Online sales growth, consumer response to its spring and summer product line, and operational improvements helped deliver strong Q1 earnings for Crocs Inc. Online sales for the shoe manufacturer and retailer were $22.77 million, a 31.9% increase from $17.26 million in Q1 2015.
“While operational supply chain improvements resulted in some favorable timing of wholesale shipments in the quarter compared to our initial expectations, the strong growth in our e-commerce business and positive retail comps in all regions demonstrate the meaningful progress we have made in repositioning the Crocs brand and business over the past 21 months,” CEO Gregg Ribatt says. Ribatt joined Crocs in January 2015 and led a restructuring of the company.
For the first quarter ended March 31, Crocs, No. 224 in the Internet Retailer 2016 Top 500, reported:
- Online sales in the Americas of $14.23 million, up 42.6% from $9.98 million in Q1 2015.
- Asia Pacific web sales of $4.83 million, up 22.8% from $3.93 million. (KP note – why are figures reported in 3 digits here and 2 digits elsewhere? Better accuracy because it can change the percentage,)
- Europe web sales of $3.72 million, up 10.7% from $3.36 million.
- Retail sales of $65.82 million, down by 0.8% from $66.37 million.
- Wholesale sales of $190.5 million, up 6.7% from $178.6 million.
- Total sales of $279.1 million, a 6.4% increase from $262.2 million.
- Global comparable-store sales increased 3.1%.
- Net income of $10.1 million compared with a net loss of $2.4 million in the same period last year.
E-commerce accounted for 34.6% of retail sales and 8.2% of total sales in Q1, compared with 26.0% and 6.6%, respectively, in the prior-year quarter.
Crocs opened one retail store in the quarter and closed 11, bringing its global total to 265. The brand opened three outlet stores and closed one for a total of 188 at quarter’s end.