Crocs posts 42-percent slide in 2Q profit

NIWOT — Shoemaker Crocs Inc. (Nasdaq: CROX) on Thursday reported a decline in profits for its second quarter that ended June 30 compared with the same period a year ago.

The Niwot-based company posted a profit of $13.4 million on sales of $347.7 million for the quarter, compared with a profit of $23.3 million on sales of $376.9 million for the second quarter of last year.

Earnings per share for the quarter was 11 cents, a decline from 19 cents per share for the same period a year ago.

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“We delivered second-quarter sales in line with expectations,” Gregg Ribatt, Crocs’ chief executive, said in a prepared statement. “Our business continues to stabilize around the globe, and we believe the strategy the company outlined last July is positioning Crocs for sustained success in the future. We were particularly pleased to see global e-commerce revenue increase nearly 30 percent on a constant currency basis.

“We are confident that the strategic shift to focus the organization on a narrower range of businesses, fewer retail stores and reduced geographic footprint will lead to improved results in the future.”

Ribatt said he expects third-quarter revenue in the $280 million to $290 million range, compared with $302 million last year.

For the first six months of the year, sales totaled $607.9 million, down from $689.3 million for the same period last year. Profit dropped 66 percent, from $32.4 million for the first six months of 2014 to $11 million so far this year.

The company repurchased 1.6 million shares of common stock in the second quarter at an average price of $14.62. The company ended the quarter at 75.8 million common shares outstanding. Crocs’ stock was trading at $15 per share mid-day Thursday.

Cash and cash equivalents at June 30 were $197.3 million. Inventory was $182.6 million compared with $171 million on Dec. 31.