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Crocs reports second quarter losses

Footwear retailer and manufacturer Crocs has reported a second quarter loss after a slump in wholesale sales and the impact of one-off charges.

However, the performance at the beleaguered retailer was ahead of Wall Street estimates.

In the quarter to June 30, the Colorado-based retailer made a loss of $30.3m (£18.1m) versus a profit of $2.1m (£1.3m) the year before. Excluding one-off costs, losses after tax were $5m (£2.9m), ahead of company guidance.

Second quarter sales fell 11% to $197.7m (£118.2m), down from $222.8m (£133.2m) the year before. Retail sales grew 58.9% to $55.3m (£33.1m) and online sales rose 24.8% to $17.4m (£104m). Wholesale sales fell 28.2% to $125m (£74.7m).

Revenues rose 30.5% in Asia and decreased 19.4% in the Americas and dropped 41.8% in Europe.

First-half losses were $52.7m (£31.5m) versus a loss of $2.4m (£1.4m) in the same period the year before. Sales over the six month period dropped 21% to $332.6m (£198.8m).

President and chief executive John Duerden said: “Our top-line results were better than expected driven by strong gains in our retail channel, as consumers responded positively to the broad product assortment now available at our company-operated locations. 

“We continue to gain market share in Asia, where our business has been strong in recent quarters.  We strengthened our balance sheet, reducing inventory and repaying all outstanding borrowings under our credit facility.

“While we are encouraged by our progress, we are clearly not satisfied with these results. We intend to reduce expenses, improve our cash position and making targeted investments in our systems and procedures to serve customers better and to increase productivity.”

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