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Web sales increase for Crocs in 2012, but dip in the fourth quarter
Overall sales and net income grow for the year.
Topics: Amazon.com Inc., annual results, Asia, Crocs, Crocs Inc., e-commerce, earnings, Europe, financials, footwear, John McCarvel, North America, online sales, quarterly results, shoes, Top 500, wholesale
2012 was a positive sales year for footwear manufacturer Crocs Inc.
For the year ended Dec. 31, Crocs, No. 183 in the Internet Retailer Top 500 Guide, reported:
- Online sales increased 7.0% to $102.6 million from $95.9 million.
- Web sales for North America grew 6.8% to $63.2 million from $59.2 million in 2011.
- Web sales for Asia increased 45.5% to $16.0 million from $11.0 million.
- Web sales for Europe decreased 8.6% to $23.5 million from $25.7 million.
- Wholesale revenue increased 7.9% to $645.9 million from $598.4 million in 2011.
- Same-store sales grew year over year 1.5%.
- Total sales of $1.12 billion, a 12% increase from $1.00 billion in 2011.
- Net income of $131.3 million, a 16.4% increase from a net income of $112.8 million in 2011.
Online sales accounted for 9.2% of overall sales in 2012 compared with 9.6% in 2011.
Part of the explanation for the dip in Internet sales as a percent of total sales is the increase in wholesale sales, says John McCarvel, CEO and president. Crocs sells its products to retailers that sell online like Amazon.com Inc., No. 1 in the Top 500, and others, which picked up this year, McCarvel told analysts during the company’s year-end earnings call. Sales through those channels count as wholesale revenue, he says. “They sold a lot of product at a more heavily discounted price,” he said.
For the fourth quarter, Crocs reported:
- Web sales of $25.0 million, a 2.0% decrease from $25.5 million in the fourth quarter of 2011.
- Web sales for North America decreased 13.2% to $16.5 million from $19.0 million.
- Web sales for Asia increased 60.9% to $3.7 million from $2.3 million.
- Web sales for Europe increased 16.7% to $4.9 million from $4.2 million.
- Same-store sales decreased 3.5%.
- Total sales of $225.0 million, a 10.5% increase from $203.7 million in the fourth quarter of 2011.
- A net loss of $3.6 million, compared with a year-earlier profit of $5.6 million.
Online sales accounted for 11.1% of overall fourth quarter sales, compared with 12.5% in the same quarter a year ago.