Buoyed by new products and a push into international markets, Crocs Inc. said Tuesday that fourth-quarter earnings increased to $20.8 million, or 51 cents a share. The Niwot-based shoemaker had earnings of $4.17 million, or 12 cents a share, in the fourth quarter of 2005.
Crocs, which went public slightly more than a year ago, has extended its reach into 80 countries.
“I can confidently say there isn’t one market around the world that hasn’t embraced the Crocs brand and isn’t performing at or above initial expectations,” Crocs president and chief executive Ron Snyder told analysts in a conference call.
Sales of the company’s Disney and collegiate-licensed lines have also exceeded expectations.
“We are extremely pleased at the early performance of these new growth vehicles, which bode well as we prepare to further evolve and expand our licensing program,” Snyder said.
Crocs raised its guidance for 2007, and Snyder said the company plans to expand its nonfootwear business. Those lines now include Crocs-branded clothing and Jibbitz, accessories that snap into the holes in Crocs shoes. Additionally, the company recently acquired a maker of hockey and lacrosse gear.
Crocs has diversified its shoe business as well, adding a variety of new models.
The company said it expects first-quarter revenues to range from $113 million to $117 million with net income per diluted share ranging from 47 cents to 49 cents. The company raised its fiscal 2007 growth targets to 45 percent over 2006.
Separately, Crocs said it has entered into licensing agreements or letters of intent with several NASCAR racing teams, including Dale Earnhardt Inc., Hendrick Motorsports, Joe Gibbs Racing and Richard Childress Racing. Those agreements allow the company to use team marks, as well as driver names, signatures and numbers on its products.
Staff writer Kristi Arellano can be reached at 303-954-1902 or karellano@denverpost.com.
EARNINGS
Wal-Mart Stores Inc.: The world’s largest retailer reported on Tuesday a better-than-expected 9.8 percent increase in fourth-quarter profits, helped by new strategy and cost-control measures at its flagship U.S. stores division. But Wal- Mart still faces the challenge of reinvigorating sales at its U.S. stores amid fierce competition, analysts said. Wal-Mart said profit for the period that ended Jan. 31 was $3.94 billion, or 95 cents per share, up from $3.59 billion, or 87 cents a share, from a year earlier. Even without a $98 million tax benefit worth 2 cents per share, Wal-Mart’s earnings beat the 90-cents-per- share forecast by analysts surveyed by Thomson Financial.
Hewlett-Packard Co.: The computer and printer maker’s first- quarter profit jumped 26 percent as the company benefited from higher sales of laptop computers, printers and printing supplies during a robust holiday spending season. The company on Tuesday said it earned $1.55 billion, or 55 cents per share, for the quarter ended Jan. 31, compared with $1.23 billion, or 42 cents per share, for the same period a year earlier. HP said revenue for the period was $25.1 billion, compared with $22.7 billion during the same quarter a year earlier. Excluding one-time charges, HP said it earned $1.8 billion, or 65 cents per share, beating analyst forecasts. Analysts were expecting HP to earn, on average, 62 cents per share on $24.3 billion in revenue, according to a survey by Thomson Financial.
Home Depot Inc.: The world’s largest home-improvement chain reported a 28 percent drop in fourth-quarter profit Tuesday, and its chief executive told analysts something they’ve heard before: The company plans to focus more on its retail stores and improve customer service. But new CEO Frank Blake was mum on how he planned to achieve those goals, and the company did not provide guidance for 2007. The Atlanta-based company said it earned $925 million, or 46 cents a share, for the three months ended Jan. 28, compared with a profit of $1.29 billion, or 60 cents a share, for the same period a year earlier. Excluding 4 cents per share of expenses related to executive severance, the company reported earnings of 50 cents a share. Analysts surveyed by Thomson Financial were expecting earnings of 50 cents a share, excluding one-time items. Revenue in the quarter rose to $20.27 billion, compared with revenue of $19.49 billion recorded in the same period a year earlier.
