Crocs, Inc. (CROX) saw its loss narrow to $1.53 million, or $0.07 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $24.02 million, or $0.37 a share.
Revenue during the quarter dropped 10.29 percent to $245.89 million from $274.09 million in the previous year period. Gross margin for the quarter expanded 571 basis points over the previous year period to 49.79 percent. Operating margin for the quarter stood at negative 0.49 percent as compared to a negative 7.56 percent for the previous year period.
Operating loss for the quarter was $1.22 million, compared with an operating loss of $20.73 million in the previous year period.
Gregg Ribatt, chief executive officer, said "We continue to manage our business tightly in what remains a challenging consumer environment. Revenues were in-line with our expectations while gross margin exceeded our guidance by approximately 200 basis points as we further limited off-price selling and promotional activities. At the same time, we reduced our inventories 11% compared with last year. Looking ahead, we continue to plan conservatively given the current top-line headwinds. We are working hard to drive quality growth through our product, marketing, and distribution strategies and we remain confident that the steps we’ve taken to build a better business model will result in increased profitability and greater shareholder value."
For financial year 2016, Crocs, Inc. projects revenue to be in the range of $1,034 million to $1,044 million.
For the fourth-quarter, Crocs, Inc. projects revenue to be in the range of $185 million to $195 million.
Working capital declines
Crocs, Inc. has witnessed a decline in the working capital over the last year. It stood at $322.10 million as at Sep. 30, 2016, down 6.51 percent or $22.44 million from $344.54 million on Sep. 30, 2015. Current ratio was at 3.09 as on Sep. 30, 2016, up from 2.77 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 74 days for the quarter from 121 days for the last year period. Days sales outstanding went up to 61 days for the quarter compared with 58 days for the same period last year.
Days inventory outstanding has decreased to 63 days for the quarter compared with 112 days for the previous year period. At the same time, days payable outstanding went up to 50 days for the quarter from 49 for the same period last year.
Debt comes down significantly
Crocs, Inc. has recorded a decline in total debt over the last one year. It stood at $3.62 million as on Sep. 30, 2016, down 53.19 percent or $4.11 million from $7.73 million on Sep. 30, 2015. Total debt was 0.58 percent of total assets as on Sep. 30, 2016, compared with 1.07 percent on Sep. 30, 2015. Debt to equity ratio was at 0.01 as on Sep. 30, 2016, down from 0.02 as on Sep. 30, 2015.
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