Stock Monitor: Foot Locker Post Earnings Reporting

LONDON, UK / ACCESSWIRE / June 14, 2018 / If you want access to our free earnings report on Crocs, Inc. (NASDAQ: CROX), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CROX. Crocs reported its first quarter fiscal 2018 operating and financial results on May 08, 2018. The shoe Company outperformed top- and bottom-line expectations. Additionally, the Company provided guidance for the upcoming quarter and fiscal year. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Foot Locker, Inc. (NYSE: FL), which also belongs to the Consumer Goods sector as the Company Crocs. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Crocs most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the three months ended March 31, 2018, Crocs' revenues were $283.1 million, growing 5.7% over Q1 2017 revenue of $267.9 million, ahead of analysts' estimate of $272 million. Top-line growth was achieved despite the loss of approximately $12 million due to operating fewer stores and business model changes. Ecommerce grew 24.1%, wholesale grew 6.5%, and the retail channel delivered positive comparable store sales of 7.6%.

During Q1 2018, Crocs' gross margin was 49.4%, declining 50 basis points (bps). At the beginning of the reported quarter, the Company changed its inventory costing methodology from average cost to first-in-first-out (FIFO). This change resulted in a timing-related charge to cost of sales in Q1 2018. Excluding this charge, Crocs' gross margin for Q1 2018 would have been up modestly compared to prior year.

For Q1 2018, Crocs' selling, general, and administrative expenses (SG&A) were $114.0 million compared to $118.0 million in Q1 2017. As a percent of revenues, the Company's SG&A improved 380 basis points and represented 40.2% of revenues. Crocs' Q1 2018 results included $2.5 million of non-recurring charges associated with the Company's SG&A reduction plan compared to $2.2 million in the prior year's same quarter.

In Q1 2018, Crocs' income from operations was $25.9 million, surging 66.4% compared to $15.6 million in Q1 2017.

Net income attributable to Crocs' common stockholders was $12.5 million, or $0.15 per diluted share, in Q1 2018 compared to $7.2 million, or $0.08 per diluted share, in Q1 2017. The Company's reported numbers beat Wall Street's estimates of $0.12 per share.

Balance Sheet and Cash Flow Details

Crocs' cash used in operating activities decreased 6.6% to $46.6 million in Q1 2018 compared to $49.9 million during Q1 2017. As of March 31, 2018, Crocs' cash and cash equivalents increased 14.7% to $102.0 million compared to $88.9 million as of March 31, 2017. This growth reflected the successful execution of the Company's strategic objectives along with improved working capital management.

As of March 31, 2018, Crocs' inventory declined 17.0% to $148.2 million as of March 31, 2018, compared to $178.5 million as of March 31, 2017, reflecting the Company's continued focus on inventory management. The Company's capital expenditures were $1.7 million in the reported quarter compared to $5.4 million in the year earlier corresponding quarter, as the Company opened fewer stores, completed fewer store remodels, and incurred lower technology-related expenditures.

During Q1 2018, Crocs repurchased 1.4 million shares of its common stock for $20.1 million, at an average price of $14.32 per share. At March 31, 2018, $198.8 million of the Company's $500 million share repurchase authorization remained available for future share repurchases.

Closure of Company-Operated Mexico Manufacturing and Distribution Facilities

Crocs announced that it in connection with ongoing efforts to simplify the business and improve profitability, it has made the decision to close its manufacturing and distribution facilities in Mexico. The Company noted that manufacturing has ceased, and the distribution center will be closed by the end of Q3 2018.

Financial Outlook

With respect to the second quarter of 2018, Crocs is forecasting revenues of $315 million to $325 million compared to $313.2 million in Q2 2017. The Company is expecting gross margin to be slightly above 54.2% rate in the year ago same period.

With respect to full year 2018, Crocs is projecting revenues to increase low single digits over FY17 revenues of $1.02 billion, as the Company expects double digit e-commerce growth and moderate wholesale growth to more than offset lower retail revenues due to operating fewer stores and business model changes.

For FY18, Crocs is estimating gross margin to be up approximately 70 to 100 bps over 2017 gross margin of 50.5%. The Company's income from operations is expected to be approximately $50 million compared to $17.3 million in 2017.

Stock Performance Snapshot

June 13, 2018 - At Wednesday's closing bell, Crocs' stock fell 3.46%, ending the trading session at $18.67.

Volume traded for the day: 1.03 million shares, which was above the 3-month average volume of 1.02 million shares.

Stock performance in the last month ? up 21.87%; previous three-month period ? up 31.57%; past twelve-month period ? up 154.36%; and year-to-date ? up 47.71%

After yesterday's close, Crocs' market cap was at $1.28 billion.

Price to Earnings (P/E) ratio was at 1436.15.

The stock is part of the Consumer Goods sector, categorized under the Textile - Apparel Footwear & Accessories industry.

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