Crocs Earnings As Attractive As Its Shoes (CROX)

Crocs, Inc. (NASDAQ: CROX) may have moved into new aspects of apparel of late, but that is not helping the company on its earnings report.  The maker of the world’s ugliest shoes (except for clown shoes, maybe) Reported earnings of $0.06 EPS on revenue of $203.7 million.  Thomson Reuters had consensus targets at $0.04 EPS but closer to $205.2 million in sales.

For the existing first quarter that the company is already in, the company guided earnings to a range of $0.24 to $0.26 EPS and it guided revenues to a range of $263 million to $268 million.  Thomson Reuters is at $0.30 EPS on $268.7 million in revenues.

After closing up 0.9% at $20.37, shares of Crocs are as ugly as many of their shoes with a drop of over 7% at $18.91.  The 52-week trading range is $14.95 to $32.47.

We always aim for some balance and we are fairly hard on the brand here.  That being said, if the company manages to meet the $1.46 EPS target from Thomson Reuters in 2012 and that after-hours price remains static then it trades at only 13.6-times expected earnings in 2012.  For a retailer that is expected to still have growth, that valuation is not exactly expensive by most traditional counts.

JON C. OGG