Crocs (CROX) Q4 Earnings and Revenues Surpass Estimates
Zacks Investment Research | Feb 24, 2021 12:38AM ET
Crocs (NASDAQ:CROX), Inc. industry ’s growth of 4%.
Crocs’ adjusted earnings came in at $1.06 during fourth-quarter 2020, surpassing the Zacks Consensus Estimate of 82 cents. Moreover, the figure surged significantly from 12 cents in the year-ago quarter.
Revenues increased 56.5% (56.1% in constant-currency) to $411.5 million in the reported quarter and exceeded the Zacks Consensus Estimate of $394 million. Wholesale and retail revenues improved 52.2% and 40.9% year over year, respectively. Solid performance in the Americas and the EMEA region along with healthy demand in its key products, including Clogs, Sandals, Jibbitz and Visible Comfort technology, drove the top line. Apart from these, e-commerce grew 92% year over year in the quarter under review, marking the 15th successive quarter of double-digit growth.
The company’s adjusted gross profit advanced 27.9% to $230.6 million. Moreover, adjusted gross margin expanded 670 basis points (bps) to 56% on the back of a favorable product mix along with fewer promotional activities and discounts.
Also, adjusted SG&A expenses grew 23.1% to $143.6 million in the fourth quarter. Meanwhile, adjusted SG&A, as a percentage of sales, contracted 950 bps to 34.9%.
Adjusted operating income came in at $87 million, up from $12.9 million in the last-year quarter. Moreover, adjusted operating margin expanded to 21.1% from the prior-year quarter’s 4.9%. The uptick can be attributable to lower SG&A costs, robust sales and improved gross margins.
h3 Segments at a Glance/h3Total revenues in the Americas region were up 99.2% (100.5% at constant currency) to $310.3 million in the fourth quarter. Also, revenues in the EMEA region came in at $49.4 million, increasing 14.9% (11.4% in constant-currency) year over year. However, the Asia-Pacific region witnessed a revenue decline of 19.5% (22.1% at constant-currency) to $51.8 million.
h3 Financial Details/h3Crocs ended 2020 with a cash balance of $135.8 million. The company generated $266.9 million in cash from operating activities. Further, it incurred capital expenditures of $42 million and the metric is expected to be roughly $100-$130 million in 2021.
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Further, it repurchased 1.7 million shares worth $131.7 million under its $1-billion share repurchase plan. As of Dec 31, 2020, management has $337.8 million remaining in its existing share repurchase program.
The company also has $180 million available for borrowing under its credit facility as of Dec 31. This brings the liquidity level to $319.4 million, which is likely to help the company stay afloat amid this pandemic.
Crocs, Inc. Price, Consensus and EPS Surprise
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