Footwear brand Crocs beats forecasts as turnaround progresses on track

 
Courtney Goldsmith
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Crocs' turnaround programme is on track (Source: Getty)

Crocs revealed it revived its business in the second quarter as it made progress with its turnaround programme.

The figures

The distinctive footwear brand reported better than expected sales and profit for the three months to the end of June.

Revenue fell to $313.2m (£240.8m) from $323.8m the previous year, but it was at the high end of the company's guidance and topped Wall Street's guidance of $311.3m.

The clog maker revealed net income attributable to shareholders reached $18.1m, or 20 cents per share, in the quarter up from $11.7m, or 13 cents per share, the previous year. Net income beat analyst forecasts of 14 cents.

Excluding extraordinary items, the company reported non-GAAP net income of $19.9m.

Shares were flat in after-hours trading after closing 5.07 per cent higher at $8.50.

What Crocs said

Andrew Rees, president and chief executive, said the company continued to revitalise the Crocs brand in the second quarter.

A favourable response to our spring/summer 2017 collection, particularly as it relates to clogs and sandals, drove solid growth in these silhouettes.

Rees added that a focus on core moulded products and effective inventory management helped the company deliver gross margins that exceeded guidance.

We are optimistic about the early response to our fall/holiday 2017 collection, and anticipate that the positive sentiment seen to date will continue throughout the second half of the year, despite the challenging retail environment.

Read more: Crocs’ revenue fall leads to share sell-off

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