Crocs (CROX) Reports Q3 Results

Crocs (CROX 5.76 -1.08) reported third quarter earnings results of $0.25 per share, which may not be comparable to the First Call consensus of ($0.08).

Revenues rose 1.7% year-over-year to $177.1 million vs. the $156.4 million consensus. Third quarter 2009 net income includes the effects of the following: $9.6 million gross margin impact related to sales of product that had been previously impaired -- $1.0 million gain from foreign currency exchange rate fluctuations during the 2009 third quarter, and -- $14.4 million one-time tax benefit related to a change in the Company's corporate tax structure. On a non-GAAP basis, the company reported earnings per share of $0.01.

For the fourth quarter, the company issued in-line guidance of ($0.20)-($0.15) vs. ($0.16) consensus and guided revenue of $110 million to $115 million vs. the $113.62 mln consensus.

The company said, "While we are encouraged by our top-line growth and return to profitability in the quarter, the normal seasonality of our business will make it difficult to maintain profitability in the fourth quarter. However, future wholesale bookings for the spring 2010 line are strong in all regions. When coupled with the launch of our new, targeted marketing programs, this provides us with increased confidence that we will return to profitability during 2010. In the meantime, we will continue to invest in the products, systems, processes and customer relationships necessary to deliver the best long-term results."