12 Months Of Cooperation With Balenciaga And Other Luxury Goods Shoes Have Soared 1.6 Times.

Crocs and designer brand Christopher Kane's expensive cooperation series

May 9, 2018: Crocs Inc. (NASDAQ:CROX), Carlo NASDAQ:CROX released a 8.5% jump in its first quarter results after its market expectations.

Although the group is in the stage of restructuring the store portfolio, its revenue in the first quarter was 5.7% year-on-year, up from $267 million 900 thousand in the same period last year to $283 million 100 thousand, which is better than the $272 million expected in the market.

Crocs Inc., President and CEO of Andrew Rees, said in a conference call after the earnings report that the current retail network has been reduced to 425 stores from 558 stores at the end of 2016, and 22 stores have been closed during the first quarter. The ultimate goal is to keep the scale below 400 stores.

Over the past year, management has also embarked on products to enhance its brand image by launching high-end designs with women actress Drew Barrymore, and joint luxury brands such as Christopher Kane and Balenciaga.

In the first quarter of this year, Crocs Inc., Carlo. Carlo's retail sales grew by 7.6%, but retail sales fell 6.4% year-on-year due to the shrinking sales network.

The wholesale channel, which contributed nearly 70% of the revenue to the group, was affected by the weakness of the Asian market and only recorded a 0.7% growth, accounting for 10% of the 19.1% increase in e-commerce.

Gross margins fell by 50 basis points to 49.4%, thanks to strict management of inventory control, inventories decreased by 17% to $148 million 200 thousand a year.

Net profit surged 75% to 12 million 520 thousand dollars a year, and EPS increased from 0.08 US dollars to 0.15 US dollars in the same period last year.

The adjusted EPS is $0.16, which is 1/3 higher than the market forecast of US $0.12.

A series of expensive cooperation between Crocs and Balenciaga

Andrew Rees said in its earnings report that this year it was strong, and all the performance indicators were better than expected in the first quarter.

He disclosed last quarter to analysts.

26% of the sales came from sandals, representing an increase of 22% over the same period last year.

Sales increased by 26% in the same period last year, which further increased 21% in the previous quarter.

Share potential.

Crocs Inc. has increased its annual performance expectations. Now it expects revenue to achieve a low single digit growth, which was expected to be roughly 1 billion 23 million 500 thousand US dollars in fiscal year 2017. E-commerce and wholesale growth will be offset by the decline caused by other changes in customs clearance measures and business models.

The SG&A budget increased from $475 million to $485 million. To simplify business and improve profitability, the group decided to close manufacturing plants and distribution centers in Mexico. It is expected to generate a cost of $5 million in the two quarter.

The outlook for net profit in the year is maintained at $50 million, and $17 million 300 thousand in fiscal year 2017.

Crocs Inc. (NASDAQ:CROX), on Tuesday, closed at $16.21, an increase of 7% throughout the day, and its cumulative increase since 2018 has expanded to 25%.

Investors also bought the group's cost cutting, strengthening product composition and brand information and improving the quality of its revenue, which has surged 161.5% in the past 12 months.