Q1 Preview: Mailers, Warm Weather Should Have Crocs (CROX) Investors High-Steppin'


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Shares of Crocs (Nasdaq: CROX) are trading higher Wednesday afternoon heading into the clog-maker's first-quarter 2012 report, expected out after the market closes. Crocs will be holding a webcast of the event at 5:00pm EDT following the release. To go to the webcast, click here (note: you will need to submit some info to access the event).

The Street is currently looking for Crocs to report EPS of 26 cents on revs of $266.74 million, from EPS of 24 cents on revs of $226.7 million reported in the same period last year. Crocs has bested views over the last six quarters by an average of 30 percent.

For the upcoming quarter, Crocs guided for EPS of 24 cents to 26 cents and revenue of $263 million to $268 million.

Shares of Crocs gained 42 percent through the quarter to $20.92 at the end of March. Crocs ended 2011 down about 13.7 percent.

Currently, Bloomberg data shows seven analysts with a Buy rating on Crox, two at hold, and one with a Sell. The analyst price target average is $26, which ranges from $21 to $30. Shares of Crocs have traded within the range of $14.20 to $32.47 over the last year.

Into results, Wedbush sees EPS of 26 cents or better. The firm alludes to improving industry metrics from Crocs' point-of-sale data through March. Direct-to-customer sales likely benefited from mailers, of which mini-catalogs were sent to about 1.7 million households containing a $10 off coupon for purchases of $75 or more. Wedbush indicated that conversion rates on those mailings were promising.

Warmer weather and new management in Europe should aid in better at-once orders in the region. The firm commented, "Several mass European retailers have recently released 1Q sales results ahead of expectations, with the exception of Marks & Spencer, which acknowledged that it had purchased inventories too lean in apparel and footwear, suggesting to us that demand in these categories remains solid in the region."

In terms of post-EPS movement, Wedbush notes a slight increase in short interest on Crocs, potentially setting up for more upside on in-line or better results.

Stay tuned to StreetInsider.com's EPS Insider section to see our analysis of the highly-anticipated quarterly results within seconds of their release. You can also check out Crocs' past performance at Streetinsider's Crocs' Income Statement .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Stocks

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