Crocs, Inc. (NASDAQ:CROX) Q1 2019 Earnings Conference Call Transcript

May 07, 2019 • 08:30 am ET


Crocs, Inc. (NASDAQ:CROX) Q1 2019 Earnings Conference Call Transcript


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Good morning, my name is Sharon, and I will be your conference operator today. At this time, I would like to welcome everyone to the Crocs First Quarter 2019 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions) Thank you.

At this time, I will turn the call over to Marisa Jacobs, Global Head of Investor Relations to begin the conference.

Marisa Jacobs

Good morning, everyone, and thank you for joining us today for the Crocs first quarter 2019 earnings call. Early in this morning, we announced our first quarter results and a copy of the press release can be found on our website at We would like to remind you that some of the information provided on this call is forward-looking and accordingly is subject to the Safe Harbor provisions of the federal securities laws. These statements include but are not limited to statements regarding future revenues, gross margin, SG&A as a percent of revenues, operating margins, CapEx and our product pipeline.

Crux is not obligated to update these forward-looking statements to reflect the impact of future events. Adjusted gross margin, SG&A, income from operations, net income and earnings per diluted common share are non-GAAP measures. A reconciliation of these amounts to their GAAP counterparts are contained in the press release issued earlier this morning. We caution you that all forward-looking statements are subject to risks and uncertainties described in the Risk Factors section of our Annual Report on Form 10-K.

Accordingly, actual results could differ materially from those described on this call. Please refer to Crocs Annual Report on Form 10-K, as well as other documents filed with the SEC for more information relating to these risk factors. Joining us on the call today are, Andrew Rees, President and Chief Executive Officer; and Anne Mehlman, Executive Vice President and Chief Financial Officer. Following their prepared remarks, we will open the call for your questions.

At this time, I'll turn the call over to Andrew.

Andrew Rees

Thank you, Marisa, and good morning everyone. I'm particularly pleased with the strong first quarter growth we delivered as demand for our brand continues to accelerate. Our priority for 2019 is to drive sustainable profitable top line growth by delivering great products and by growing our business across our three channels and our three geographic segments, just as we did in Q1. On a constant currency basis and excluding the $6 million impact of store closures, we grew global revenues, more than 11% with gains in all channels and geographies. The geographic standout was a mere where we had a truly remarkable growth. Our global retail comp of 8.7% was exceptionally strong, especially when you take into account the Easter shift to later in the second quarter.

Our e-commerce business once again delivered double-digit increases and our wholesale business grew mid-single digits even as demand for classic plugs in Americas exceeded supply. Higher than expected revenue growth in