NIWOT — Crocs Inc. (Nasdaq: CROX) on Wednesday reported an increase in profit despite a decline in revenue for its first quarter that ended March 31.
The Niwot-based maker of casual footwear posted a profit of $7.2 million, or 8 cents per share, compared with a profit of $6.4 million and 7 cents per share during the same period a year ago.
Revenue for the quarter was $267.9 million, down 4 percent compared with the first quarter last year.
“Customers responded favorably to our spring/summer 2017 product, enabling us to achieve revenues that exceeded our guidance, while simultaneously driving gross-margin improvements,” Gregg Ribatt, Crocs’ chief executive, said in a prepared statement.
He said the company closed 16 company-operated stores during the first quarter and signed agreements to transfer 24 company-operated stores to distributors during the second quarter of 2017.
Crocs has entered into agreements transferring certain company-operated stores in the Middle East and China to distributors. In the Middle East, The Apparel Group will assume responsibility for all 13 of Crocs’ company-operated stores and will become the exclusive distributor in several countries in the region. In China, Crocs has agreed to transfer 11 company-operated stores to existing distributors.
The company expects second-quarter revenue to be between $305 million and $315 million. Crocs expects revenue to be down slightly for 2017 because of the agreements.
“While these transactions will reduce retail revenues, they advance our strategic objective to reduce the number of company-operated stores and to partner with strong distributors that are well positioned to help us profitably grow our business,” Ribatt said.
Crocs’ stock was trading at $7.12 per share mid-day Wednesday. Its 52-week range is from $5.93 to $12.54.