Crocs plans to increase its marketing investments by one-third to about $15 million this year to raise consumer awareness of the brand. It also plans to open between 70 and 95 new stores – most of them in the first half – and to prepare the launch of a new ERP system in 2014.
Crocs has reported an increase in turnover of 12 percent to $1.12 billion in 2012, equal to a 14 percent hike in constant currencies. The American shoe brand improved its gross margin by 0.5 percentage points to 54.1 percent. The net income soared by 17 percent to $131.3 million excluding non-operating items.
The fourth quarter, however, was by far less successful with a net loss of $3.6 million compared with a profit of $5.6 million in the previous year's period. Total sales increased in the last three months by 10.4 percent to nearly $225.0 million globally, with a 10.9 percent increase in local currencies, but comparative store sales declined in all the regions. Sales in Europe were off by 14.4 percent to $13.2 million in the wholesale channel, up by 128 percent to $9.9 million at retail and up by 15.2 percent to $4.9 million online.
Altogether, the company sold some 50 million pairs of shoes last year, and average selling prices went up. Sales grew by double digits in the U.S. and Asia, but had a slight decline of 0.8 percent in Europe, down to $169.5 million. Crocs says that its should go back into a double-digit growth mode in Europe this year thanks to new retail investments and the appointment of a new and more experienced management team.
With spring/summer 2013 orders up by 15 percent as of last Dec. 31, the company foresees revenue growth of between 13 and 15 percent in the first half of this year, followed by a slight acceleration in the second half.
