Marketing investments put Crocs on the path to online sales growth in Q2
August 5, 2015 11:14 AM
Increased investments in marketing helped footwear manufacturer Crocs Inc. blaze a trail to double-digit increases in global traffic and e-commerce sales in two of three markets.
Crocs, No. 240 in the Internet Retailer 2015 Top 500 Guide, reported overall online sales of $37.7 million in Q2 2015, up 21.2% from $31.1 million during the same period last year, with traffic to all of the company’s web properties growing 20% year over year. Keying that growth was a sharp uptick in sales in the Asia Pacific region, where online sales jumped to $10.835 million, up 49.2% from $7.260 million during the same period last year.
In the Americas, online sales grew to $19.560 million, up 28.4% from $15.231 million during the same period last year. Online sales gains globally and domestically represent a change in e-commerce fortunes for Crocs from the first quarter, when overall sales fell 11.7% globally and 4.0% domestically.
“In our six core markets our e-commerce benefitted most directly from our investment in marketing,” Crocs president Andrew Rees told analysts on the company’s earnings call, according to a transcript obtained from Seeking Alpha.
“Q2 e-commerce results, which can be attributed to our improved marketing as well as operational improvements in our online customer experience and in stock position, tell us we're making the right moves from a marketing perspective,” added CEO Gregg Ribatt.
For the second quarter ended June 30, Crocs reported:
- Retail sales in the Americas of $58.309 million, down 3.8% from $60.622 million during the same period last year.
- Overall retail sales of $118.729 million, down 13.5% from $137.218 million during the same period last year.
- Total revenue of $345.671 million, down 8.3% from $376.920 million during the same period last year.
- Net income of $13.4 million, compared with $23.3 million during the same period last year.
For the first six months of fiscal 2015, Crocs reported:
- Online sales in the Americas of $29.536 million, up 15.4% from $25.595million during the same period last year.
- Global online sales of $55.004 million, up 8.6% from $50.664 million during the same period last year.
- Total revenues of $607.864 million, down 11.8% from $689.349 million during the same period last year.
- Net income of $11.0 million compared to $32.4 million during the same period last year.