Crocs, Inc. (NASDAQ:CROX) today reported financial results for
the fourth quarter and year ended December 31, 2016.
Fourth Quarter Highlights:
- Revenues were in line with guidance at $187.4
million compared to $208.7 million for the same period last year.
On a constant currency basis, revenues decreased 10.5%.
- Net loss attributable to common stockholders
on a GAAP basis was $44.5 million or a loss of $0.60 per
share.
- Excluding certain charges not related to our core business, the
company reported a non-GAAP adjusted net loss
attributable to common stockholders of $43.1 million, or a 9%
improvement compared to the same period last year.
Full Year Highlights:
- Revenues were $1,036.3 million. On a constant
currency basis, revenues decreased 4.7% compared to the prior year
period.
- Net loss attributable to common stockholders
on a GAAP basis was $31.7 million or a loss of $0.43 per
share.
- Excluding certain charges not related to our core business, the
company reported a non-GAAP adjusted net
loss attributable to common stockholders of $26.9
million, or a 22% improvement compared to last year.
- Improved inventory management
resulted in a $21.2 million, or 13%, decrease in inventory as of
December 31, 2016 compared to December 31, 2015.
Gregg Ribatt, Chief Executive Officer, noted
that, “Our fourth quarter revenues were in line with our
expectations while our adjusted gross margin rate improved by
approximately 550 basis points versus prior year. This gross margin
gain was less than previously anticipated due to currency and
channel mix fluctuations and also to certain one-time events,
however we are still on track to achieve our medium-term target for
gross margins in the low 50% range. Furthermore, disciplined
inventory management practices enabled us to reduce year-end
inventory levels by $21.2 million, or 13%, and to generate
approximately $40 million of cash flow from operations during the
year.”
Mr. Ribatt continued, “I’m very pleased with the
operational progress made in 2016 as we continued to improve our
product, systems, processes and team. Given this progress, I am
pleased to announce that the Board and I have determined that we
are now in a position to consolidate the President and CEO
roles. Effective June 1st, Andrew Rees is being promoted to
President and CEO, and I will step down as CEO but continue in my
Board role. Furthermore, effective immediately, we are expanding
responsibilities for certain executive team members to better
utilize their talents and leadership expertise. Finally, in order
to accelerate improved profitability, we have identified $75 to $85
million of annualized SG&A reductions that we expect will
generate an annual $30 to $35 million of improvement in earnings
before interest and taxes by 2019. Looking ahead, I am confident
that these actions will pave the way for renewed growth and
improved shareholder value.”
Fourth Quarter Operating Results
In the fourth quarter of 2016, the company
reported a GAAP net loss attributable to common stockholders of
$44.5 million or $0.60 per basic and diluted share, compared to a
net loss attributable to common stockholders of $73.9 million, or
$1.01 per basic and diluted share, in the same quarter of the prior
year.
As outlined in detail in the GAAP to non-GAAP
reconciliations set forth later in this press release, the company
recorded net charges of $1.4 million unrelated to our core business
in the three months ended December 31, 2016, compared to $26.8
million in the three months ended December 31, 2015. Excluding
these items, the company reported on a comparable basis, non-GAAP
adjusted net loss attributable to common stockholders of $43.1
million in the three months ended December 31, 2016, versus
non-GAAP adjusted net loss attributable to common stockholders of
$47.2 million in the three months ended December 31, 2015.
Full Year Operating Results
For the full year, the company reported a GAAP
net loss attributable to common stockholders of $31.7 million or
$0.43 per basic and diluted share, compared to a GAAP net loss
attributable to common stockholders of $98.0 million, or $1.30 per
basic and diluted share in 2015.
As outlined in detail in the GAAP to non-GAAP
reconciliations set forth later in this press release, the company
recorded net charges of $4.9 million unrelated to our core business
in the year ended December 31, 2016, compared to $63.7 million in
the year ended December 31, 2015. Excluding these items, the
company reported on a comparable basis, non-GAAP adjusted net loss
attributable to common stockholders of $26.9 million in the year
ended December 31, 2016, versus non-GAAP adjusted net loss
attributable to common stockholders of $34.3 million in the year
ended December 31, 2015.
Balance Sheet
Cash and cash equivalents as of December 31,
2016 were $147.6 million compared to $143.3 million as of
December 31, 2015. Inventory was $147.0 million as of December
31, 2016 compared to $168.2 million as of December 31, 2015.
The company did not repurchase any shares during
the three months or the year ended December 31, 2016.
Full Year 2017 Outlook
- The company expects 2017 revenue to be relatively flat compared
to prior year reflecting the impact of store closings, the
reduction of discount channel business and the disposition of our
South Africa and Taiwan businesses during 2016, as we continue to
focus on improving the quality of our revenue.
- The company expects gross margin for 2017 to be approximately
50%.
- The company expects Non-GAAP SG&A for 2017 to be
approximately $495 million.
First Quarter 2017 Outlook
- The company expects first quarter 2017 revenue to be between
$255 and $265 million dollars.
- The company expects gross margin for the quarter to be
approximately 200 basis points higher than first quarter 2016.
- The company expects Non-GAAP SG&A for the quarter to be
moderately above prior year in absolute dollars.
SG&A Reduction Plan
The company continues to identify opportunities
to improve the efficiency and effectiveness of its operations. In
doing so, it has identified SG&A reductions in the amount of
$75 to $85 million. These actions are projected to generate an
annual $30 to $35 million improvement in earnings before interest
and taxes by 2019. We expect to achieve approximately $25 million
of these SG&A reductions in 2017. We expect to incur one-time
charges of approximately $10 to $15 million over the next two years
to achieve these SG&A reductions, with approximately $7 to $10
million of that being incurred this year. In conjunction with these
actions, we anticipate closing approximately 160 retail stores by
the end of 2018, thereby reducing our total store count to
approximately 400 from 558 at the end of 2016.
Executive Leadership Transition
From an organizational and operational perspective, we have made
significant progress over the past two years. This progress enables
us to further streamline our organization and consolidate the roles
of President and CEO. To that end, Andrew Rees, who joined the
company in June 2014 as President, will be promoted to President
and Chief Executive Officer effective June 1, 2017. Gregg Ribatt,
our current Chief Executive Officer, will remain on the Company’s
Board of Directors. In addition, the following changes are taking
place effective immediately:
- Michelle Poole, SVP of Global Product and Merchandising is
assuming responsibility for Marketing.
- Ann Chan, SVP and GM of Europe, is transitioning to SVP and
General Manager of Americas.
- David Thompson, SVP of AMEA is also assuming responsibility for
Europe, and
- We have established a new Global eCommerce function which is
being headed by Adam Michael, who has been promoted to SVP of
Global eCommerce.
Conference Call Information
A teleconference call to discuss results for the
2016 fourth quarter and year is scheduled for today, Wednesday,
March 1, 2017, at 8:30 am EST. The call participation number is
(888) 771-4371. A recording 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 44331249. 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 March 1, 2018.
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 Crocs™ shoes feature
Croslite™ material, a proprietary, revolutionary technology that
gives each pair of shoes the soft, comfortable, lightweight and
non-marking qualities that Crocs fans know and love. Since its
inception in 2002, Crocs has sold more than 350 million pairs of
shoes in more than 90 countries around the world.
Visit www.crocs.com for additional information.
This news release includes “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, expectations and our 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:
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 successfully implement our strategic plans; 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; 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
March 1, 2017. 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.
| CROCS, INC. AND SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF
OPERATIONS |
| (in thousands, except per share
amounts) |
| |
|
|
|
| |
Three Months Ended December 31, |
|
Year Ended December 31, |
| |
2016 |
|
2015 |
|
2016 |
|
2015 |
| Revenues |
$ |
187,417 |
|
|
$ |
208,678 |
|
|
$ |
1,036,273 |
|
|
$ |
1,090,630 |
|
| Cost of sales |
108,693 |
|
|
135,934 |
|
|
536,109 |
|
|
579,825 |
|
| Gross
profit |
78,724 |
|
|
72,744 |
|
|
500,164 |
|
|
510,805 |
|
| Selling, general and
administrative expenses |
117,061 |
|
|
129,280 |
|
|
503,174 |
|
|
559,095 |
|
| Asset impairments |
1,450 |
|
|
7,771 |
|
|
3,144 |
|
|
15,306 |
|
| Restructuring
charges |
— |
|
|
1,274 |
|
|
— |
|
|
8,728 |
|
| Loss from
operations |
(39,787 |
) |
|
(65,581 |
) |
|
(6,154 |
) |
|
(72,324 |
) |
| Foreign currency loss,
net |
(886 |
) |
|
(701 |
) |
|
(2,454 |
) |
|
(3,332 |
) |
| Interest income |
135 |
|
|
215 |
|
|
692 |
|
|
967 |
|
| Interest expense |
(174 |
) |
|
(319 |
) |
|
(836 |
) |
|
(969 |
) |
| Other income, net |
1,645 |
|
|
920 |
|
|
1,539 |
|
|
914 |
|
| Loss
before income taxes |
(39,067 |
) |
|
(65,466 |
) |
|
(7,213 |
) |
|
(74,744 |
) |
| Income tax expense |
(1,577 |
) |
|
(4,707 |
) |
|
(9,281 |
) |
|
(8,452 |
) |
| Net
loss |
$ |
(40,644 |
) |
|
$ |
(70,173 |
) |
|
$ |
(16,494 |
) |
|
$ |
(83,196 |
) |
| |
|
|
|
|
|
|
|
| Dividends on
Series A convertible preferred stock |
$ |
(3,000 |
) |
|
$ |
(3,000 |
) |
|
$ |
(12,000 |
) |
|
$ |
(11,833 |
) |
| Dividend equivalents on
Series A convertible preferred shares related to redemption
value accretion and beneficial conversion feature |
(838 |
) |
|
(769 |
) |
|
(3,244 |
) |
|
(2,978 |
) |
| Net loss
attributable to common stockholders |
$ |
(44,482 |
) |
|
$ |
(73,942 |
) |
|
$ |
(31,738 |
) |
|
$ |
(98,007 |
) |
| Net loss per common
share: |
|
|
|
|
|
|
|
|
Basic |
$ |
(0.60 |
) |
|
$ |
(1.01 |
) |
|
$ |
(0.43 |
) |
|
$ |
(1.30 |
) |
|
Diluted |
$ |
(0.60 |
) |
|
$ |
(1.01 |
) |
|
$ |
(0.43 |
) |
|
$ |
(1.30 |
) |
| |
|
|
|
|
|
|
|
| CROCS, INC. AND SUBSIDIARIES |
| CONSOLIDATED BALANCE SHEETS |
| (in thousands) |
|
|
|
|
|
| |
December 31, 2016 |
|
December 31, 2015 |
|
ASSETS |
|
|
|
| Current assets: |
|
|
|
| Cash and
cash equivalents |
$ |
147,565 |
|
|
$ |
143,341 |
|
| Accounts
receivable, net of allowances of $48,138 and $49,364,
respectively |
78,297 |
|
|
83,616 |
|
|
Inventories |
147,029 |
|
|
168,192 |
|
| Income
tax receivable |
2,995 |
|
|
10,233 |
|
| Other
receivables |
14,642 |
|
|
14,233 |
|
|
Restricted cash - current |
2,534 |
|
|
2,554 |
|
| Prepaid
expenses and other assets |
32,413 |
|
|
23,780 |
|
| Total
current assets |
425,475 |
|
|
445,949 |
|
| Property and equipment,
net |
44,090 |
|
|
49,490 |
|
| Intangible assets,
net |
72,700 |
|
|
82,297 |
|
| Goodwill |
1,480 |
|
|
1,973 |
|
| Deferred taxes,
net |
6,825 |
|
|
6,608 |
|
| Restricted cash |
2,547 |
|
|
3,551 |
|
| Other assets |
13,273 |
|
|
18,152 |
|
|
Total assets |
$ |
566,390 |
|
|
$ |
608,020 |
|
| |
|
|
|
| LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
| Current
liabilities: |
|
|
|
| Accounts
payable |
$ |
61,927 |
|
|
$ |
63,336 |
|
| Accrued
expenses and other liabilities |
78,282 |
|
|
92,573 |
|
| Income
taxes payable |
6,593 |
|
|
6,416 |
|
| Current
portion of long-term borrowings and capital lease obligations |
2,338 |
|
|
4,772 |
|
| Total
current liabilities |
149,140 |
|
|
167,097 |
|
| Long-term income tax
payable |
4,464 |
|
|
4,547 |
|
| Long-term borrowings
and capital lease obligations |
40 |
|
|
1,627 |
|
| Other liabilities |
13,462 |
|
|
13,120 |
|
|
Total liabilities |
167,106 |
|
|
186,391 |
|
| Commitments and
contingencies |
|
|
|
| Series A convertible
preferred stock |
178,901 |
|
|
175,657 |
|
| Stockholders'
equity: |
|
|
|
| Preferred
stock |
|
|
|
| Common
stock |
94 |
|
|
94 |
|
| Treasury
stock |
(284,237 |
) |
|
(283,913 |
) |
|
Additional paid-in capital |
364,397 |
|
|
353,241 |
|
| Retained
earnings |
195,725 |
|
|
227,463 |
|
|
Accumulated other comprehensive loss |
(55,596 |
) |
|
(50,913 |
) |
|
Total stockholders' equity |
220,383 |
|
|
245,972 |
|
|
Total liabilities and stockholders' equity |
$ |
566,390 |
|
|
$ |
608,020 |
|
| |
|
|
|
|
|
|
|
CROCS, INC. AND
SUBSIDIARIESRECONCILIATION OF GAAP MEASURES TO
NON-GAAP MEASURES
In addition to financial measures presented on
the basis of accounting principles generally accepted in the United
States of America (“GAAP”), we present “Non-GAAP selling, general,
and administrative expenses”, “Non-GAAP cost of sales”, and
“Non-GAAP adjusted net income (loss) attributable to common
stockholders”, which are non-GAAP financial measures. Adjusted
results exclude the impact of items that management believes affect
the comparability or underlying business trends in our consolidated
financial statements in the periods presented.
We also present certain information related to
our current period results of operations through “constant
currency”, which is a non-GAAP financial measure and should be
viewed as a supplement to our results of operations and
presentation of reportable segments under GAAP. Constant currency
represents current period results that have been recast using prior
year average foreign exchange rates for the comparative period to
enhance the visibility of the underlying business trends excluding
the impact of foreign currency exchange rate fluctuations.
Management uses adjusted results to assist in
comparing business trends from period to period on a consistent
non-GAAP basis in communications with the board of directors,
stockholders, analysts, and investors concerning our financial
performance. We believe that these non-GAAP measures are useful to
investors and other users of our consolidated financial statements
as an additional tool for evaluating operating performance. We
believe they also provide a useful baseline for analyzing trends in
our operations. Investors should not consider these non-GAAP
measures in isolation from, or as a substitute for, financial
information prepared in accordance with GAAP.
| CROCS, INC. AND
SUBSIDIARIES |
| RECONCILIATION OF GAAP MEASURES TO NON-GAAP
MEASURES |
| |
|
|
|
| |
Three Months Ended December 31, |
|
Year Ended December 31, |
| |
2016 |
|
2015 |
|
2016 |
|
2015 |
| |
(in thousands) |
| Selling, general and
administrative expenses reconciliation: |
|
|
|
|
|
|
|
| GAAP
selling, general and administrative expenses |
$ |
117,061 |
|
|
$ |
129,280 |
|
|
$ |
503,174 |
|
|
$ |
559,095 |
|
|
Reorganization charges (1) |
— |
|
|
(4,265 |
) |
|
(458 |
) |
|
(8,391 |
) |
| Customs
audit settlements (2) |
— |
|
|
— |
|
|
(354 |
) |
|
— |
|
| ERP
implementation fees(3) |
— |
|
|
(3,470 |
) |
|
— |
|
|
(12,569 |
) |
| Improper
disbursements and related legal fees (4) |
— |
|
|
(207 |
) |
|
— |
|
|
(7,895 |
) |
| Legal
settlements and contract termination costs(5) |
(1,361 |
) |
|
— |
|
|
(1,361 |
) |
|
— |
|
| Bad debt
expense related to South Africa (6) |
— |
|
|
(613 |
) |
|
— |
|
|
(613 |
) |
| Total
adjustments |
(1,361 |
) |
|
(8,555 |
) |
|
(2,173 |
) |
|
(29,468 |
) |
| Non-GAAP
selling, general and administrative expenses |
$ |
115,700 |
|
|
$ |
120,725 |
|
|
$ |
501,001 |
|
|
$ |
529,627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended December 31, |
|
Year Ended December 31, |
| |
2016 |
|
2015 |
|
2016 |
|
2015 |
| |
(in thousands) |
| Cost of sales
reconciliation: |
|
|
|
|
|
|
|
| GAAP cost
of sales |
$ |
108,693 |
|
|
$ |
135,934 |
|
|
$ |
536,109 |
|
|
$ |
579,825 |
|
| Customs
audit settlements (6) |
— |
|
|
— |
|
|
(2,694 |
) |
|
— |
|
| Inventory
write-down (7) |
— |
|
|
(3,108 |
) |
|
— |
|
|
(3,108 |
) |
| Contract
termination fees |
— |
|
|
(324 |
) |
|
— |
|
|
(324 |
) |
| Statutory
audits (7) |
— |
|
|
— |
|
|
— |
|
|
(1,000 |
) |
| Total
adjustments |
— |
|
|
$ |
(3,432 |
) |
|
$ |
(2,694 |
) |
|
(4,432 |
) |
| Non-GAAP
cost of sales |
$ |
108,693 |
|
|
$ |
132,502 |
|
|
$ |
533,415 |
|
|
$ |
575,393 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended December 31, |
|
Year Ended December 31, |
| |
2016 |
|
2015 |
|
2016 |
|
2015 |
| |
(in thousands) |
| Net loss attributable
to common stockholders reconciliation: |
|
|
|
|
|
|
|
| GAAP net
loss attributable to common stockholders |
$ |
(44,482 |
) |
|
$ |
(73,942 |
) |
|
$ |
(31,738 |
) |
|
$ |
(98,007 |
) |
| Customs
audit settlements (2, 6) |
— |
|
|
— |
|
|
3,048 |
|
|
— |
|
|
Reorganization charges (1) |
— |
|
|
4,265 |
|
|
458 |
|
|
8,391 |
|
| Asset
impairment charges (8) |
— |
|
|
7,771 |
|
|
— |
|
|
15,306 |
|
|
Restructuring charges (9) |
— |
|
|
1,274 |
|
|
— |
|
|
8,728 |
|
|
Impairment charges related to South Africa |
— |
|
|
5,747 |
|
|
— |
|
|
5,747 |
|
| ERP
implementation (3) |
— |
|
|
3,794 |
|
|
— |
|
|
12,893 |
|
| Inventory
write-down (X) |
— |
|
|
3,108 |
|
|
— |
|
|
3,108 |
|
| Bad debt
expense related to South Africa (X) |
— |
|
|
613 |
|
|
— |
|
|
613 |
|
| Improper
disbursements and related legal fees (4) |
— |
|
|
— |
|
|
— |
|
|
— |
|
| Legal
settlements and contract termination costs(5) |
1,361 |
|
|
207 |
|
|
1,361 |
|
|
7,895 |
|
| Statutory
audits (7) |
— |
|
|
— |
|
|
— |
|
|
1,000 |
|
|
Total adjustments |
1,361 |
|
|
26,779 |
|
|
4,867 |
|
|
63,681 |
|
| Non-GAAP
adjusted net loss attributable to common stockholders |
$ |
(43,121 |
) |
|
$ |
(47,163 |
) |
|
$ |
(26,871 |
) |
|
$ |
(34,326 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
__________________(1) Relates to severance expense, bonuses,
store closure costs, consulting fees, and other expenses related to
reorganization activities and our investment agreement with
Blackstone.
(2) Represents penalties and fees related to customs audit
settlements.
(3) Represents operating expenses incurred in 2015 related to
the implementation of the new ERP system.
(4) Represents invalid disbursements and related legal expenses
that occurred in 2015.
(5) Relates primarily to airplane lease termination costs in
2016 and legal expenses for matters surrounding California wage
settlements in 2015.
(6) Represents the increase or release
of tariff reserves related to customs audit
settlements.
(7) Represents expenses incurred related to statutory
audits.
(8) Represents retail asset impairment charges for certain
underperforming locations in our Americas, Asia Pacific, and Europe
operating segments.
(9) Relates to bonuses, consulting fees, and other expenses
related to restructuring activities that concluded in December
2015.
| CROCS, INC. SUBSIDIARIES |
| REVENUES BY SEGMENT AND CHANNEL |
| |
|
|
|
|
|
| |
Three Months Ended December 31, |
|
Change |
|
Constant Currency Change (1) |
| |
2016 |
|
2015 |
|
$ |
|
% |
|
$ |
|
% |
| Wholesale: |
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
$ |
32,046 |
|
|
$ |
35,581 |
|
|
$ |
(3,535 |
) |
|
(9.9 |
)% |
|
$ |
(3,890 |
) |
|
(10.9 |
)% |
| Asia
Pacific |
35,182 |
|
|
37,166 |
|
|
(1,984 |
) |
|
(5.3 |
)% |
|
(2,552 |
) |
|
(6.9 |
)% |
|
Europe |
13,348 |
|
|
17,412 |
|
|
(4,064 |
) |
|
(23.3 |
)% |
|
(3,850 |
) |
|
(22.1 |
)% |
| Other
businesses |
78 |
|
|
125 |
|
|
(47 |
) |
|
(37.6 |
)% |
|
(45 |
) |
|
(36.0 |
)% |
| Total
wholesale |
80,654 |
|
|
90,284 |
|
|
(9,630 |
) |
|
(10.7 |
)% |
|
(10,337 |
) |
|
(11.4 |
)% |
| Retail: |
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
41,713 |
|
|
44,912 |
|
|
(3,199 |
) |
|
(7.1 |
)% |
|
(3,192 |
) |
|
(7.1 |
)% |
| Asia
Pacific |
23,940 |
|
|
28,703 |
|
|
(4,763 |
) |
|
(16.6 |
)% |
|
(5,098 |
) |
|
(17.8 |
)% |
|
Europe |
8,013 |
|
|
8,126 |
|
|
(113 |
) |
|
(1.4 |
)% |
|
75 |
|
|
0.9 |
% |
| Total
retail |
73,666 |
|
|
81,741 |
|
|
(8,075 |
) |
|
(9.9 |
)% |
|
(8,215 |
) |
|
(10.1 |
)% |
| E-commerce: |
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
19,361 |
|
|
22,160 |
|
|
(2,799 |
) |
|
(12.6 |
)% |
|
(2,793 |
) |
|
(12.6 |
)% |
| Asia
Pacific |
9,688 |
|
|
10,412 |
|
|
(724 |
) |
|
(7.0 |
)% |
|
(557 |
) |
|
(5.3 |
)% |
|
Europe |
4,048 |
|
|
4,081 |
|
|
(33 |
) |
|
(0.8 |
)% |
|
38 |
|
|
0.9 |
% |
| Total
e-commerce |
33,097 |
|
|
36,653 |
|
|
(3,556 |
) |
|
(9.7 |
)% |
|
(3,312 |
) |
|
(9.0 |
)% |
| Total
revenues |
$ |
187,417 |
|
|
$ |
208,678 |
|
|
$ |
(21,261 |
) |
|
(10.2 |
)% |
|
$ |
(21,864 |
) |
|
(10.5 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
$ |
93,120 |
|
|
$ |
102,653 |
|
|
$ |
(9,533 |
) |
|
(9.3 |
)% |
|
(9,875 |
) |
|
(9.6 |
)% |
| Asia
Pacific |
68,810 |
|
|
76,281 |
|
|
(7,471 |
) |
|
(9.8 |
)% |
|
(8,207 |
) |
|
(10.8 |
)% |
|
Europe |
25,409 |
|
|
29,619 |
|
|
(4,210 |
) |
|
(14.2 |
)% |
|
(3,737 |
) |
|
(12.6 |
)% |
| Total
segment revenues |
187,339 |
|
|
208,553 |
|
|
(21,214 |
) |
|
(10.2 |
)% |
|
(21,819 |
) |
|
(10.5 |
)% |
| Other
businesses |
78 |
|
|
125 |
|
|
(47 |
) |
|
(37.6 |
)% |
|
(45 |
) |
|
(36.0 |
)% |
| Total
consolidated revenues |
$ |
187,417 |
|
|
$ |
208,678 |
|
|
$ |
(21,261 |
) |
|
(10.2 |
)% |
|
$ |
(21,864 |
) |
|
(10.5 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________(1) Reflects year over year change as
if the current period results were in “constant currency,” which is
a non-GAAP financial measure. See “Use of Non-GAAP Financial
Measures” above for more information.
| CROCS, INC. SUBSIDIARIES |
| REVENUES BY SEGMENT AND CHANNEL |
| |
|
|
|
|
|
| |
Year Ended December 31, |
|
Change |
|
Constant Currency Change (1) |
| |
2016 |
|
2015 |
|
$ |
|
% |
|
$ |
|
% |
| |
|
| Wholesale: |
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
$ |
202,211 |
|
|
$ |
210,887 |
|
|
$ |
(8,676 |
) |
|
(4.1 |
)% |
|
$ |
(5,555 |
) |
|
(2.6 |
)% |
| Asia
Pacific |
232,541 |
|
|
255,897 |
|
|
(23,356 |
) |
|
(9.1 |
)% |
|
(26,408 |
) |
|
(10.3 |
)% |
|
Europe |
110,511 |
|
|
123,131 |
|
|
(12,620 |
) |
|
(10.2 |
)% |
|
(11,441 |
) |
|
(9.3 |
)% |
| Other
businesses |
745 |
|
|
1,096 |
|
|
(351 |
) |
|
(32.0 |
)% |
|
(352 |
) |
|
(32.1 |
)% |
| Total
wholesale |
546,008 |
|
|
591,011 |
|
|
(45,003 |
) |
|
(7.6 |
)% |
|
(43,756 |
) |
|
(7.3 |
)% |
| Retail: |
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
191,855 |
|
|
197,306 |
|
|
(5,451 |
) |
|
(2.8 |
)% |
|
(5,168 |
) |
|
(2.6 |
)% |
| Asia
Pacific |
125,037 |
|
|
136,320 |
|
|
(11,283 |
) |
|
(8.3 |
)% |
|
(12,077 |
) |
|
(8.9 |
)% |
|
Europe |
42,712 |
|
|
44,873 |
|
|
(2,161 |
) |
|
(4.8 |
)% |
|
(189 |
) |
|
(0.4 |
)% |
| Total
retail |
359,604 |
|
|
378,499 |
|
|
(18,895 |
) |
|
(5.0 |
)% |
|
(17,434 |
) |
|
(4.6 |
)% |
| E-commerce: |
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
72,940 |
|
|
68,017 |
|
|
4,923 |
|
|
7.2 |
% |
|
5,088 |
|
|
7.5 |
% |
| Asia
Pacific |
37,500 |
|
|
32,274 |
|
|
5,226 |
|
|
16.2 |
% |
|
5,741 |
|
|
17.8 |
% |
|
Europe |
20,221 |
|
|
20,829 |
|
|
(608 |
) |
|
(2.9 |
)% |
|
(578 |
) |
|
(2.8 |
)% |
| Total
e-commerce |
130,661 |
|
|
121,120 |
|
|
9,541 |
|
|
7.9 |
% |
|
10,251 |
|
|
8.5 |
% |
| Total
revenues |
$ |
1,036,273 |
|
|
$ |
1,090,630 |
|
|
$ |
(54,357 |
) |
|
(5.0 |
)% |
|
(50,939 |
) |
|
(4.7 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
$ |
467,006 |
|
|
$ |
476,210 |
|
|
$ |
(9,204 |
) |
|
(1.9 |
)% |
|
(5,635 |
) |
|
(1.2 |
)% |
| Asia
Pacific |
395,078 |
|
|
424,491 |
|
|
(29,413 |
) |
|
(6.9 |
)% |
|
(32,744 |
) |
|
(7.7 |
)% |
|
Europe |
173,444 |
|
|
188,833 |
|
|
(15,389 |
) |
|
(8.1 |
)% |
|
(12,208 |
) |
|
(6.5 |
)% |
| Total
segment revenues |
1,035,528 |
|
|
1,089,534 |
|
|
(54,006 |
) |
|
(5.0 |
)% |
|
(50,587 |
) |
|
(4.6 |
)% |
| Other
businesses |
745 |
|
|
1,096 |
|
|
(351 |
) |
|
(32.0 |
)% |
|
(352 |
) |
|
(32.1 |
)% |
| Total
consolidated revenues |
$ |
1,036,273 |
|
|
$ |
1,090,630 |
|
|
$ |
(54,357 |
) |
|
(5.0 |
)% |
|
(50,939 |
) |
|
(4.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________(1) Reflects year over year change as
if the current period results were in “constant currency,” which is
a non-GAAP financial measure. See “Use of Non-GAAP Financial
Measures” above for more information.
| CROCS, INC. SUBSIDIARIES |
| RETAIL STORE COUNTS |
| (UNAUDITED) |
| |
|
|
|
|
|
|
|
| |
September 30, 2016 |
|
Opened |
|
Closed |
|
December 31, 2016 |
| Company-operated retail
locations |
|
|
|
|
|
|
|
| Type |
|
|
|
|
|
|
|
|
Kiosk/store in store |
99 |
|
|
1 |
|
|
2 |
|
|
98 |
|
| Retail
stores |
237 |
|
|
5 |
|
|
14 |
|
|
228 |
|
| Outlet
stores |
218 |
|
|
15 |
|
|
1 |
|
|
232 |
|
|
Total |
554 |
|
|
21 |
|
|
17 |
|
|
558 |
|
| Operating
segment |
|
|
|
|
|
|
|
|
Americas |
191 |
|
|
4 |
|
|
5 |
|
|
190 |
|
| Asia
Pacific |
264 |
|
|
16 |
|
|
10 |
|
|
270 |
|
|
Europe |
99 |
|
|
1 |
|
|
2 |
|
|
98 |
|
|
Total |
554 |
|
|
21 |
|
|
17 |
|
|
558 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
December 31, 2015 |
|
Opened |
|
Closed |
|
December 31, 2016 |
| Company-operated retail
locations |
|
|
|
|
|
|
|
| Type |
|
|
|
|
|
|
|
|
Kiosk/store in store |
98 |
|
|
14 |
|
|
14 |
|
|
98 |
|
| Retail
stores |
275 |
|
|
19 |
|
|
66 |
|
|
228 |
|
| Outlet
stores |
186 |
|
|
50 |
|
|
4 |
|
|
232 |
|
|
Total |
559 |
|
|
83 |
|
|
84 |
|
|
558 |
|
| Operating
segment |
|
|
|
|
|
|
|
|
Americas |
196 |
|
|
7 |
|
|
13 |
|
|
190 |
|
| Asia
Pacific |
261 |
|
|
67 |
|
|
58 |
|
|
270 |
|
|
Europe |
102 |
|
|
9 |
|
|
13 |
|
|
98 |
|
|
Total |
559 |
|
|
83 |
|
|
84 |
|
|
558 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
___________________
| CROCS, INC. SUBSIDIARIES |
| RECONCILIATION OF GAAP TO NON-GAAP 2017
FINANCIAL GUIDANCE |
| (UNAUDITED) |
| (in millions) |
| |
|
|
Selling, general and administrative expenses reconciliation |
|
| GAAP
Selling, general and administrative expenses |
$500
to $505 |
|
One-time charges |
$7 to $10 |
|
Non-GAAP Selling, general and administrative charges |
Approximately $495 |
|
|
|
| CROCS, INC. AND SUBSIDIARIES |
| COMPARABLE STORE SALES |
| RETAIL AND DIRECT TO CONSUMER |
| (UNAUDITED) |
| |
|
| |
Constant Currency (2) |
| |
Three Months Ended December 31,
2016 |
|
Three Months Ended December 31,
2015 |
| Comparable store sales
(retail only) (1) |
|
|
|
| Americas |
(5.6 |
)% |
|
(3.4 |
)% |
| Asia Pacific |
(12.1 |
)% |
|
4.8 |
% |
| Europe |
1.0 |
% |
|
5.7 |
% |
| Global |
(6.8 |
)% |
|
0.1 |
% |
| |
|
|
|
|
|
| |
Constant Currency (2) |
| |
Three Months Ended December 31,
2016 |
|
Three Months Ended December 31,
2015 |
| Direct to Consumer
comparable store sales (includes retail and e-commerce) (1) |
|
|
|
| Americas |
(8.0 |
)% |
|
6.3 |
% |
| Asia Pacific |
(9.6 |
)% |
|
15.2 |
% |
| Europe |
(0.4 |
)% |
|
13.9 |
% |
| Global |
(7.7 |
)% |
|
9.8 |
% |
| |
|
|
|
|
|
| |
Constant Currency (2) |
| |
Year Ended December 31, 2016 |
|
Year Ended December 31, 2015 |
| Comparable store sales
(retail only) (1) |
|
|
|
| Americas |
(2.3 |
)% |
|
(3.2 |
)% |
| Asia Pacific |
(5.9 |
)% |
|
(4.5 |
)% |
| Europe |
(1.9 |
)% |
|
3.0 |
% |
| Global |
(3.0 |
)% |
|
(2.8 |
)% |
| |
|
|
|
|
|
| |
Constant Currency (2) |
| |
Year Ended December 31, 2016 |
|
Year Ended December 31, 2015 |
| Direct to Consumer
comparable store sales (includes retail and e-commerce) (1) |
|
|
|
| Americas |
0.3 |
% |
|
3.3 |
% |
| Asia Pacific |
(0.4 |
)% |
|
3.0 |
% |
| Europe |
0.2 |
% |
|
7.8 |
% |
| Global |
0.1 |
% |
|
3.9 |
% |
| |
|
|
|
|
|
_________________(1) Comparable store status is determined on a
monthly basis. Comparable store sales includes the revenues of
stores that have been in operation for more than twelve months.
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. E-commerce revenues are based on
same site sales period over period.
(2) Reflects year over year change as if the current period
results were in “constant currency,” which is a non-GAAP financial
measure. See “Use of Non-GAAP Financial Measures” above for more
information.
Investor Contacts:
Marisa Jacobs, Crocs Inc.
(303) 848-7322
mjacobs@crocs.com
and
Brendon Frey, ICR
(203) 682-8200
Brendon.Frey@icrinc.com
Media Contact:
Patrick Rich, Crocs, Inc.
(303) 848-7000
prich@crocs.com
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