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The shoe manufacturer’s sales in the Americas dropped 5.5% in Q2 2014 compared with Q2 2013.
The brightly colored shoes of Crocs Inc. might have seen their day in the Americas region. Web sales in the Americas dropped 5.5% year over year in the second quarter at Crocs to $15.2 million from $16.1 million. In the first six months of 2014, web sales decreased 8.7% in the Americas to $25.6 million from $28.0 million in the first six months of 2013. Crocs is No. 219 in the 2014 Internet Retailer Top 500 Guide.
But Crocs had a strong quarter in the Asia-Pacific region outside of Japan with 42.3% growth from $3.6 million to $5.1 million. Overall, web sales increased 2.9% for the retailer, from $30.2 million to $31.1 million. As a percentage of total retail sales, total worldwide Q2 web sales fell to 22.6% in the second quarter from 22.8% a year earlier, as total retail sales, including stores and kiosks, increased 3.7% to $137.2 million from $132.3 million.
The disparity in performance led the retailer to come up with a plan to focus on the regions and products that are profitable. “We are refocusing our global company-owned e-commerce efforts to keep 11 of our current 21 sites that drive a vast majority of our profitable online sales,” said Crocs president Andrew Rees in a conference call with investors today. “This is part of an overall effort to focus our investments and energies where we can drive profitable growth.”
Crocs also reported for the second quarter ended June 30:
● A 2.2% rise in web sales in Europe to $8.561 million from $8.378 million
● A 3.7% increase in web sales in Japan to $2.170 million from $2.092 million
● Wholesale sales in the Americas fell 4.9% to $65.715 million from $69.089 million
● Total combined retail and wholesale revenue rose 3.6% to $376.920 million from $363.827 million
For the six months ended June 30, Crocs reported:
● A drop of 98.7% in web sales in the Americas region to $25.595 million from $28.046 million
● A 40.0% rise in web sales in Asia Pacific to $6.839 million from $4.884 million
● A 5.1% rise in web sales in Europe to $14.187 million from $13.502 million
● An increase of 0.5% in web sales in Japan to $4.043 million from $4.023 million
● Total retail sales, including stores and kiosks, increased 4.6% to $212.778 million from $203.380 million
● Wholesale sales in the Americas dropped 9.8% to $135.890 million from $150.693 million
● Total worldwide wholesale sales rose 1.0% to $425.907 million from $421.648 million
● Total combined retail and wholesale revenue rose 2.1% to $689.349 million from $675.483 million