Crocs' revenues reached $295.9 million in the first quarter ended on March 31, growing by 4.5 percent from the first quarter of 2018, or by 9 percent on a constant-currency basis, despite the negative impact of store closures and changes in the business model, which reduced revenues by around $6 million, the company said.
The management said in a release that revenues exceeded expectations, emphasizing that the company had now delivered five consecutive quarters of double-digit direct-to-consumer growth on a same-store basis. The growth in revenues was largely driven by the e-commerce channel, which posted a 16.5 percent increase, while the retail channel rose by 8.7 percent on a same-store basis and wholesale revenues grew by 5.2 percent.
The quarterly net income of $24.7 million was about double the level of $12.5 million reached in the first quarter of 2018. The gross margin reached 46.5 percent, higher than the company's guidance of 45.5 percent and down from 49.4 percent in last year's first quarter. Among the factors that negatively impacted the gross margin, the company mentioned currencies, extra freight costs and distribution center costs.
For 2019, the company continues to expect revenues to be up by between 5 and 7 percent versus 2018 revenues of $1,088.2 million. The company anticipates that they will be negatively impacted by around $25 million from currency changes and around $20 million resulting from store closures.
The revenues grew by 4 percent in the Americas and by 12 percent in EMEA, but they were flat in the Asia-Pacific region.
In terms of products, sales of clogs grew by 12 percent in the quarter, making up 55 percent of total footwear sales, and some core styles and colors sold out completely.
Aided by the new LiteRide cushioning technology and the new Reviva molded air bubble footbeds, sales of sandals went up by 12 percent as well, representing 27 percent of the turnover.