Crocs 2nd quarter profit beats Street on strong Asia sales

Crocs Inc reported a quarterly profit that beat Wall Street expectations helped by higher gross margins and growth in Asia, and the shoe maker forecast strong full-year earnings.

Crocs, which sells its footwear in more than 90 countries, said it expects a full-year profit of $1.50 to $1.54 per share.

Analysts on average are expecting earnings of $1.47 per share, according to Thomson Reuters I/B/E/S.

Crocs, which is trying to tap into the strong demand in emerging markets such as India and China, expects Asia to become its biggest market by the end of 2013. Sales in Asia, which accounts for 44 percent of the company’s revenue rose 20.5 percent in the second quarter.

Gross margins rose to 59.3 percent in the second quarter from 57.6 percent last year.

Net income at the company, known for its colorful clogs, rose to $61.5 million, or 68 cents per share, up from $55.5 million, or 61 cents per share, a year earlier.

Analysts were expecting earnings of 63 cents per share.

Revenue rose 12 percent to $330.9 million, but missed analyst expectations of $339.9 million.

Shares of the company, which competes with Deckers Outdoor Corp, Skechers USA Inc and Steve Madden Ltd , were up 4 percent after the bell. They closed at $13.89 on Wednesday on the Nasdaq.

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