BROOMFIELD, COLORADO — October 27, 2020 — Crocs, Inc. (NASDAQ: CROX), a world leader in innovative casual footwear for women, men, and children, today announced its third quarter 2020 financial results.
Andrew Rees, Chief Executive Officer, said, “We achieved record third quarter revenue and EPS despite the challenges presented by the global COVID-19 pandemic. Our extraordinary performance and strong cash flow generation demonstrates the strength of the Crocs brand and product offering globally. I am tremendously proud of how we have executed as a team and am excited for our future.”
Third Quarter 2020 Highlights
•Record third quarter revenues at $361.7 million after record third quarter revenues were achieved in 2019. Revenues increased 15.7%, or 15.9% on a constant currency basis, with growth in all three channels.
•Digital sales grew 35.5% to represent 37.7% of revenue versus 32.2% last year with growth in all regions.
•Retail comparable store sales grew 16.2%.
•Operating income increased 80.7% to $72.1 million and operating margins expanded 710 basis points to 19.9%.
•Diluted earnings per share grew 78.4% to a quarterly record of $0.91.
Amounts referred to as “Adjusted” are Non-GAAP measures and include adjustments that are described under the heading “Reconciliation of GAAP Measures to Non-GAAP Measures.” A reconciliation of these amounts to their GAAP counterparts are contained in the schedules below.
Third Quarter 2020 Operating Results
•Revenues were $361.7 million, an increase of 15.7% from the same period last year, or 15.9% on a constant currency basis. E-commerce revenues grew 36.3%, wholesale revenues grew 12.4%, and retail revenues increased 8.9%.
•Gross margin of 57.2% increased 480 basis points compared to 52.4% in the same period last year. Adjusted gross margin of 57.4% rose 380 basis points from the same period last year.
•SG&A expenses of $134.7 million increased from $123.9 million in the same period last year and SG&A as a percent of revenue improved by 240 basis points to 37.2%. Adjusted SG&A improved to 36.6% of revenues versus 39.4% for the same period last year.
1
•Income from operations increased 80.7% to $72.1 million from $39.9 million for the same period last year. Operating margin rose 710 basis points to 19.9%. Adjusted income from operations rose 69.7% to $75.4 million and adjusted operating margin was 20.8% compared to 14.2% for the same period last year.
•Diluted earnings per share increased 78.4% to a quarterly record of $0.91, as compared to $0.51 for the same period last year. Adjusted diluted earnings per share were $0.94, or 64.9% above the $0.57 for the same period last year.
Third Quarter 2020 Geographic Summary
•Americas: Revenues of $234.0 million increased 27.3% on a constant currency basis.
•Asia Pacific: Revenues of $67.7 million decreased 9.0% on a constant currency basis.
•EMEA: Revenues of $60.0 million increased 10.7% on a constant currency basis.
Third Quarter 2020 Channel Summary
•Wholesale: Revenues increased 12.4% to $164.5 million compared to $146.4 million for the same period last year.
•Retail: Revenues increased 8.9% to $117.2 million compared to $107.6 million for the same period last year.
•E-Commerce: Revenues increased 36.3% to $80.0 million compared to $58.7 million for the same period last year.
•Digital sales, which includes sales through our company-owned websites, third party marketplaces, and e-tailers, grew 35.5% to 37.7% of total revenues versus 32.2% for the same period last year.
•Direct-to-consumer comparable sales, which includes retail and e-commerce, grew 23.8% versus 15.9% for the same period last year.
Balance Sheet and Cash Flow
•Cash and cash equivalents were $123.6 million as of September 30, 2020, compared to $108.3 million as of December 31, 2019.
•Inventories increased to $174.1 million as of September 30, 2020, compared to $172.0 million as of December 31, 2019 and $139.8 million as of September 30, 2019 as in-transit inventories were up approximately $20 million from the same period last year.
•Capital expenditures during the nine months ended September 30, 2020 were $33.2 million, relatively flat to the same period last year.
•Borrowings at September 30, 2020 were $135.0 million after repaying $140.0 million in debt during the third quarter. Our liquidity position remains strong with $364.4 million in available borrowing capacity.
Stock Repurchase Activity
We have a track record of investing to fuel growth and returning capital to shareholders. During the third quarter of 2020, we did not repurchase any shares. Earlier in the year we temporarily suspended the share repurchase program to maximize liquidity and flexibility during the COVID-19 pandemic. As of September 30, 2020, we repurchased $39.2 million of shares this year and approximately $469 million in capacity remains under the share repurchase authorization.
Financial Outlook
In these unprecedented times, we will continue to provide forward visibility when appropriate. Excluding the potential impact of any future COVID-related shutdowns in major markets, we expect:
•Revenues: Fourth quarter revenue to grow between 20% and 30% compared to 2019. This translates into full year 2020 revenue growth of approximately 5% to 7%.
•Tax rate: A 2020 tax rate of approximately 11% as we project to utilize deferred tax assets that were previously subject to a valuation allowance.
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•Capital expenditures: Approximately $50 million of capital expenditures for 2020, which reflects investment to support future growth.
Conference Call Information
A conference call to discuss third quarter 2020 results is scheduled for today, Tuesday, October 27, 2020, at 8:30 am ET. To receive conference call details, please register at the Investor Relations section of the Crocs website, investors.crocs.com. The webcast will also be available live and on replay through October 27, 2021 at this site.
About Crocs, Inc.
Crocs, Inc. (Nasdaq: CROX) is a world leader in innovative casual footwear for women, men, and children, combining comfort and style with a value that consumers know and love. The vast majority of shoes within Crocs’ collection contains Croslite™ material, a proprietary, molded footwear technology, delivering extraordinary comfort with each step.
In 2020, Crocs declares that expressing yourself and being comfortable are not mutually exclusive. To learn more about Crocs or our global Come As You Are™ campaign, please visit www.crocs.com or follow @Crocs on Facebook, Instagram, and Twitter.
Forward Looking Statements
This press release includes estimates, projections, and statements relating to our business plans, objectives, and expected operating results that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements regarding potential impacts to our business related to the COVID-19 pandemic, our financial condition, brand and liquidity outlook, and expectations regarding our 2020 revenue, tax rate, capital expenditures, and cash flow. These statements involve known and unknown risks, uncertainties, and other factors, which may cause our actual results, performance, or achievements to be materially different from any future results, performances, or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to, the following: the COVID-19 pandemic and related government, private sector, and individual consumer responsive actions; current global financial conditions, including economic impacts resulting from the COVID-19 pandemic; the effect of competition in our industry; our ability to effectively manage our future growth or declines in revenues; changing consumer preferences; our ability to maintain and expand revenues and gross margin; our ability to accurately forecast consumer demand for our products; our ability to successfully implement our strategic plans; our ability to develop and sell new products; our ability to obtain and protect intellectual property rights; the effect of potential adverse currency exchange rate fluctuations and other international operating risks; and other factors described in our most recent Annual Report on Form 10-K under the heading “Risk Factors” and our subsequent filings with the Securities and Exchange Commission. Readers are encouraged to review that section and all other disclosures appearing in our filings with the Securities and Exchange Commission.
All information in this document speak only as of the date of this press release. We do not undertake any obligation to update publicly any forward-looking statements.
Category:Investors
3
CROCS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share data)
Three Months Ended September 30,
Nine Months Ended September 30,
2020
2019
2020
2019
Revenues
$
361,736
$
312,766
$
974,445
$
967,614
Cost of sales
154,967
148,942
453,581
476,796
Gross profit
206,769
163,824
520,864
490,818
Selling, general and administrative expenses
134,683
123,940
371,371
370,525
Income from operations
72,086
39,884
149,493
120,293
Foreign currency gains (losses), net
(516)
585
(1,434)
(893)
Interest income
43
167
189
493
Interest expense
(1,502)
(2,505)
(5,593)
(6,743)
Other income (expense), net
(27)
(34)
901
(48)
Income before income taxes
70,084
38,097
143,556
113,102
Income tax expense
8,195
2,421
14,025
13,518
Net income
$
61,889
$
35,676
$
129,531
$
99,584
Net income per common share:
Basic
$
0.92
$
0.52
$
1.92
$
1.40
Diluted
$
0.91
$
0.51
$
1.89
$
1.38
Weighted average common shares outstanding:
Basic
67,473
69,097
67,606
71,003
Diluted
68,385
70,176
68,608
72,342
4
CROCS, INC. AND SUBSIDIARIES
EARNINGS PER SHARE
(UNAUDITED)
(in thousands, except per share data)
Three Months Ended September 30,
Nine Months Ended September 30,
2020
2019
2020
2019
Numerator:
Net income
$
61,889
$
35,676
$
129,531
$
99,584
Denominator:
Weighted average common shares outstanding - basic
67,473
69,097
67,606
71,003
Plus: Dilutive effect of stock options and unvested restricted stock units
912
1,079
1,002
1,339
Weighted average common shares outstanding - diluted
68,385
70,176
68,608
72,342
Net income per common share:
Basic
$
0.92
$
0.52
$
1.92
$
1.40
Diluted
$
0.91
$
0.51
$
1.89
$
1.38
5
CROCS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands, except share and par value amounts)
September 30, 2020
December 31, 2019
ASSETS
Current assets:
Cash and cash equivalents
$
123,562
$
108,253
Accounts receivable, net of allowances of $21,206 and $18,797, respectively
139,474
108,199
Inventories
174,119
172,028
Income taxes receivable
8,426
1,341
Other receivables
9,593
8,711
Restricted cash - current
1,565
1,500
Prepaid expenses and other assets
15,570
25,350
Total current assets
472,309
425,382
Property and equipment, net of accumulated depreciation and amortization of $86,252 and $79,604, respectively
56,321
47,405
Intangible assets, net of accumulated amortization of $94,627 and $82,760, respectively
40,147
47,095
Goodwill
1,649
1,578
Deferred tax assets, net
23,273
24,747
Restricted cash
1,810
2,292
Right-of-use assets
197,402
182,228
Other assets
9,134
8,075
Total assets
$
802,045
$
738,802
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
119,108
$
95,754
Accrued expenses and other liabilities
100,294
108,677
Income taxes payable
9,467
4,207
Current operating lease liabilities
49,741
48,585
Total current liabilities
278,610
257,223
Long-term income taxes payable
5,098
4,522
Long-term borrowings
135,000
205,000
Long-term operating lease liabilities
155,349
140,148
Other liabilities
1
4
Total liabilities
574,058
606,897
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.001 per share, 5.0 million shares authorized including 1.0 million authorized as Series A Convertible Preferred Stock, none outstanding
—
—
Common stock, par value $0.001 per share, 250.0 million shares authorized, 105.0 million and 104.0 million issued, 67.5 million and 68.2 million outstanding, respectively
105
104
Treasury stock, at cost, 37.5 million and 35.8 million shares, respectively
(587,983)
(546,208)
Additional paid-in capital
508,055
495,903
Retained earnings
370,016
240,485
Accumulated other comprehensive loss
(62,206)
(58,379)
Total stockholders’ equity
227,987
131,905
Total liabilities and stockholders’ equity
$
802,045
$
738,802
6
CROCS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Nine Months Ended September 30,
2020
2019
Cash flows from operating activities:
Net income
$
129,531
$
99,584
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
20,251
17,508
Operating lease cost
45,818
44,776
Inventory donations
8,873
23
Provision for doubtful accounts, net
5,720
2,132
Share-based compensation
10,809
11,020
Other non-cash items
3,632
(2,843)
Changes in operating assets and liabilities:
Accounts receivable
(38,937)
(30,619)
Inventories
(14,873)
(17,178)
Prepaid expenses and other assets
7,706
(3,501)
Accounts payable, accrued expenses and other liabilities
25,243
1,955
Operating lease liabilities
(45,133)
(49,668)
Cash provided by operating activities
158,640
73,189
Cash flows from investing activities:
Purchases of property, equipment, and software
(33,193)
(32,852)
Proceeds from disposal of property and equipment
434
302
Other
(168)
—
Cash used in investing activities
(32,927)
(32,550)
Cash flows from financing activities:
Proceeds from bank borrowings
150,000
310,000
Repayments of bank borrowings
(220,000)
(245,000)
Dividends—Series A convertible preferred stock (1)
—
(2,985)
Repurchases of common stock
(39,159)
(133,475)
Other
(1,792)
(3,275)
Cash used in financing activities
(110,951)
(74,735)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
130
(2,299)
Net change in cash, cash equivalents, and restricted cash
14,892
(36,395)
Cash, cash equivalents, and restricted cash—beginning of period
112,045
127,530
Cash, cash equivalents, and restricted cash—end of period
$
126,937
$
91,135
(1) For the nine months ended September 30, 2019, represents $3.0 million paid to induce conversion of Series A Convertible Preferred Stock to common stock.
7
8
CROCS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
In addition to financial measures presented on the basis of accounting principles generally accepted in the United States of America (“GAAP”), we present “Non-GAAP cost of sales,” “Non-GAAP gross profit,” “Non-GAAP gross margin,” “Non-GAAP selling, general, and administrative expenses,” “Non-GAAP net income,” “Non-GAAP income from operations”, “Non-GAAP operating margin,” “Non-GAAP weighted average common shares outstanding - basic and diluted,” and “Non-GAAP basic and diluted net income per common share,” which are non-GAAP financial measures. Non-GAAP results exclude the impact of items that management believes affect the comparability or underlying business trends in our condensed consolidated financial statements in the periods presented.
We also present certain information related to our current period results of operations through “constant currency,” which is a non-GAAP financial measure and should be viewed as a supplement to our results of operations and presentation of reportable segments under GAAP. Constant currency represents current period results that have been retranslated using exchange rates used in the prior year comparative period to enhance the visibility of the underlying business trends excluding the impact of foreign currency exchange rate fluctuations.
Management uses non-GAAP results to assist in comparing business trends from period to period on a consistent basis in communications with the board of directors, stockholders, analysts, and investors concerning our financial performance. We believe that these non-GAAP measures are useful to investors and other users of our condensed consolidated financial statements as an additional tool for evaluating operating performance and trends. For the three and nine months ended September 30, 2020, management believes it is helpful to evaluate our results excluding the impacts of various adjustments relating to special or non-recurring items. Investors should not consider these non-GAAP measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
9
CROCS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(UNAUDITED)
Non-GAAP cost of sales, gross profit, and gross margin reconciliation:
Three Months Ended September 30,
Nine Months Ended September 30,
2020
2019
2020
2019
(in thousands)
GAAP revenues
$
361,736
$
312,766
$
974,445
$
967,614
GAAP cost of sales
$
154,967
$
148,942
$
453,581
$
476,796
New distribution centers (1)
(897)
(3,678)
(2,636)
(7,981)
COVID-19 inventory write-off (2)
—
—
(2,396)
—
Other
(119)
(42)
(119)
(175)
Total adjustments
(1,016)
(3,720)
(5,151)
(8,156)
Non-GAAP cost of sales
$
153,951
$
145,222
$
448,430
$
468,640
GAAP gross profit
$
206,769
$
163,824
$
520,864
$
490,818
GAAP gross margin
57.2
%
52.4
%
53.5%
50.7
%
Non-GAAP gross profit
$
207,785
$
167,544
$
526,015
$
498,974
Non-GAAP gross margin
57.4
%
53.6
%
54.0%
51.6
%
(1) Represents expenses, including expansion costs, related to our distribution centers in Dayton, Ohio and Dordrecht, the Netherlands.
(2) Represents an inventory write-off in our Asia Pacific segment associated with the impact of COVID-19.
Non-GAAP selling, general and administrative expenses reconciliation:
Three Months Ended September 30,
Nine Months Ended September 30,
2020
2019
2020
2019
(in thousands)
GAAP revenues
$
361,736
$
312,766
$
974,445
$
967,614
GAAP selling, general and administrative expenses
$
134,683
$
123,940
$
371,371
$
370,525
Donations of inventory
(50)
—
(9,970)
—
COVID-19 severance costs
—
—
(2,403)
COVID-19 impact of bad debt expense (1)
48
—
(4,433)
—
Other COVID-19 costs (2)
(183)
—
(827)
—
Duplicate headquarters rent (3)
(426)
—
(1,120)
—
Non-recurring expenses associated with cost reduction initiatives in 2019
—
(809)
—
(1,698)
Other (4)
(1,652)
—
(2,133)
—
Total adjustments
(2,263)
(809)
(20,886)
(1,698)
Non-GAAP selling, general and administrative expenses (5)
$
132,420
$
123,131
$
350,485
$
368,827
GAAP selling, general and administrative expenses as a percent of revenues
37.2
%
39.6
%
38.1
%
38.3
%
Non-GAAP selling, general and administrative expenses as a percent of revenues
36.6
%
39.4
%
36.0
%
38.1
%
(1) Represents bad debt expense associated with the impact of COVID-19 on wholesale partners in our Asia Pacific and Americas segments.
(2) Represents costs incurred in response to the COVID-19, including hazard pay, cleaning costs, and legal costs.
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(3) Represents ongoing duplicate rent costs associated with our move to our new headquarters in Broomfield, Colorado, while we conclude the lease for our former headquarters in Niwot, Colorado.
(4) Represents non-recoverable duties, non-recurring costs related to the closure of company-owned retail stores in Australia, employee severance costs, and various other immaterial items.
(5) Non-GAAP selling, general and administrative expenses are presented gross of tax.
Non-GAAP income from operations and operating margin reconciliation:
Three Months Ended September 30,
Nine Months Ended September 30,
2020
2019
2020
2019
(in thousands)
GAAP revenues
$
361,736
$
312,766
$
974,445
$
967,614
GAAP income from operations
$
72,086
$
39,884
$
149,493
$
120,293
Non-GAAP cost of sales adjustments (1)
1,016
3,720
5,151
8,156
Non-GAAP selling, general and administrative expenses adjustments (2)
2,263
809
20,886
1,698
Non-GAAP income from operations
$
75,365
$
44,413
$
175,530
$
130,147
GAAP operating margin
19.9
%
12.8
%
15.3
%
12.4
%
Non-GAAP operating margin
20.8
%
14.2
%
18.0
%
13.5
%
(1) See 'Non-GAAP cost of sales, gross profit, and gross margin reconciliation' above for more details.
(2) See 'Non-GAAP selling, general and administrative expenses reconciliation' above for more details.
Non-GAAP earnings per share reconciliation:
Three Months Ended September 30,
Nine Months Ended September 30,
2020
2019
2020
2019
(in thousands, except per share data)
Numerator:
GAAP net income
$
61,889
$
35,676
$
129,531
$
99,584
Non-GAAP cost of sales adjustments (1)
1,016
3,720
5,151
8,156
Non-GAAP selling, general and administrative expenses adjustments (2)
2,263
809
20,886
1,698
Non-GAAP other income adjustment (3)
—
—
(919)
—
Tax effect of non-GAAP adjustments (4)
(649)
—
(6,109)
—
Non-GAAP net income
$
64,519
$
40,205
$
148,540
$
109,438
Denominator:
GAAP weighted average common shares outstanding - basic
67,473
69,097
67,606
71,003
Plus: GAAP dilutive effect of stock options and unvested restricted stock units
912
1,079
1,002
1,339
GAAP weighted average common shares outstanding - diluted
68,385
70,176
68,608
72,342
GAAP net income per common share:
Basic
$
0.92
$
0.52
$
1.92
$
1.40
Diluted
$
0.91
$
0.51
$
1.89
$
1.38
Non-GAAP net income per common share:
Basic
$
0.96
$
0.58
$
2.20
$
1.54
Diluted
$
0.94
$
0.57
$
2.17
$
1.51
(1) See 'Non-GAAP cost of sales, gross profit, and gross margin reconciliation' above for more information.
(2) See 'Non-GAAP selling, general and administrative expenses reconciliation' above for more information.
(3) Represents a fair value adjustment associated with our donations of inventory.
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(4) In the three months and nine months ended September 30, 2019, non-GAAP adjustments were in jurisdictions subject to a full valuation allowance, and thus had no material net tax impact.
12
CROCS, INC. AND SUBSIDIARIES
REVENUES BY SEGMENT
(UNAUDITED)
Three Months Ended September 30,
Nine Months Ended September 30,
% Change
Constant Currency % Change (1)
2020
2019
2020
2019
Q3 2020-2019
YTD 2020-2019
Q3 2020-2019
YTD 2020-2019
(in thousands)
Americas:
Wholesale
$
98,025
$
75,660
$
256,258
$
216,846
29.6
%
18.2
%
31.8
%
19.8
%
Retail
89,748
78,141
158,587
182,116
14.9
%
(12.9)
%
14.9
%
(12.9)
%
E-commerce
46,274
31,391
138,510
85,796
47.4
%
61.4
%
47.5
%
61.6
%
Total Americas
234,047
185,192
553,355
484,758
26.4
%
14.2
%
27.3
%
15.0
%
Asia Pacific:
Wholesale
28,842
36,655
109,705
169,468
(21.3)
%
(35.3)
%
(21.1)
%
(33.9)
%
Retail
19,652
20,133
51,643
60,901
(2.4)
%
(15.2)
%
(2.7)
%
(13.3)
%
E-commerce
19,210
17,463
65,388
53,353
10.0
%
22.6
%
9.2
%
24.4
%
Total Asia Pacific
67,704
74,251
226,736
283,722
(8.8)
%
(20.1)
%
(9.0)
%
(18.5)
%
EMEA
Wholesale
37,630
34,058
136,507
144,685
10.5
%
(5.7)
%
8.3
%
(3.9)
%
Retail
7,789
9,347
15,970
25,453
(16.7)
%
(37.3)
%
(15.1)
%
(35.9)
%
E-commerce
14,552
9,869
41,771
28,821
47.5
%
44.9
%
43.3
%
46.4
%
Total EMEA
59,971
53,274
194,248
198,959
12.6
%
(2.4)
%
10.7
%
(0.7)
%
Total segment revenues
361,722
312,717
974,339
967,439
15.7
%
0.7
%
15.9
%
1.9
%
Other businesses
14
49
106
175
(71.4)
%
(39.4)
%
(71.4)
%
(39.4)
%
Total consolidated revenues
$
361,736
$
312,766
$
974,445
$
967,614
15.7
%
0.7
%
15.9
%
1.9
%
Total wholesale
$
164,511
$
146,422
$
502,576
$
531,174
12.4
%
(5.4)
%
13.1
%
(3.8)
%
Total retail
117,189
107,621
226,200
268,470
8.9
%
(15.7)
%
9.0
%
(15.1)
%
Total e-commerce
80,036
58,723
245,669
167,970
36.3
%
46.3
%
35.4
%
47.3
%
Total consolidated revenues
$
361,736
$
312,766
$
974,445
$
967,614
15.7
%
0.7
%
15.9
%
1.9
%
(1) Reflects year over year change as if the current period results were in constant currency, which is a non-GAAP financial measure. See ‘Reconciliation of GAAP Measures to Non-GAAP Measures’ above for more information.
13
CROCS, INC. AND SUBSIDIARIES
RETAIL STORE COUNTS
(UNAUDITED)
June 30, 2020
Opened
Closed
September 30, 2020
Type:
Outlet stores
191
—
5
186
Retail stores
104
—
4
100
Kiosk/store in store
65
—
—
65
Total
360
—
9
351
Operating segment:
Americas
165
—
—
165
Asia Pacific
142
—
6
136
EMEA
53
—
3
50
Total
360
—
9
351
December 31, 2019
Opened
Closed/Transferred
September 30, 2020
Type:
Outlet stores
193
5
12
186
Retail stores
109
3
12
100
Kiosk/store-in-store
65
1
1
65
Total
367
9
25
351
Operating segment:
Americas
165
2
2
165
Asia Pacific
145
5
14
136
EMEA
57
2
9
50
Total
367
9
25
351
14
CROCS, INC. AND SUBSIDIARIES
DIGITAL SALES PERCENTAGE, COMPARABLE RETAIL STORE SALES, AND DIRECT-TO-CONSUMER COMPARABLE SALES
(UNAUDITED)
Digital sales, which includes sales through our company-owned website, third party marketplaces, and e-tailers, as a percent of total revenues, by operating segment were:
Three Months Ended September 30,
Nine Months Ended September 30,
2020
2019
2020
2019
Digital sales as a percent of total revenues:
Americas
30.8
%
26.9
%
38.9
%
28.0
%
Asia Pacific
42.3
%
32.9
%
39.0
%
27.6
%
EMEA
59.8
%
49.6
%
53.5
%
39.6
%
Global
37.7
%
32.2
%
41.8
%
30.3
%
Comparable retail store sales and direct-to-consumer store sales by operating segment are shown below.
Constant Currency (1)
Three Months Ended September 30,
Nine Months Ended September 30,
2020
2019
2020
2019
Comparable retail store sales: (2)
Americas
22.3
%
19.1
%
21.8
%
17.1
%
Asia Pacific
2.8
%
(4.2)
%
(0.8)
%
(1.2)
%
EMEA
(4.7)
%
2.4
%
(5.6)
%
6.3
%
Global
16.2
%
12.5
%
13.0
%
11.4
%
Constant Currency (1)
Three Months Ended September 30,
Nine Months Ended September 30,
2020
2019
2020
2019
Direct-to-consumer comparable sales (includes retail and e-commerce): (2)
Americas
30.7
%
18.5
%
40.1
%
18.6
%
Asia Pacific
5.2
%
11.7
%
10.9
%
5.6
%
EMEA
22.9
%
9.5
%
28.7
%
13.8
%
Global
23.8
%
15.9
%
29.8
%
14.4
%
(1) Reflects period over period change as if the current period results were in constant currency, which is a non-GAAP financial measure. See ‘Reconciliation of GAAP Measures to Non-GAAP Measures’ above for more information.
(2) Comparable store status is determined on a monthly basis. Comparable store sales include the revenues of stores that have been in operation for more than twelve months. Stores in which selling square footage has changed more than 15% as a result of a remodel, expansion, or reduction are excluded until the thirteenth month in which they have comparable prior year sales. Temporarily closed stores are excluded from the comparable store sales calculation during the month of closure. Location closures in excess of three months are excluded until the thirteenth month post re-opening. E-commerce revenues are based on same site sales period over period.
