Crocs, Inc. (CROX) saw its loss narrow to $40.64 million, or $0.60 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $70.17 million, or $1.01 a share. On an adjusted basis, net loss for the quarter was $43.12 million, when compared with $47.16 million in the last year period.
Revenue during the quarter dropped 10.19 percent to $187.42 million from $208.68 million in the previous year period. Gross margin for the quarter expanded 715 basis points over the previous year period to 42 percent. Operating margin for the quarter stood at negative 21.23 percent as compared to a negative 31.43 percent for the previous year period.
Operating loss for the quarter was $39.79 million, compared with an operating loss of $65.58 million in the previous year period.
Gregg Ribatt, Chief Executive Officer, noted that, "Our fourth quarter revenues were in line with our expectations while our adjusted gross margin rate improved by approximately 550 basis points versus prior year. This gross margin gain was less than previously anticipated due to currency and channel mix fluctuations and also to certain one-time events, however we are still on track to achieve our medium-term target for gross margins in the low 50% range. Furthermore, disciplined inventory management practices enabled us to reduce year-end inventory levels by $21.2 million, or 13%, and to generate approximately $40 million of cash flow from operations during the year."
For the first-quarter, Crocs, Inc. projects revenue to be in the range of $255 million to $265 million.
Working capital remains almost stable
Crocs, Inc. has witnessed a decline in the working capital over the last year. It stood at $276.34 million as at Dec. 31, 2016, down 0.90 percent or $2.52 million from $278.85 million on Dec. 31, 2015. Current ratio was at 2.85 as on Dec. 31, 2016, up from 2.67 on Dec. 31, 2015.
Debt comes down significantly
Crocs, Inc. has recorded a decline in total debt over the last one year. It stood at $2.38 million as on Dec. 31, 2016, down 62.84 percent or $4.02 million from $6.40 million on Dec. 31, 2015. Total debt was 0.42 percent of total assets as on Dec. 31, 2016, compared with 1.05 percent on Dec. 31, 2015. Debt to equity ratio was at 0.01 as on Dec. 31, 2016, down from 0.03 as on Dec. 31, 2015.
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