash change of inventory write-downs from December 31, 2007 to December 31, 2008
- $45.8 million in non-cash asset impairment charges related to goodwill, intangible assets and the write-off of excess equipment and tooling.

Excluding these non-cash charges, non-GAAP net loss for 2008 was $37.2 million or ($0.44) per diluted share.

Gross profit for the three months ended December 31, 2008 was $56.0 million or 44.4% of revenues, compared to $125.8 million or 56.0% of revenues for the three months ended December 31, 2007. Gross profit for the year ended December 31, 2008 was $234.0 million or 32.4% of revenues, compared to $497.6 million or 58.7% of revenues for the year ended December 31, 2007.

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