Crocs Posts Tripling of Q2 Profit, Raises Guidance

Shares of shoe manufacturer Crocs Inc. surged 15% to close at $58.15 in AH trading Thursday after the company posted a solid Q2 earnings beat and boosted its Q3 and full-year outlooks well beyond Street expectations. For Q2, Crocs posted $224.3 million in revenue, a 162% rise from the year-ago quarter's $85.6 million. The company earned $48.5 million ($0.58/share) in the quarter versus $15.7 million ($0.19) last year. Analysts were expecting EPS of $0.44 on revenue of $192.7 million. For Q3, the company is forecasting revenue of $240-250 million and EPS of $0.58-0.62 on a "better than anticipated" order book. The Street had been expecting Q3 profit of $0.43 on sales of $195.9 million. For full-year 2007, Crocs raised guidance to $810-820 million in revenue and $1.89-1.93 in EPS, up from $670-680 million in revenue and split-adjusted EPS of $1.45-1.48. The new forecasts comfortably surpass prior analyst expectations of $1.56 in EPS on revenue of $712.2 million. Crocs attributes its strong performance to new styles, better distribution, and licensing deals to use the logos of Major League Baseball, Marvel Comics and others. "We are confident that our efforts to further evolve the Crocs brand, first in the U.S. and now overseas…has us well-positioned to capitalize on our near-term opportunities while delivering long-term growth and opportunities in the years ahead," said CEO Ron Snyder.

Sources: TheStreet.com, AP I, II, Wall Street Journal, Bloomberg, MarketWatch
Commentary: Don't Get Caught With Your Crocs Down • Crocs Not Yet Priced For Perfection • The Crux of Crocs' Valuation
Stocks/ETFs to watch: CROX. Competitors: DECK, NKE, TBL. ETFs: JKK

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