NIWOT, Colo. (May 8, 2009)—According to the financial results for Crocs, Inc., (CROX), the company’s first quarter showed improvement over the fourth quarter of 2008, but significant decreases compared to the year-ago time period.

Crocs' Trailbreak

For the first quarter ended March 31, revenue reached $134.9 million. Although this figure is a 7 percent increase from the fourth quarter of 2008, it represents a 32 percent drop of $63.6 million compared to the first quarter of 2008.

“While our first quarter results were generally in line with expectations, there is still much work ahead of us in order to improve on our recent performance and return to consistent profitability,” says John Duerden, Crocs president and CEO. “Crocs achieved a tremendous amount in a few short years and quickly established itself as a truly global brand with market penetration in more than 100 countries. During this time, the product line evolved significantly from a few key items into seasonal footwear collections that have created a large and loyal consumer base.

“With this rapid growth came a number of challenges which, along with the recent recession, have negatively impacted the business. In response, Crocs took several steps throughout 2008 to better align its expense structure with lower sales volumes and strengthen its balance sheet. Our intention in 2009 is to preserve the strength of the Crocs brand while endeavoring to strike a balance between lowering our fixed cost base and responsibly reducing our inventory.”

The company reported a net loss of $22.4 million in the first quarter of 2009 with a diluted loss per share of $0.27, compared to a fourth quarter net loss of $34.7 million, or $0.42 per share. In the first quarter of 2008, Crocs reported a net loss of $4.5 million, or $0.05 per share.

The company did experience several bright spots during the first quarter. Retail sales rose 60 percent to $27.9 million and Internet sales increased 46 percent to $11.7 million. Wholesale sales, however, plummeted 45 percent to $95.3 million. Revenue from Asia was up 7 percent to $39 million, but Europe and the Americas decreased 49 percent to $28.3 million and 49 percent to $28.3 million respectively.

During the second quarter, the company expects to generate between $135 and $160 million, with a diluted loss per share between $0.31 and $0.15. Due to uncertainties created by the current global economic downturn, the company is not providing annual guidance at this time.

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