Repositioning pays off for Crocs
21/02/2013
However, it suffered a loss in the fourth quarter due to one-time expenses linked to “contingency accruals” and updating its systems.
Crocs CEO John McCarvel commented: “Our strong performance in 2012 reflects our ongoing investment in our multi-channel strategy. We saw revenue growth during 2012 of 14% on a constant currency basis, while also approaching a record 50 million units and increasing average selling prices."
Gross profit for 2012 was $608 million, or 54.1% as a percentage of sales, compared with $536.4 million in 2011.
For fourth quarter, the company had a net loss of $3.6 million, compared with net income of $5.6 million in the 2011 period. “This was due to non-cash expenses of $5.9 million for contingency accruals, which adversely impacted selling, general and administrative expenses by $2.2 million and cost of goods sold by $3.7 million. In addition, in the 2012 period, the company had total expenses of $1.5 million relating to its implementation of a new ERP [enterprise resource planning] system.”
The new system is expected to launch in the first half of 2014.
Crocs new spring-summer lines include moulded boat shoes and a women’s wedge line.
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