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8-K - 8-K - Crocs, Inc.a14-23083_18k.htm

Exhibit 99.1

 

GRAPHIC

 

 

Investor Contact:

 

Brendon Frey, ICR

 

 

 

(203) 682-8200

 

 

 

brendon.frey@icrinc.com

 

 

 

 

 

Media Contact:

 

Katy Michael, Crocs, Inc.

 

 

 

(303) 848-7000

 

 

 

kmichael@crocs.com

 

Crocs, Inc. Reports Third Quarter 2014 Financial Results

 

NIWOT, Colo., October 27, 2014 (GLOBE NEWSWIRE) — Crocs, Inc. (Nasdaq: CROX) today reported financial results for the third quarter ended September 30, 2014.

 

Third Quarter Financial Highlights:

 

·                  GAAP revenue increased 4.8% in the third quarter of 2014 to $302.4 million, which is in line with previously provided guidance of $300 million to $305 million. On a constant currency basis, revenue increased 5.4% in the third quarter of 2014.

·                  Net income was $0.12 per diluted common share on a GAAP basis in the third quarter of 2014. Excluding certain charges, the company reported a non-GAAP net income(1) per common share was $0.30

 

Crocs President Andrew Rees said, “Revenues in the quarter were in line with our expectations in three out of four regions. Despite unfavorable exchange rates, we saw 13% year-over-year revenue growth in Europe, with the greatest part of that coming from strong wholesale channel performance.  In the Americas, we saw a 10% revenue rise, as U.S. same-store sales trends began to improve in the back half of the quarter.  Revenue declined slightly in Asia, where results were substantially impacted by weaker performance in our China wholesale and retail businesses.  While Internet sales increased slightly in Japan, revenue for the region was down 9% overall due to weak retail same-store sales, lower at-once demand and continued weakness in the Yen.”

 

“From a channel perspective,” Rees continued, “global wholesale revenue climbed 8% and global Internet revenue rose 9%, with very strong Internet sales results in the Americas.  We continue to work to improve performance in our global retail channel, where revenue rose about 1% in the quarter but same-store sales were down 4.5%.  As a follow up to the reorganization efforts in the third quarter, we recently made several key changes to our global management team.  Including the consolidation of global product development and merchandising under Michelle Poole, an industry veteran with over 14 years of footwear experience. The addition of Bob Munroe as GM of the Americas;  Bob joins us with 30 years of footwear and apparel experience, including 11 years at Reebok where he was ultimately President of North America. And, the promotion of

 



 

Scott Yuan to the position of General Manager of Greater China. We are excited to enrich our team as we focus on the future and potential growth opportunities of the Crocs brand. ”

 

Financial Review

 

Third quarter operating results

 

In the third quarter of 2014, GAAP operating income was $1.1 million versus $17.9 million in the comparable quarter in the prior year.  GAAP net income was $15.8 million versus net income of $13.0 million in the comparable quarter in the prior year.

 

As outlined in the non-GAAP reconciliations set forth later in this press release, the company recorded $17.4 million in non-GAAP charges (of which $6.2 million were non-cash charges). This includes $4.1 million of expenses for the companies new ERP system in the quarter.  The company also recorded $3.8 million of dividends and dividend equivalents on the preferred stock that was issued in the first quarter of 2014. Undistributed earnings related to preferred stock reduced net income for common shareholders by 14.0% (equal to the equity participation of the preferred investment). Excluding these items the company reported:

 

·                  Non-GAAP operating income of $18.5 million versus $21.0 million in the comparable prior year period.

 

“Factors driving our third quarter 2014 performance included strong revenue growth in Europe, particularly in the wholesale channel, and improvements in the Americas region, where wholesale channel performance also led the way,” said Jeff Lasher, Crocs Chief Financial Officer.  “These were offset by negative currency impacts in Europe and Japan and weak performance in Asia, where our China wholesale volume declined significantly and retail sales at comparable stores declined by double digits in China, Korea and Hong Kong.  The quarter also was impacted by a reserve for doubtful accounts in excess of $5 million primarily as a result of delayed payments from partner-owned stores in China.”

 

Balance Sheet

 

Cash and cash equivalents at September 30, 2014, amounted to $350.4 million.  Inventory was $202.8 million and Accounts Receivable was $158.7 million.

 

Margins

 

Gross profit for the third quarter of 2014 was $155.0 million, or 51.3% as a percentage of sales, compared with $153.6 million, or 53.2% as a percentage of sales for the prior-year period.

 

Excluding special items, non-GAAP gross margins were 51.8% and Selling, General & Administrative (“SG&A”) expenses increased 4.0% to $138.0 million compared with $132.6 million a year ago, as a result of the increase in doubtful account reserves.  As a percentage of sales, SG&A decreased slightly to 45.6% compared with 46.0% in the third quarter of 2013.

 

2



 

Stock Repurchase

 

During the quarter the company repurchased approximately 2.9 million shares of common stock at an average price of $14.74 per share under its previously announced stock repurchase program. For the year to date, the company has repurchased approximately $90 million of common stock.  The company intends to be patient, methodical and opportunistic in the execution of this buyback plan.

 

ERP System Implementation

 

The company’s SAP rollout continues to go well, with successful rollouts completed in Australia and Japan, meeting expectations.  The company expects full implementation to be complete during the first half of 2015.

 

Backlog

 

The company has determined that due to the timing of bookings for future orders, they will no longer be providing detailed backlog.  Mr. Rees said “In general, our pre-books for spring 2015 are in line with our expectations.  The issues in China are partially offset by growth in Europe, and we will go over more detail in the conference call today.”

 

Financial Outlook

 

The company expects GAAP revenue of approximately $200 to $210 million in the fourth quarter of 2014.

 

CEO Search

 

As previously announced, a search is underway for a new chief executive officer for the company.  The company will make an announcement when the search is successfully concluded.

 

Conference Call Information

 

A teleconference call to discuss third quarter 2014 results is scheduled for Monday, October 27, 2014, at 5 p.m. ET. The call participation number is (888) 771-4371. A replay of the conference call will be available two hours after the completion of the call at (888) 843-7419. International participants can dial (847) 585-4405 to take part in the conference call and can access a replay of the call at (630) 652-3042. All of the above calls will require the input of the conference identification number 38339914. The call also will be streamed on the Crocs website, www.crocs.com. An audio recording of the conference call will be available at www.crocs.com through October 31, 2014.

 

About Crocs, Inc.

 

Crocs, Inc. (NASDAQ : CROX) is a world leader in innovative casual footwear for men, women and children. Crocs offers a broad portfolio of all-season products, while remaining true to its core molded footwear heritage. All

 

3



 

Crocs™ shoes feature Croslite™ material, a proprietary, revolutionary technology that gives each pair of shoes the soft, comfortable, lightweight, non-marking and odor-resistant qualities that Crocs fans know and love. Crocs celebrates the fan of being a little different and encourages fans to “Find Your Fan” in every colorful pair of shoes. Since its inception in 2002, Crocs has sold more than 300 million pairs of shoes in more than 90 countries around the world.

 

Visit www.crocs.com for additional information.

 

The matters regarding the future discussed in this news release include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding prospects, investments in our business and outlook. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances, or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to, the following: macroeconomic issues, including, but not limited to, the current global financial conditions; the effect of competition in our industry; our ability to effectively manage our future growth or declines in revenue; changing fashion trends; our ability to maintain and expand revenues and gross margin; our ability to accurately forecast consumer demand for our products; our ability to develop and sell new products; our ability to obtain and protect intellectual property rights; the effect of potential adverse currency exchange rate fluctuations and other international operating risks; our ability to open and operate additional retail locations; and other factors described in our most recent annual report on Form 10-K under the heading “Risk Factors” and our subsequent filings with the Securities and Exchange Commission. Readers are encouraged to review that section and all other disclosures appearing in our filings with the Securities and Exchange Commission.

 

All information in this document speaks as of September 30, 2014. We do not undertake any obligation to update publicly any forward-looking statements, including, without limitation, any estimate regarding revenues or earnings, whether as a result of the receipt of new information, future events, or otherwise.

 


(1) Non-GAAP net income is a financial measure not calculated in accordance with U.S. Generally Accepted Accounting Principles (non-GAAP). See the non-GAAP reconciliations set forth later in this press release for additional information.

 

4



 

CROCS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

($ thousands, except per share data)

 

2014

 

2013

 

2014

 

2013

 

Revenues

 

$

302,401

 

$

288,524

 

$

991,750

 

$

964,007

 

Cost of sales

 

146,801

 

134,943

 

475,323

 

443,710

 

Restructuring charges

 

583

 

 

2,612

 

 

Gross profit

 

155,017

 

153,581

 

513,815

 

520,297

 

Selling, general and administrative expenses

 

143,719

 

135,674

 

434,244

 

414,119

 

Restructuring charges

 

7,585

 

 

13,895

 

 

Asset impairment charges

 

2,600

 

 

5,830

 

202

 

Income from operations

 

1,113

 

17,907

 

59,846

 

105,976

 

Foreign currency transaction losses, net

 

1,290

 

1,043

 

4,278

 

4,457

 

Interest income

 

(424

)

(853

)

(1,304

)

(1,676

)

Interest expense

 

366

 

44

 

685

 

519

 

Other (income) expense, net

 

(217

)

13

 

(388

)

180

 

Income before income taxes

 

98

 

17,660

 

56,575

 

102,496

 

Income tax (benefit) expense

 

(15,669

)

4,624

 

8,407

 

25,143

 

Net income

 

$

15,767

 

$

13,036

 

$

48,168

 

$

77,353

 

Dividends on Series A convertible preferred stock

 

3,067

 

 

8,233

 

 

Dividend equivalents on Series A convertible preferred stock related to redemption value accretion and beneficial conversion feature

 

691

 

 

2,030

 

 

Net income attributable to common stockholders

 

$

12,009

 

$

13,036

 

$

37,905

 

$

77,353

 

Net income per common share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.12

 

$

0.15

 

$

0.38

 

$

0.88

 

Diluted

 

$

0.12

 

$

0.15

 

$

0.37

 

$

0.87

 

 

5



 

CROCS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (UNAUDITED)

 

In addition to financial measures presented on the basis of accounting principles generally accepted in the United States of America (“U.S. GAAP”), we present current period ‘adjusted results’, which are non-GAAP financial measures. Adjusted results of operations exclude the impact of items that management believes affect the comparability or underlying business trends in our condensed consolidated financial statements in the periods presented.

 

Management uses adjusted results to assist in comparing business trends fromperiod to period on a consistent basis without regard to the impact of non-GAAP adjustments in communications with the board of directors, stockholders, analysts and investors concerning our financial performance. We believe that these non-GAAP measures are used by, and are useful to, investors and other users of our financial statements in evaluating operating performance by providing better comparability between reporting periods because they provide an additional tool to evaluate our performance without regard to non-GAAP adjustments that may not be indicative of overall business trends. They also provide a better baseline for analyzing trends in our operations. We do not suggest that investors should consider these non-GAAP measures in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP.

 

 

 

Three Months Ended

 

Three Months Ended

 

Nine Months Ended

 

Nine Months Ended

 

 

 

September 30, 2014

 

September 30, 2013

 

September 30, 2014

 

September 30, 2013

 

 

 

 

 

 

 

 

 

 

 

Cost of sales and restructuring charges reconciliation:

 

 

 

 

 

 

 

 

 

GAAP cost of sales and restructuring charges

 

$

147,384

 

$

134,943

 

$

477,935

 

$

443,710

 

Inventory write-down (1)

 

(896

)

 

(896

)

 

Restructuring charges (2)

 

(583

)

 

(2,612

)

 

Non-GAAP cost of sales and restructuring charges

 

$

145,905

 

$

134,943

 

$

474,427

 

$

443,710

 

 

 

 

 

 

 

 

 

 

 

Gross margin reconciliation:

 

 

 

 

 

 

 

 

 

GAAP gross margin

 

51.3

%

53.2

%

51.8

%

54.0

%

Inventory write-down (1)

 

0.3

 

 

0.1

 

 

Restructuring charges (2)

 

0.2

 

 

0.3

 

 

Non-GAAP gross margin

 

51.8

%

53.2

%

52.2

%

54.0

%

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses (“SG&A”), restructuring charges and asset impairment charges reconciliation:

 

 

 

 

 

 

 

 

 

GAAP SG&A, restructuring charges and asset impairment charges

 

$

153,904

 

$

135,674

 

$

453,969

 

$

414,321

 

Restructuring charges (2)

 

(7,585

)

 

(13,895

)

 

New ERP implementation (3)

 

(4,094

)

(3,089

)

(11,122

)

(6,833

)

Retail asset impairment charges (4)

 

(2,600

)

 

(5,830

)

(202

)

Reorganization charges (2)

 

(1,125

)

 

(5,576

)

 

Legal settlement (5)

 

(487

)

 

(2,333

)

 

Brazil tax credits (6)

 

 

 

 

(6,094

)

Non-GAAP SG&A, restructuring charges and asset impairment charges

 

$

138,013

 

$

132,585

 

$

415,213

 

$

401,192

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to common stockholders reconciliation:

 

 

 

 

 

 

 

 

 

GAAP net income attributable to common stockholders reconciliation:

 

$

12,009

 

$

13,036

 

$

37,905

 

$

77,353

 

Restructuring charges (2)

 

8,168

 

 

16,507

 

 

New ERP implementation (3)

 

4,094

 

3,089

 

11,122

 

6,833

 

Retail asset impairment charges (4)

 

2,600

 

 

5,830

 

202

 

Reorganization charges (2)

 

1,125

 

 

5,576

 

 

Inventory write-down (1)

 

896

 

 

896

 

 

Legal settlement (5)

 

487

 

 

2,333

 

 

Brazil tax credits (6)

 

 

 

 

6,094

 

Non-GAAP net income attributable to common stockholders

 

$

29,379

 

$

16,125

 

$

80,169

 

$

90,482

 

 

 

 

 

 

 

 

 

 

 

Net income per diluted common share reconciliation:

 

 

 

 

 

 

 

 

 

GAAP net income per diulted common share

 

$

0.12

 

$

0.15

 

$

0.37

 

$

0.87

 

Restructuring charges (2)

 

0.08

 

 

0.16

 

 

New ERP implementation (3)

 

0.04

 

0.03

 

0.11

 

0.08

 

Retail asset impairment charges (4)

 

0.03

 

 

0.06

 

 

Reorganization charges (2)

 

0.01

 

 

0.06

 

 

Inventory write-down (1)

 

0.01

 

 

0.01

 

 

Legal settlement (5)

 

0.01

 

 

0.02

 

 

Brazil tax credits (6)

 

 

 

 

0.07

 

Non-GAAP net income per diluted common share

 

$

0.30

 

$

0.18

 

$

0.79

 

$

1.02

 

 


(1) This relates to a write-off of obsolete inventory.

 

(2) This relates to severance expenses, bonuses, store closure costs, consulting fees and other expenses related to recent restructuring activities and our investment agreement with Blackstone.

 

(3) This represents operating expenses related to the implementation of our new ERP system and the add-back of accelerated depreciation and amortization on tangible and intangible items related to our current ERP system and supporting platforms that will no longer be utilized once the implementation of a new ERP is complete.

 

(4) This represents retail asset impairment charges for certain underperforming locations in our Americas, Asia Pacific and Europe segments.

 

(5) This represents legal settlement expenses.

 

(6) This represents a net expense related to the resolution of a statutory tax audit in Brazil.

 

6



 

CROCS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 

 

 

September 30,

 

December 31,

 

($ thousands, except number of shares)

 

2014

 

2013

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

350,371

 

$

317,144

 

Accounts receivable, net of allowances of $21,001 and $10,513, respectively

 

158,664

 

104,405

 

Inventories

 

202,819

 

162,341

 

Deferred tax assets, net

 

4,278

 

4,440

 

Income tax receivable

 

19,677

 

10,630

 

Other receivables

 

17,196

 

11,942

 

Prepaid expenses and other current assets

 

36,717

 

29,175

 

Total current assets

 

789,722

 

640,077

 

Property and equipment, net

 

73,575

 

86,971

 

Intangible assets, net

 

89,599

 

72,315

 

Goodwill

 

2,235

 

2,507

 

Deferred tax assets, net

 

17,581

 

19,628

 

Other assets

 

34,220

 

53,661

 

Total assets

 

$

1,006,932

 

$

875,159

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

66,133

 

$

57,450

 

Accrued expenses and other current liabilities

 

105,142

 

97,111

 

Deferred tax liabilities, net

 

11,129

 

11,199

 

Accrued restructuring

 

3,435

 

 

Income taxes payable

 

29,218

 

15,992

 

Current portion of long-term borrowings and capital lease obligations

 

5,259

 

5,176

 

Total current liabilities

 

220,316

 

186,928

 

Long-term income tax payable

 

14,632

 

36,616

 

Long-term borrowings and capital lease obligations

 

7,714

 

11,670

 

Long-term accrued restructuring

 

310

 

 

 

Other liabilities

 

15,685

 

15,201

 

Total liabilities

 

258,657

 

250,415

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

Series A convertible preferred stock, par value $0.001 per share, 200,000 shares issued and outstanding, redemption amount and liquidation preference of $203,067 and $0 at September 30, 2014 and December 31, 2013, respectively

 

171,973

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Preferred stock, par value $0.001 per share, 5,000,000 shares authorized, none outstanding

 

 

 

Common stock, par value $0.001 per share, 250,000,000 shares authorized, 92,282,045 and 82,964,597 shares issued and outstanding, respectively, at September 30, 2014 and 91,662,656 and 88,450,203 shares issued and outstanding, respectively, at December 31, 2013

 

93

 

92

 

Treasury stock, at cost, 9,317,448 and 3,212,453 shares, respectively

 

(144,898

)

(55,964

)

Additional paid-in capital

 

343,768

 

321,532

 

Retained earnings

 

382,337

 

344,432

 

Accumulated other comprehensive income

 

(4,998

)

14,652

 

Total stockholders’ equity

 

576,302

 

624,744

 

Total liabilities, commitments and contingencies and stockholders’ equity

 

$

1,006,932

 

$

875,159

 

 

7



 

CROCS, INC. AND SUBSIDIARIES

CHANNEL REVENUES (UNAUDITED)

 

 

 

Three Months Ended September 30,

 

Change

 

Constant Currency Change (1)

 

Nine Months Ended September 30,

 

Change

 

Constant Currency Change(1)

 

($ thousands)

 

2014

 

2013

 

$

 

%

 

$

 

%

 

2014

 

2013

 

$

 

%

 

$

 

%

 

Channel revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

53,097

 

$

45,134

 

$

7,963

 

17.6

%

$

8,160

 

18.1

%

$

188,987

 

$

195,827

 

$

(6,840

)

(3.5

)%

$

(4,766

)

(2.4

)%

Asia Pacific

 

42,363

 

43,268

 

(905

)

(2.1

)

(1,074

)

(2.5

)

192,108

 

180,205

 

11,903

 

6.6

 

12,545

 

7.0

 

Japan

 

21,609

 

24,536

 

(2,927

)

(11.9

)

(1,879

)

(7.7

)

69,353

 

78,116

 

(8,763

)

(11.2

)

(4,618

)

(5.9

)

Europe

 

33,691

 

27,414

 

6,277

 

22.9

 

6,710

 

24.5

 

126,047

 

107,689

 

18,358

 

17.0

 

15,639

 

14.5

 

Other businesses­

 

435

 

37

 

398

 

1075.7

 

393

 

1062.2

 

607

 

200

 

407

 

203.5

 

375

 

187.5

 

Total Wholesale

 

151,195

 

140,389

 

10,806

 

7.7

 

12,310

 

8.8

 

577,102

 

562,037

 

15,065

 

2.7

 

19,175

 

3.4

 

Consumer-direct:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

61,721

 

59,839

 

1,882

 

3.1

 

2,179

 

3.6

 

158,924

 

156,784

 

2,140

 

1.4

 

3,270

 

2.1

 

Asia Pacific

 

32,733

 

33,469

 

(736

)

(2.2

)

(1,600

)

(4.8

)

99,500

 

93,937

 

5,563

 

5.9

 

3,972

 

4.2

 

Japan

 

11,654

 

12,397

 

(743

)

(6.0

)

(223

)

(1.8

)

30,112

 

30,625

 

(513

)

(1.7

)

1,139

 

3.7

 

Europe

 

19,494

 

18,995

 

499

 

2.6

 

531

 

2.8

 

49,844

 

46,734

 

3,110

 

6.7

 

2,908

 

6.2

 

Total Retail

 

125,602

 

124,700

 

902

 

0.7

 

887

 

0.7

 

338,380

 

328,080

 

10,300

 

3.1

 

11,289

 

3.4

 

Internet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

12,657

 

11,221

 

1,436

 

12.8

 

1,476

 

13.2

 

38,252

 

39,267

 

(1,015

)

(2.6

)

(780

)

(2.0

)

Asia Pacific

 

3,231

 

2,669

 

562

 

21.1

 

537

 

20.1

 

10,070

 

7,553

 

2,517

 

33.3

 

2,626

 

34.8

 

Japan

 

2,256

 

2,051

 

205

 

10.0

 

299

 

14.6

 

6,299

 

6,074

 

225

 

3.7

 

625

 

10.3

 

Europe

 

7,460

 

7,494

 

(34

)

(0.5

)

(37

)

(0.5

)

21,647

 

20,996

 

651

 

3.1

 

134

 

0.6

 

Total Internet

 

25,604

 

23,435

 

2,169

 

9.3

 

2,275

 

9.7

 

76,268

 

73,890

 

2,378

 

3.2

 

2,605

 

3.5

 

Total revenues:

 

$

302,401

 

$

288,524

 

$

13,877

 

4.8

%

$

15,472

 

5.4

%

$

991,750

 

$

964,007

 

$

27,743

 

2.9

%

$

33,069

 

3.4

%

 

 

 

Three Months Ended September 30,

 

Change

 

Constant Currency Change(1)

 

Nine Months Ended September 30,

 

Change

 

Constant Currency Change(1)

 

($ thousands)

 

2014

 

2013

 

$

 

%

 

$

 

%

 

2014

 

2013

 

$

 

%

 

$

 

%

 

Regional Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

127,475

 

$

116,194

 

$

11,281

 

9.7

%

$

11,815

 

10.2

%

$

386,163

 

$

391,878

 

$

(5,715

)

(1.5

)%

$

(2,276

)

(0.6

)%

Asia Pacific

 

78,327

 

79,406

 

(1,079

)

(1.4

)

(2,137

)

(2.7

)

301,678

 

281,695

 

19,983

 

7.1

 

19,143

 

6.8

 

Japan

 

35,519

 

38,984

 

(3,465

)

(8.9

)

(1,803

)

(4.6

)

105,764

 

114,815

 

(9,051

)

(7.9

)

(2,854

)

(2.5

)

Europe

 

60,645

 

53,903

 

6,742

 

12.5

 

7,204

 

13.4

 

197,538

 

175,419

 

22,119

 

12.6

 

18,681

 

10.6

 

Other businesses

 

435

 

37

 

398

 

1,075.7

 

393

 

1,062.2

 

607

 

200

 

407

 

203.5

 

375

 

187.5

 

Total revenues:

 

$

302,401

 

$

288,524

 

$

13,877

 

4.8

%

$

15,472

 

5.4

%

$

991,750

 

$

964,007

 

$

27,743

 

2.9

%

$

33,069

 

3.4

%

 


(1) Reflects quarter-over-quarter and year-over-year change as if the current period results were in “constant currency,” which is a non-GAAP financial measure. Constant currency is a measure utilized by management in which current period results have been restated using 2013 average foreign exchange rates for the comparative period to enhance the visibility of the underlying business trends by excluding the impact of foreign currency exchange rate fluctuations. We do not suggest that investors should consider this non-GAAP measure in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP.

 

8



 

CROCS, INC. AND SUBSIDIARIES

RETAIL STORE COUNTS (UNAUDITED)

 

 

 

December 31,

 

 

 

 

 

September 30,

 

Company-operated retail locations:

 

2013

 

Opened

 

Closed

 

2014

 

Type:

 

 

 

 

 

 

 

 

 

Kiosk/Store in Store

 

122

 

5

 

(27

)

100

 

Retail Stores

 

327

 

39

 

(37

)

329

 

Outlet Stores

 

170

 

21

 

(15

)

176

 

Total

 

619

 

65

 

(79

)

605

 

Operating segment:

 

 

 

 

 

 

 

 

 

Americas

 

216

 

16

 

(21

)

211

 

Asia Pacific

 

236

 

34

 

(48

)

222

 

Japan

 

49

 

5

 

(1

)

53

 

Europe

 

118

 

10

 

(9

)

119

 

Total

 

619

 

65

 

(79

)

605

 

 

 

 

September 30,

 

 

 

 

 

September 30,

 

Company-operated retail locations:

 

2013

 

Opened

 

Closed

 

2014

 

Type:

 

 

 

 

 

 

 

 

 

Kiosk/Store in Store

 

122

 

7

 

(29

)

100

 

Retail Stores

 

315

 

53

 

(39

)

329

 

Outlet Stores

 

157

 

35

 

(16

)

176

 

Total

 

594

 

95

 

(84

)

605

 

Operating segment:

 

 

 

 

 

 

 

 

 

Americas

 

208

 

24

 

(21

)

211

 

Asia Pacific

 

221

 

52

 

(51

)

222

 

Japan

 

50

 

5

 

(2

)

53

 

Europe

 

115

 

14

 

(10

)

119

 

Total

 

594

 

95

 

(84

)

605

 

 

9



 

CROCS, INC. AND SUBSIDIARIES

COMPARABLE STORE SALES (UNAUDITED)

 

 

 

Constant Currency

 

Constant Currency

 

 

 

Three Months Ended

 

Three Months Ended

 

Comparable store sales (1)

 

September 30, 2014 (2)

 

September 30, 2013 (2)

 

Americas

 

(3.1

)%

(8.3

)%

Asia Pacific

 

(9.2

)

6.0

 

Japan

 

(8.0

)

(16.3

)

Europe

 

0.1

 

8.8

 

Global

 

(4.5

)%

(4.2

)%

 

 

 

Constant Currency

 

Constant Currency

 

 

 

Nine Months Ended

 

Nine Months Ended

 

Comparable store sales (1)

 

September 30, 2014 (2)

 

September 30, 2013 (2)

 

Americas

 

(4.7

)%

(5.1

)%

Asia Pacific

 

(4.9

)

7.2

 

Japan

 

(5.9

)

(16.1

)

Europe

 

0.6

 

3.1

 

Global

 

(4.1

)%

(2.4

)%

 


(1) Comparable store status is determined on a monthly basis. Comparable store sales begin in the thirteenth month of a store’s operation. Stores in which selling square footage has changed more than 15% as a result of a remodel, expansion or reduction are excluded until the thirteenth month in which they have comparable prior year sales. Temporarily closed stores are excluded from the comparable store sales calculation during the month of closure. Location closures in excess of three months are excluded until the thirteenth month post re-opening. Comparable store sales exclude the impact of our internet channel revenues and are calculated on a currency neutral basis using historical annual average currency rates.

 

(2) Reflects quarter-over-quarter and year-over-year change as if the current period results were in “constant currency,” which is a non-GAAP financial measure. Constant currency is a measure utilized by management in which current period results have been restated using 2013 average foreign exchange rates for the comparative period to enhance the visibility of the underlying business trends by excluding the impact of foreign currency exchange rate fluctuations. We do not suggest that investors should consider this non-GAAP measure in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP.

 

10