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11/06/2015

Crocs' E-Commerce Business Grows Globally

Casual footwear company Crocs, Inc. reported revenues of $274.1 million for its 2015 third quarter. Excluding store closings and discontinued product lines, core business was up $9.7 million or 3.7% to last year on a constant currency basis.

Despite operating 11 fewer country-specific sites compared to last year, Crocs' global e-commerce business grew on a comparable site basis 31% in constant currency, with the Americas up 33% and Asia up 42%, while Europe e-commerce was up less at 19%. 

Crocs new marketing campaign #FindYourFun has driven a 27% plus increase in brand desirability and consideration among consumers who have seen the Crocs ad.

The online experience launched in June and allows fans around the world to style their very own fashion show, which happens to take place on a water slide. The Crocs Funway Runway experience was built on Twitter, and allows users to style their own water slide fashion show by choosing a model, outfit, Crocs shoes and music track. Once all selections are made, the user gets a 30-second video of their model splashing down a water slide, which they can share on Facebook and Twitter. There are 135 different Funway Runway combinations users can create.

"Global direct-to-consumer comp revenues were up 4.7%, repeating the strong performance in Q2. Our e-commerce business was strong across all regions, led by the U.S. and Asia," said President Andrew Rees. "In our six core markets, our e-commerce business has benefited from better execution, including a globally consistent online customer experience and a commitment to better in-stock positions on core product."

The company admitted to a previously dated product line and delivery challenges in 2015, however noted it has driven continuing business model growth in constant currency in the low single digits.

"With our new product, year two of our marketing programs and improved deliveries, we're confident that we can drive 2016 revenues up in the mid-single digits based on current exchange rates," said CEO Gregg Ribatt.

Appointments

Donna Flood, the former Chief Operating Officer of Easton-Bell, and previously a senior level executive at Reebok, joins the company as Chief Information Officer.

Carrie Teffner is joining the company as Chief Finance Officer effective December 2015. Teffner is joining the company from the Board of Directors and is the former Chief Finance Officer of PetSmart and previously served as the Chief Finance Officer of Timberland.