Crocs (NASDAQ: CROX) reported Q1 EPS of $0.36, $0.11 better than the analyst estimate of $0.25. Revenue for the quarter came in at $295.9 million versus the consensus estimate of $292.01 million.

GUIDANCE:

Crocs sees Q2 2019 revenue of $350-360 million, versus the consensus of $357.56 million.

• The Company anticipates revenues will be positively impacted by the Easter shift, but negatively impacted by approximately $6 million due to store closures and $10 million due to the stronger U.S. Dollar as compared to last year. This guidance reflects constrained levels of Classic clogs as a result of surging demand; however, inventories are expected to be restored to appropriate levels by the end of the quarter.
• Gross margin to be approximately 51% compared to 55.3% in the second quarter of 2018. This decline reflects (i) non-recurring charges relating to the new distribution center, which are expected to reduce gross margin by approximately 120 basis points, (ii) a negative impact from the stronger U.S. Dollar of approximately 150 basis points, which we expect to have a disproportionately negative impact on the first and second quarters of 2019, and (iii) a negative impact of approximately 160 basis points from higher freight and distribution costs in the Americas.
• SG&A to be approximately 40% of revenues. This includes non-recurring charges of approximately $2 million related to various cost reduction initiatives. In the second quarter of 2018, SG&A was 44.0% of revenues and included $8.4 million of non-recurring charges.
• With respect to 2019, the Company continues to expect: Revenues to be up 5% to 7% over 2018 revenues of $1,088.2 million

For earnings history and earnings-related data on Crocs (CROX) click here.