Crocs go up

Crocs reported a record of its third quarter financial results of fiscal year 2007. Revenues for the quarter ended September 30, 2007 increased 130% to $256.3 million compared to $111.3 million for the quarter ended September 30, 2006. Net income for the quarter ended September 30, 2007 was $56.5 million, or $0.66 per diluted share, compared to $21.5 million, or $0.27 per diluted share, for the quarter ended September 30, 2006. Net income per diluted share amounts for the third quarters of 2007 and 2006 are adjusted to reflect the two-for-one stock split that took effect in June 2007. Gross profit for the third quarter of 2007 was $155.4 million, or 60.6% of revenues, compared to $64.8 million, or 58.2% of revenues for the third quarter of 2006. Selling, general and administrative expenses for the quarter ended September 30, 2007 was $77.2 million, or 30.1% of revenues, compared to $33.3 million, or 29.9% of revenues in the quarter ended September 30, 2006.

Crocs continued to experience strong global demand throughout the Summer, which translated into third quarter sales growth of 130% over the year ago period. At the same time, they expand gross margins 240 basis points to 60.6% and increased earnings per diluted share 144% to a record $0.66. With the opening of a new 320,000 square foot European distribution facility Crocs will be able to support their future growth in the region.

For the year ending December 31, 2007, Crocs raised its guidance. The Company now projects revenues to range from $820 to $830 million and net income per diluted common share of between $1.94 and $1.98.

The Company also introduced fiscal year 2008 guidance. Crocs currently anticipates revenues and net income per diluted share to increase between 35% to 40% over the projected 2007 levels.