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8-K - 8-K - Crocs, Inc.a16-15816_18k.htm

Exhibit 99.1

 

 

Investor Contact:

Brendon Frey, ICR

 

 

(203) 682-8200

 

 

Brendon.Frey@icrinc.com

 

Media Contact:

Patrick Rich/Crocs, Inc.

 

 

(303) 848-7000

 

 

prich@crocs.com

 

Crocs, Inc. Reports Second Quarter 2016 Financial Results

 

NIWOT, COLORADO — August 3, 2016 — Crocs, Inc. (NASDAQ: CROX) today reported financial results for the three months ended June 30, 2016.

 

Second Quarter Highlights:

 

· Revenue decreased 6.3% to $323.8 million compared to the three months ended June 30, 2015. On a constant currency basis, revenue decreased 6.2%.

 

· Net income attributable to common stockholders on a GAAP basis increased 21.1% to $11.7 million or $0.13 per diluted share, compared to the three months ended June 30, 2015.

 

Gregg Ribatt, Chief Executive Officer, said: “Despite a decline in our revenue, I am encouraged by our strategic progress which has enabled us to help mitigate the top-line pressure on profitability by delivering better than expected gross margins and managing expenses while reducing inventories. The global retail environment became more challenging as the second quarter progressed. This impacted our wholesale reorder opportunities and contributed to our sales shortfall relative to expectations. These headwinds were partially offset by a 2.9% increase in global direct-to-consumer comparable store sales, which is a positive indication that consumers are responding favorably to our new product line and enhanced marketing efforts. We remain confident that we have successfully repositioned the business and built the platform to provide sustained growth and profitability over the long-term.”

 

Second Quarter Operating Results

 

In the second quarter of 2016, the company reported GAAP net income attributable to common stockholders of $11.7 million or $0.13 per diluted share, compared with net income attributable to common stockholders of $9.7 million or $0.11 per diluted share in the same quarter of the prior year.

 

As outlined in detail in the non-GAAP reconciliations set forth later in this press release, the company recorded net charges of $0.3 million unrelated to our core business in the three months ended June 30, 2016, compared with $17.6 million in the three months ended June 30, 2015. Excluding these items, the company reported on a comparable basis, non-GAAP adjusted net income attributable to common shareholders of $12.0 million in the three months ended June 30, 2016, versus non-GAAP adjusted net income attributable to common shareholders of $27.3 million in the three months ended June 30, 2015.

 

For the three months ended June 30, 2016, the company had 73.4 million weighted average common shares outstanding and 74.2 million diluted shares outstanding. The company did not repurchase any shares during the three months ended June 30, 2016.

 



 

Balance Sheet

 

Cash and cash equivalents as of June 30, 2016 were $146.7 million compared with $143.3 million as of December 31, 2015. Inventory was $169.9 million as of June 30, 2016 compared to $168.2 million as of December 31, 2015.

 

Financial Outlook

 

The company expects third quarter 2016 revenue in the $245.0 to $255.0 million range compared to $274.1 million in the third quarter 2015. For the full year the company expects revenue to be down low single digits compared to the year ended December 31, 2015. This guidance reflects the more cautious retail environment and the slower turnaround in China.

 

Conference Call Information

 

A teleconference call to discuss second quarter 2016 results is scheduled for today, Wednesday, August 3, 2016, at 8:30 am EDT. The call participation number is (888) 771-4371. A recording of the conference call will be available two hours after the completion of the call at (888) 843-7419. International participants can dial (847) 585-4405 to take part in the conference call and can access a replay of the call at (630) 652-3042. All of the above calls will require the input of the conference identification number 43001502. The call also will be streamed on the Crocs website, www.crocs.com. An audio recording of the conference call will be available at www.crocs.com through August 3, 2017.

 

About Crocs, Inc.

 

Crocs, Inc. is a world leader in innovative casual footwear for men, women, and children. Crocs offers a broad portfolio of all-season products, while remaining true to its core molded footwear heritage. All Crocs™ shoes feature Croslite™ material, a proprietary, revolutionary technology that gives each pair of shoes the soft, comfortable, lightweight, non-marking and odor-resistant qualities that Crocs fans know and love. Crocs celebrates the fun of being a little different and encourages fans to “Find Your Fun” in every colorful pair of shoes. Since its inception in 2002, Crocs has sold more than 300 million pairs of shoes in more than 65 countries around the world.

 

Visit www.crocs.com for additional information.

 

The matters regarding the future discussed in this news release include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding prospects, investments in our business and outlook. 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: macroeconomic issues, including, but not limited to, the current global financial conditions; the effect of competition in our industry; our ability to effectively manage our future growth or declines in revenue; changing fashion trends; 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 speaks as of August 3, 2016. We do not undertake any obligation to update publicly any forward-looking statements, including, without limitation, any estimate regarding revenues or earnings, whether as a result of the receipt of new information, future events, or otherwise.

 



 

CROCS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(in thousands, except per share data)

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2016

 

2015

 

2016

 

2015

 

Revenues

 

$

323,828

 

$

345,671

 

$

602,968

 

$

607,864

 

Cost of sales

 

154,188

 

155,801

 

303,962

 

290,624

 

Gross profit

 

169,640

 

189,870

 

299,006

 

317,240

 

Selling, general and administrative expenses

 

148,463

 

168,636

 

263,393

 

294,705

 

Asset impairment charges

 

572

 

2,075

 

765

 

2,075

 

Restructuring charges

 

 

2,810

 

 

6,473

 

Income from operations

 

20,605

 

16,349

 

34,848

 

13,987

 

Foreign currency transaction gain (loss), net

 

(1,700

)

(217

)

(2,947

)

277

 

Interest income

 

164

 

196

 

380

 

484

 

Interest expense

 

(234

)

(260

)

(477

)

(479

)

Other expense, net

 

(189

)

(80

)

(107

)

(411

)

Income before income taxes

 

18,646

 

15,988

 

31,697

 

13,858

 

Income tax expense

 

(3,109

)

(2,562

)

(6,014

)

(2,857

)

Net income

 

$

15,537

 

$

13,426

 

$

25,683

 

$

11,001

 

 

 

 

 

 

 

 

 

 

 

Dividends on Series A convertible preferred stock

 

$

(3,000

)

$

(3,000

)

$

(6,000

)

$

(5,833

)

Dividend equivalents on Series A convertible preferred shares related to redemption value accretion and beneficial conversion feature

 

(802

)

(736

)

(1,587

)

(1,457

)

Net income attributable to common stockholders

 

$

11,735

 

$

9,690

 

$

18,096

 

$

3,711

 

Net income per common share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.13

 

$

0.11

 

$

0.21

 

$

0.04

 

Diluted

 

$

0.13

 

$

0.11

 

$

0.20

 

$

0.04

 

 



 

CROCS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

(UNAUDITED)

 

In addition to financial measures presented on the basis of accounting principles generally accepted in the United States of America (“U.S. GAAP”), we present “Non-GAAP selling, general, and administrative expenses”, “Non-GAAP cost of sales”, and “Non-GAAP adjusted net income attributable to common stockholders”, which are non-GAAP financial measures. Adjusted results exclude the impact of items that management believes affect the comparability or underlying business trends in our 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 U.S. GAAP. Constant currency represents current period results that have been restated using prior year average foreign exchange rates for the comparative period to enhance the visibility of the underlying business trends excluding the impact of foreign currency exchange rate fluctuations.

 

Management uses adjusted results to assist in comparing business trends from period to period on a consistent non-GAAP 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 consolidated financial statements as an additional tool for evaluating operating performance. We believe they also provide a useful baseline for analyzing trends in our operations. Investors should not consider these non-GAAP measures in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP.

 



 

CROCS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

(UNAUDITED)

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2016

 

2015

 

2016

 

2015

 

 

 

(in thousands)

 

Selling, general and administrative expenses reconciliation:

 

 

 

 

 

 

 

 

 

U.S. GAAP selling, general and administrative expenses

 

$

148,463

 

$

168,636

 

$

263,393

 

$

294,705

 

Reorganization charges (1)

 

(274

)

(2,154

)

(458

)

(3,553

)

Customs audit settlements (2)

 

 

 

(354

)

 

Improper disbursements (3)

 

 

(5,022

)

 

(5,022

)

ERP implementation (4)

 

 

(2,739

)

 

(8,387

)

Legal settlements (5)

 

 

(1,801

)

 

(1,801

)

Total selling, general and administrative adjustments

 

(274

)

(11,716

)

(812

)

(18,763

)

Non-GAAP selling, general and administrative expenses

 

$

148,189

 

$

156,920

 

$

262,581

 

$

275,942

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2016

 

2015

 

2016

 

2015

 

 

 

(in thousands)

 

Cost of sales reconciliation:

 

 

 

 

 

 

 

 

 

U.S. GAAP cost of sales

 

$

154,188

 

$

155,801

 

$

303,962

 

$

290,624

 

Favorable settlement of customs audit (6)

 

 

 

650

 

 

Statutory audits (7)

 

 

(1,000

)

 

(1,000

)

Non-GAAP cost of sales

 

$

154,188

 

$

154,801

 

$

304,612

 

$

289,624

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2016

 

2015

 

2016

 

2015

 

 

 

(in thousands)

 

Net income attributable to common stockholders reconciliation:

 

 

 

 

 

 

 

 

 

U.S. GAAP net income attributable to common stockholders

 

$

11,735

 

$

9,690

 

$

18,096

 

$

3,711

 

Reorganization charges (1)

 

274

 

2,154

 

458

 

3,553

 

Favorable settlement of customs audit (6)

 

 

 

(650

)

 

Customs audit settlements (2)

 

 

 

354

 

 

Improper disbursements (3)

 

 

5,022

 

 

5,022

 

Restructuring charges (8)

 

 

2,810

 

 

6,473

 

ERP implementation (4)

 

 

2,739

 

 

8,387

 

Asset impairment charges (9)

 

 

2,075

 

 

2,075

 

Legal settlements (5)

 

 

1,801

 

 

1,801

 

Statutory audits (7)

 

 

1,000

 

 

1,000

 

Total adjustments

 

274

 

17,601

 

162

 

28,311

 

Non-GAAP adjusted net income attributable to common stockholders

 

$

12,009

 

$

27,291

 

$

18,258

 

$

32,022

 

 



 


(1) Relates to severance expenses, bonuses, store closure costs, consulting fees and other expenses related to recent reorganization activities and our investment agreement with Blackstone.

 

(2) Represents penalties and fees related to the settlement of customs audits.

 

(3) Represents legal expenses and other expenses for matters surrounding disbursements to invalid vendors that occurred in 2015.

 

(4) Represents operating expenses incurred in 2015 related to the implementation of the new ERP system.

 

(5) Relates primarily to legal expenses for matters surrounding California wage settlements that occurred in 2015.

 

(6) Represents the release of the reserve due to favorable settlement terms of customs audits.

 

(7) Represents expenses incurred related to statutory audits.

 

(8) Relates to bonuses, consulting fees, and other expenses related to recent restructuring activities that concluded in December 2015.

 

(9) Represents retail asset impairment charges for certain underperforming locations in our Americas, Asia Pacific and Europe segments.

 



 

CROCS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands, except number of shares)

 

 

 

June 30,
2016

 

December 31,
2015

 

 

 

(in thousands)

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

146,662

 

$

143,341

 

Accounts receivable, net of allowances of $55,953 and $49,364, respectively

 

134,155

 

83,616

 

Inventories

 

169,853

 

168,192

 

Income tax receivable

 

10,184

 

10,233

 

Other receivables

 

21,266

 

14,233

 

Prepaid expenses and other assets

 

31,270

 

26,334

 

Total current assets

 

513,390

 

445,949

 

Property and equipment, net

 

46,409

 

49,490

 

Intangible assets, net

 

77,393

 

82,297

 

Goodwill

 

2,561

 

1,973

 

Deferred tax assets, net

 

6,612

 

6,608

 

Other assets

 

20,031

 

21,703

 

Total assets

 

$

666,396

 

$

608,020

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

73,429

 

$

63,336

 

Accrued expenses and other liabilities

 

105,404

 

92,573

 

Income taxes payable

 

8,793

 

6,416

 

Current portion of borrowings and capital lease obligations

 

4,993

 

4,772

 

Total current liabilities

 

192,619

 

167,097

 

Long-term income tax payable

 

4,810

 

4,547

 

Long-term borrowings and capital lease obligations

 

329

 

1,627

 

Other liabilities

 

13,606

 

13,120

 

Total liabilities

 

211,364

 

186,391

 

Commitments and contingencies:

 

 

 

 

 

Series A convertible preferred stock, par value $0.001 per share, 1,000,000 shares authorized, 200,000 shares issued and outstanding, redemption amount and liquidation preference of $203,000 and $203,000 as of June 30, 2016 and December 31, 2015, respectively

 

177,244

 

175,657

 

Stockholders’ equity:

 

 

 

 

 

Preferred stock, par value $0.001 per share, 4,000,000 shares authorized, none outstanding

 

 

 

Common stock, par value $0.001 per share, 250,000,000 shares authorized, 93,760,311 and 73,481,889 shares issued and outstanding, respectively, as of June 30, 2016 and 93,101,007 and 72,851,418 shares issued and outstanding, respectively, as of December 31, 2015

 

95

 

94

 

Treasury stock, at cost, 20,278,422 and 20,249,589 shares as of June 30, 2016 and December 31, 2015, respectively

 

(284,176

)

(283,913

)

Additional paid-in capital

 

359,554

 

353,241

 

Retained earnings

 

246,557

 

227,463

 

Accumulated other comprehensive loss

 

(44,242

)

(50,913

)

Total stockholders’ equity

 

277,788

 

245,972

 

Total liabilities and stockholders’ equity

 

$

666,396

 

$

608,020

 

 



 

The following tables summarize our total revenue by channel for the three and six months ended June 30, 2016 and 2015:

 

 

 

Three Months Ended June 30,

 

Change

 

Constant Currency Change (1)

 

 

 

2016

 

2015

 

$

 

%

 

$

 

%

 

 

 

(in thousands)

 

Wholesale:

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

54,620

 

$

65,250

 

$

(10,630

)

(16.3

)%

$

(9,845

)

(15.1

)%

Asia Pacific

 

74,640

 

92,824

 

(18,184

)

(19.6

)%

(19,692

)

(21.2

)%

Europe

 

36,192

 

30,807

 

5,385

 

17.5

%

5,306

 

17.2

%

Other businesses

 

225

 

327

 

(102

)

(31.2

)%

(104

)

(31.8

)%

Total wholesale

 

165,677

 

189,208

 

(23,531

)

(12.4

)%

(24,335

)

(12.9

)%

Retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

57,786

 

58,309

 

(523

)

(0.9

)%

(397

)

(0.7

)%

Asia Pacific

 

41,319

 

45,898

 

(4,579

)

(10.0

)%

(4,498

)

(9.8

)%

Europe

 

13,950

 

14,522

 

(572

)

(3.9

)%

223

 

1.5

%

Total retail

 

113,055

 

118,729

 

(5,674

)

(4.8

)%

(4,672

)

(3.9

)%

E-commerce:

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

22,691

 

19,560

 

3,131

 

16.0

%

3,196

 

16.3

%

Asia Pacific

 

14,887

 

10,835

 

4,052

 

37.4

%

4,423

 

40.8

%

Europe

 

7,518

 

7,339

 

179

 

2.4

%

(17

)

(0.2

)%

Total e-commerce

 

45,096

 

37,734

 

7,362

 

19.5

%

7,602

 

20.1

%

Total revenues

 

$

323,828

 

$

345,671

 

$

(21,843

)

(6.3

)%

$

(21,405

)

(6.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

135,097

 

$

143,119

 

$

(8,022

)

(5.6

)%

$

(7,046

)

(4.9

)%

Asia Pacific

 

130,846

 

149,557

 

(18,711

)

(12.5

)%

(19,767

)

(13.2

)%

Europe

 

57,660

 

52,668

 

4,992

 

9.5

%

5,512

 

10.5

%

Total segment revenues

 

323,603

 

345,344

 

(21,741

)

(6.3

)%

(21,301

)

(6.2

)%

Other businesses

 

225

 

327

 

(102

)

(31.2

)%

(104

)

(31.8

)%

Total consolidated revenues

 

$

323,828

 

$

345,671

 

$

(21,843

)

(6.3

)%

$

(21,405

)

(6.2

)%

 


(1)  Reflects year over year change as if the current period results were in “constant currency,” which is a non-GAAP financial measure. See “Use of Non-GAAP Financial Measures” above for more information.

 



 

 

 

Six Months Ended June 30,

 

Change

 

Constant Currency Change (1)

 

 

 

2016

 

2015

 

$

 

%

 

$

 

%

 

 

 

(in thousands)

 

Wholesale:

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

128,775

 

$

126,427

 

$

2,348

 

1.9

%

$

5,258

 

4.2

%

Asia Pacific

 

151,793

 

165,319

 

(13,526

)

(8.2

)%

(13,030

)

(7.9

)%

Europe

 

75,254

 

75,460

 

(206

)

(0.3

)%

695

 

0.9

%

Other businesses

 

397

 

552

 

(155

)

(28.1

)%

(156

)

(28.3

)%

Total wholesale

 

356,219

 

367,758

 

(11,539

)

(3.1

)%

(7,233

)

(2.0

)%

Retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

93,535

 

92,925

 

610

 

0.7

%

843

 

0.9

%

Asia Pacific

 

63,838

 

69,244

 

(5,406

)

(7.8

)%

(4,354

)

(6.3

)%

Europe

 

21,505

 

22,933

 

(1,428

)

(6.2

)%

(113

)

(0.5

)%

Total retail

 

178,878

 

185,102

 

(6,224

)

(3.4

)%

(3,624

)

(2.0

)%

E-commerce:

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

36,917

 

29,536

 

7,381

 

25.0

%

7,531

 

25.5

%

Asia Pacific

 

19,716

 

14,769

 

4,947

 

33.5

%

5,496

 

37.2

%

Europe

 

11,238

 

10,699

 

539

 

5.0

%

489

 

4.6

%

Total e-commerce

 

67,871

 

55,004

 

12,867

 

23.4

%

13,516

 

24.6

%

Total revenues

 

$

602,968

 

$

607,864

 

$

(4,896

)

(0.8

)%

$

2,659

 

0.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

259,227

 

$

248,888

 

$

10,339

 

4.2

%

$

13,632

 

5.5

%

Asia Pacific

 

235,347

 

249,332

 

(13,985

)

(5.6

)%

(11,888

)

(4.8

)%

Europe

 

107,997

 

109,092

 

(1,095

)

(1.0

)%

1,071

 

1.0

%

Total segment revenues

 

602,571

 

607,312

 

(4,741

)

(0.8

)%

2,815

 

0.5

%

Other businesses

 

397

 

552

 

(155

)

(28.1

)%

(156

)

(28.3

)%

Total consolidated revenues

 

$

602,968

 

$

607,864

 

$

(4,896

)

(0.8

)%

$

2,659

 

0.4

%

 


(1) Reflects year over year change as if the current period results were in “constant currency,” which is a non-GAAP financial measure. See “Use of Non-GAAP Financial Measures” above for more information.

 



 

CROCS, INC. SUBSIDIARIES

RETAIL STORE COUNTS

(UNAUDITED)

 

 

 

March 31,
2016

 

Opened

 

Closed

 

June 30, 2016

 

Company-operated retail locations

 

 

 

 

 

 

 

 

 

Type

 

 

 

 

 

 

 

 

 

Kiosk/store in store

 

97

 

7

 

1

 

103

 

Retail stores

 

265

 

9

 

21

 

253

 

Outlet stores

 

188

 

15

 

1

 

202

 

Total

 

550

 

31

 

23

 

558

 

Operating segment

 

 

 

 

 

 

 

 

 

Americas

 

196

 

2

 

3

 

195

 

Asia Pacific

 

254

 

22

 

18

 

258

 

Europe

 

100

 

7

(1)

2

 

105

 

Total

 

550

 

31

 

23

 

558

 

 

 

 

December 31,
2015

 

Opened

 

Closed

 

June 30, 2016

 

Company-operated retail locations

 

 

 

 

 

 

 

 

 

Type

 

 

 

 

 

 

 

 

 

Kiosk/store in store

 

98

 

9

 

4

 

103

 

Retail stores

 

275

 

10

 

32

 

253

 

Outlet stores

 

186

 

18

 

2

 

202

 

Total

 

559

 

37

 

38

 

558

 

Operating segment

 

 

 

 

 

 

 

 

 

Americas

 

196

 

3

 

4

 

195

 

Asia Pacific

 

261

 

27

 

30

 

258

 

Europe

 

102

 

7

(1)

4

 

105

 

Total

 

559

 

37

 

38

 

558

 

 


(1)  Includes retail locations acquired in Austria on March 31, 2016 as revenue associated with those locations began to be recognized in the three months ended June 30, 2016.

 



 

CROCS, INC. AND SUBSIDIARIES

COMPARABLE STORE SALES

RETAIL AND DIRECT TO CONSUMER

(UNAUDITED)

 

 

 

Constant Currency (2)

 

Constant Currency (2)

 

 

 

Three Months Ended

 

Three Months Ended

 

 

 

June 30, 2016

 

June 30, 2015

 

Comparable store sales (retail only) (1)

 

 

 

 

 

Americas

 

(2.5

)%

(3.4

)%

Asia Pacific

 

(6.8

)%

(9.4

)%

Europe

 

1.8

%

0.3

%

Global

 

(3.4

)%

(5.1

)%

 

 

 

Constant Currency (2)

 

Constant Currency (2)

 

 

 

Three Months Ended

 

Three Months Ended

 

 

 

June 30, 2016

 

June 30, 2015

 

Direct to Consumer comparable store sales (includes retail and e-commerce) (1)

 

 

 

 

 

Americas

 

2.4

%

4.1

%

Asia Pacific

 

4.3

%

(0.6

)%

Europe

 

1.6

%

8.6

%

Global

 

2.9

%

3.2

%

 

 

 

Constant Currency (2)

 

Constant Currency (2)

 

 

 

Six Months Ended

 

Six Months Ended

 

 

 

June 30, 2016

 

June 30, 2015

 

Comparable store sales (retail only) (1)

 

 

 

 

 

Americas

 

(0.5

)%

(4.3

)%

Asia Pacific

 

(3.7

)%

(9.4

)%

Europe

 

3.9

%

2.3

%

Global

 

(1.0

)%

(5.2

)%

 

 

 

Constant Currency (2)

 

Constant Currency (2)

 

 

 

Six Months Ended

 

Six Months Ended

 

 

 

June 30, 2016

 

June 30, 2015

 

Direct to Consumer comparable store sales (includes retail and e-commerce) (1)

 

 

 

 

 

Americas

 

5.9

%

0.9

%

Asia Pacific

 

4.8

%

(2.3

)%

Europe

 

4.4

%

6.2

%

Global

 

5.4

%

0.7

%

 


(1) Comparable store status is determined on a monthly basis. Comparable store sales includes the revenue 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 revenue is based on same site sales period over period.

 



 

(2) Reflects quarter-over-quarter and year-over-year change as if the current period results were in “constant currency,” which is a non-GAAP financial measure. Constant currency is a measure utilized by management in which current period results have been restated using prior year average foreign exchange rates for the comparative period to enhance the visibility of the underlying business trends by excluding the impact of foreign currency exchange rate fluctuations. We do not suggest that investors should consider this non-GAAP measure in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP.