Crocs Loss Widens, But Beats View; Shares Up 7%

(RTTNews) - Footwear maker Crocs Inc. (CROX), Thursday reported a loss for the fourth quarter that widened from a year ago, hurt largely by one-time charges. Nonetheless, loss for the quarter were less than what Wall Street expected, even as revenues beat estimates. Shares of Crocs are currently up seven percent on the Nasdaq.

Niwot, Colorado-based Crocs' fourth-quarter loss widened to $66.9 million or $0.76 per share from $3.6 million or $0.04 per share a year ago. Results for the quarter include $49.2 million in non-recurring, unusual and infrequent charges.

Adjusted net loss for the period was $17.7 million or $0.20 per share. On average, nine analysts polled by Thomson Reuters expected a loss of $0.22 per share for the quarter. Analysts' estimates typically exclude special items.

Crocs, well known for its colorful clogs, said its fourth-quarter revenues grew 1.6 percent to $228.7 million. On a constant currency basis, revenue rose 4.1 percent. Nine analysts had a consensus revenue estimate of $221.24 million for the quarter.

Chief Executive John McCarvel said, "We delivered balanced performance in the fourth quarter despite the challenging retail environment in North America."

Last November, there were speculative reports that Crocs was considering a move to go private among other options, as the company has been struggling with sharp decline in revenues with waning demand for its clogs in the Americas and Japan.

Nevertheless, in late-December, Crocs received an investment of $200 million from private equity firm Blackstone Group (BX).

For the first quarter, the company said it expects revenue between $305 million and $315 million. Analysts currently estimate revenues of $322.37 million for the quarter.

Crocs chairman Thomas Smach said, "As we look forward, 2014 will be a significant transition period for the company. We will recruit a new CEO who will work with the reconstituted board to refine the company's short-term and long-term strategic plans, which will include prioritizing earnings over top-line growth. We will focus on improving financial performance, particularly in the Americas and Japan, as well as enhancing our global retail execution."

As earlier announced, CEO McCarvel intends to retire as president, chief executive officer and board member by April 30.

CROX is currently trading at $16.12, up $1.07 or 7.11%, on a volume of 1.5 million shares.