Crocs blames competitive pressures for a Q1 drop in web sales
May 6, 2013 03:03 PM
Crocs Inc., the retailer and manufacturer of clogs and other casual footwear, says first quarter Internet revenue decreased 6.2% year over year in its Americas region and 3.0% in Europe. Total global web sales fell by 1.2% despite gains of 14.4% in Japan and 51.9% in the rest of Asia-Pacific.
Total revenue increased 14.7% in the first quarter end March 31. Internet sales accounted for 6.5% of total revenue, down from 7.6% a year earlier. Crocs is No. 196 in the Internet Retailer Top 500 Guide.
John McCarvel, Crocs president and CEO, attributes the rise in total revenue to the company’s multichannel retail strategy, global reach and its focus on “innovative” products that feature the company’s proprietary Croslite material for lightweight, odor-resistant footwear. But the company’s Internet revenue declined in most markets because of competition that has forced Crocs to give constant discounts or free shipping, he said in a conference call with investment analysts, according to a transcript of the call from Seeking Alpha.
Crocs reported for the first quarter ended March 31:
● Global Internet revenue declined 1.2% year over year to $20.282 million from $20.534 million;
● Americas Internet revenue declined 6.2% to $11.921 million from $12.705 million a year earlier;
● Internet revenue in Europe declined 3.0% to $5.124 million from $5.281 million;
● Asia-Pacific Internet revenue rose 51.9% year over year to $1.306 million from $860,000;
● Internet revenue in Japan rose 14.4% year over year to $1.931 million from $1.688 million;
● Global wholesale revenue increased 15.5% to $220.283 million from $190.692 million a year earlier;
● Total revenue jumped 14.7% year over year to $311.656 million from $271.798 million;
● Comparable-store sales fell across all regions except Asia-Pacific, where they rose 7.8%. They fell 5.2% globally, 10.3% in the Americas, 7.3% in Europe and 5.8% in Japan;
● Net income rose 2.2% year over year to $28.961 million from $28.346 million.