Crocs Earnings: Plastic Shoe Sales Top Estimates and Shares Soar
The company's colorful plastic clogs were once all the rage. But as sales declined, many have called the company and its shoes a passing fad, and questioned its long-term viability. But it seems that with new product designs, Crocs has managed to regain some of its popularity. It also took measures to improve operationally, which were apparent in the quarter's results.
Revenue for the second quarter of 2010 increased 31% to $228 million, compared to adjusted revenue of $174.1 million reported in the second quarter of 2009. Analysts had expected the company would report revenue of $220.6 million, according to Thomson Reuters. Sales in the Americas region grew 23%.
The company's gross margin increased from 51.1% to 57.8% in the quarter as a result of higher sales and lower expenses. Selling, general, and administrative expenses fell 26% compared to the same quarter last year.
For the current quarter, the company said it expects to earn between 22 cents a share and 24 cents a share on revenue to about $205 million. Analysts were looking at earnings of 16 cents on revenue of $190.3 million.