Crocs (CROX) reported earnings on Wed 30 Oct 19 (b/o)

** charts before earnings **

 

** charts after earnings **

Crocs beats by $0.18, beats on revs; guides Q4 revs above consensus

Reports Q3 (Sep) earnings of $0.57 per share, $0.18 better than the S&P Capital IQ Consensus of $0.39; revenues rose 19.8% year/year to $312.8 mln vs the $302.06 mln S&P Capital IQ Consensus.

Wholesale revenues grew 25.4%, e-commerce revenues grew 28.2%, and retail comparable store sales grew 12.5%.

Adjusted gross margin was 53.6%. Adjusted gross margin rose 30 basis points compared to last year's third quarter.

Co issues upside guidance for Q4, sees Q4 revs of $245-$255 mln vs. $244.03 mln S&P Capital IQ Consensus. Expects Adjusted gross margin to be approximately 50% compared to 46.2% in 4Q18. Gains from increased pricing and higher clog sales plus leveraging its fixed supply chain costs are expected to more than offset approximately 100 basis points of reduced purchasing power associated with currency, along with changes in channel mix.

• With respect to 2020 revenues, the company expects 12-14% growth over 2019 revenues. This estimate assumes that currency will negatively impact results by approximately $10 mln.