Classic Easy To Wear Comfortable "Cave Shoes" Crocs Re Glittering Retail Sector

Although the popularity is far less than that of the 00 age, the "Crocs" Inc. (NASDAQ:CROX) Crocco's performance in the past two years has been resurgent in the retail industry.

In the first quarter of March 31st, its net profit nearly doubled from $12 million 523 thousand to $24 million 710 thousand, and EPS increased from $0.15 in the same period last year to $0.33, adjusted 0.36 US dollars, significantly exceeding Zacks's expected US $0.25.

During the reporting period, the group's revenue grew by 4.5%, from $283 million 100 thousand to $295 million 900 thousand, exceeding the company's expected 2.80-2.90 billion, which also exceeded Zacks's expected $287 million 900 thousand.

Under the expected performance, Carlo's annual revenue growth was expected to grow at 5 -7% to $1 billion 88 million 200 thousand and 49.5% of gross profit margin, but the company announced an increase of $500 million in share repurchase authorization.

The current two quarter revenue is expected to be $3.50 -3.60 billion, the median is slightly better than Zacks's expected $352 million 500 thousand, and gross profit margin is expected to fall 51% basis points by year, reflecting the negative impact of 120 base points of the new distribution center, the adverse exchange rate effects of 150 base points, and the impact of 160 base points on freight and sales costs.

On Tuesday, when its first quarter results and its stock repurchase increase authorization scheme were launched, kromet sharply raised 5.86% to 30 U.S. dollars. The highest level in the morning market rose to 9.07% at the highest value of $30.91, but the US stock index's three largest stock index fell by about 2% a day. It fell by 4.94% to $26.94, narrowing this year's growth to 3.70%, and substantially running the same stock index. But in the past month, kromet rose more than 66%, which is one of the best performing companies in the US stock market.

Andrew Rees, chief executive of Crocs, said that as the market continued to meet the demand and brand enthusiasm of "cave shoes", it began a good start in 2019. The revenue exceeded the company's expectations. He was especially happy that the DTC channel was stronger than before until Easter, and the canal continued to grow for the five consecutive quarter.

In the first quarter of the fixed exchange rate, the group's revenue growth doubled to the actual growth rate of 9%, and the closing period affected 6 million US dollars in sales.

In the core wholesale business period, revenue grew by 5.2%, electricity sales increased by 16.5%, and sales of direct outlets increased by 8.7%.

The Americas market is still an important reason for the strong recovery of "cave shoes". The direct sales channel of the same outlets increased further to 12.4% on the basis of the 10.9% surge in the same period last year, and the same market sales in the EMEA market also soared 9.3%, while the same period last year showed a negative performance. Only by the Chinese consumers who had no brand loyalty, the same store sales in the Asia Pacific market decreased by 0.4%, but the growth rate was 4.7% in the same period last year.

If we calculate the performance of direct online channels, DTC sales will increase by 12.2% in the first quarter, including 15.3%, 1.9% and 19.2% in the Americas, Asia Pacific and Europe respectively.

The gross profit margin of 46.5% was lower than that of 49.4% in the same period last year, but it was 45.5% higher than the previous expected 100 basis points.

Excluding the negative impact of the relocation of the new distribution center on 40 base points, the gross profit margin decreased by 250 basis points to 46.9% after the adjusted quarter, while freight costs and unfavorable exchange rates were the main factors.

Operating profit increased by 25.7% to $32 million 578 thousand in the first quarter, compared with $25 million 922 thousand in the same period in 2018, and the operating profit margin increased by 170 basis points to 11.7% after adjustment.