Crocs’ online sales grow strongly while total sales slump
March 2, 2016 02:12 PM
Online sales grew double digits year over year for footwear manufacturer Crocs Inc., a bright spot in a year when total sales fell and losses surged.
Crocs, No. 240 in the Internet Retailer 2015 Top 500 Guide, reported online sales of $121.1 million in fiscal 2015, up 15.6% from $104.8 million last year. E-commerce now accounts for 11.1% of the company’s sales, compared to 8.7% last year. Total sales fell 8.9% to $1.09 billion from $1.198 billion in the previous year.
“Our e-commerce business continues to benefit from better execution, including enhanced digital marketing efforts, a better product assortment and commitment to better in-stock positions on core product,” Crocs president Andrew Rees told analysts on the company’s Q4 2015 earnings call, according to a transcript from Seeking Alpha.
Despite growth in e-commerce, losses have mounted. Crocs reported a net loss of $83.2 million during fiscal 2015, nearly 17 times greater than the loss of $4.9 million last year.
Rees told analysts the company is investing to fix its supply chain inefficiencies as part of a turnaround effort.
For the fourth quarter ended Dec. 31, Crocs reported:
- Net revenue of $208.7 million, up 1.1% from $206.5 million in the year-ago quarter.
- Total online sales of $36.7 million, up 28.8% from $28.5 million.
- Online sales in the Americas region of $22.2 million, up 30.6% from $17.0 million.
- E-commerce accounted for 17.6% of revenue during the quarter, compared to 13.8%.
- Direct-to-consumer comparable-store sales (includes e-commerce and retail locations) gains of 6.3% in the Americas region, compared to a 2.7% decline.
- Direct-to-consumer global comparable-store sales (includes e-commerce and retail locations) gains of 9.8%, compared to a gain of 0.5%.
- A net loss of $70.2 million, down 32.2% from $53.1 million.
For 2015, Crocs reported:
- Net revenue of $1.091 billion, down 8.9% from $1.198 billion last year.
- Online sales in the Americas region of $68.0 million, up 23.2% from $55.2 million last year.