Comparable sales rose 13 percent globally for Crocs in the final period of 2018, the brand’s sixth consecutive quarterly gain, with e-commerce a strong driver.
In FY18, wholesale revenues rose 8 percent; a DTC comp of 14 percent outpaced the retail comp gain of 11 percent and ecommerce sales rose 23 percent to account for 17 percent of all revenues. Clog sales rose 30 percent for the year.
“We’re driving the strong e-commerce results by continually improving the customer experience on our sites and enhancing the effectiveness of our global digital marketing activities,” Andrew Rees, president, CEO and director of Crocs, said on a call with analysts. “We embraced digital commerce early on, believing we would win by allowing consumers to shop wherever, and however they wanted, and we’ve been investing to build our global team and technological capabilities in this area. E-commerce is the fastest-growing portion of our business and we expect that to remain the case going forward.”
Crocs has closed 175 stores over the last two years, which completes its store closure plan, Rees said. The brand is currently forecasting 5 to 7 percent revenue growth in FY19, including a negative $20 million impact from currency. E-commerce and wholesale growth are expected to offset lower retail revenues due to store closures.
Elsewhere, the company is investing in a new, 550,000-sq. ft. distribution center in Dayton, OH to replace the existing, smaller facility near Los Angeles. The Dayton DC will be fully operational in 2020.