Crocs Inc. (NASDAQ:CROX) stock has dropped -12.5% since it released stronger-than-anticipated Q4 earnings and full 2018 results yesterday. This past year, the shoe retailer has closed more than 150 of its stores to boost its business, but it doesn’t seem that the numbers were enough to impress investors.
Crocs Reports Positive Revenue as CROX Drops
Crocs brought in $216 million in revenue this past quarter, growing 8.5% from Q4 2017. The shoe apparel company states that it lost $7 million from store closures and business model changes. The company reported that its wholesale revenue grew 9.7% in the quarter and e-commerce grew 18.9%. Crocs said that its retail comparable stores grew 13.4% in Q4.
“Our fourth quarter results contributed to what was a very successful year,” said CEO of Crocs Andrew Rees. Rees anticipates his company will grow 5–7% in 2019.
For the full year, Crocs revenue hit $1.08 billion, growing 6.3% from 2017. The company predicts that its store closures and business model adjustments lost the company around $60 million in revenue for the year.
Crocs Looks Ahead into 2019
The shoe manufacturer has put money into a new distribution center in Dayton, Ohio. The company expects it to be completed by the end of 2019 and it will completely replace its current facility outside Los Angeles.
The new distribution center in Ohio is said to be 40% larger than the existing facility and Crocs anticipates that it will increase throughput by around 50%. With the new center in the middle of the country, the company expects its deliveries to be much faster for its customers that shop online and in stores.
Current projected revenue for the company is expected to be around $1.08 billion. The company is still planning to close some stores, which will result in some revenue loss.
Crocs Stock Movement
According to Yahoo Finance, CROX is currently trading at $24.95 a share, down -$0.73 (-2.82%). Year-to-date, the stock has dropped -20%. It remains unknown at this time why investors sold the stock, given the positive revenue achieved in Q4 and all of 2018.
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