Delhi :  reported financial results for the thirdquarter ended September 30, 2012. Revenue for the thirdquarter of 2012 increased 7.5% to $295.6 million compared with revenue of $274.9 million reported in the thirdquarter of 2011.Net income for the third quarter of 2012 was $45.1million, or $0.49per diluted share, compared withnet income of $30.2 million, or $0.33 per diluted share, in the third quarter of 2011.

From a channel perspective, wholesale sales increased 1.5% to $156.2 million compared withsales of $154.0 million in the third quarter of 2011. Internet sales increased 6.0% to $27.1 million compared with sales of $25.6 million in the third quarter of 2011.Retail sales increased 17.7% to $112.2 million compared with sales of $95.3 million in the third quarter of 2011.The company ended the quarter with 499 retail store locations compared with410 locations a year ago. Global same store sales for the third quarter of 2012 increased 1.0% on a currency neutral basis, as the Americas increased 5.5%, Europe increased 0.9%, and Asia declined 6.3%.

Sales growth during the quarter was driven by strength in the Americas andAsia.Geographically, revenue increased 7.4% for the Americas, 11.3% for Asiaand decreased 2.9% for Europe.  On a constant currency basis, revenue increased 8.6% for the Americas, 13.0% for Asia, 7.3% for Europe, and 10.3% globally.

“Our revenue growth during the third quarter reflects the benefit of balanced distribution channels globally.  Our direct to consumer channel in the Americas increased 12% on year-over-year basis, highlighted by a mid single digitsame store sales gain, and our expanded presence in Asia resulted in a direct to consumer sales increase of 17% in that region,” said John McCarvel, President and Chief Executive Officer.  “Our Americas and Asia performance helped to more than offset weakness in the European market, where challenging macroeconomic conditions and foreign currency exchange rate fluctuations continue to pressure our results.  At the same time, we haven’t been fully immune to some of the recent choppiness in Asia, particularly in Japan, where consumer demand slowed as the third quarter progressed.Despite the economic headwinds we faced during quarter, we continued to grow the business and make strategic progress toward our long-term goal of evolving Crocs into a four-season brand.  For the spring summer 2013 season our wholesale pre-books have been strong.  We are excited about the prospects for 2013 as enthusiasm for our products continues to grow and our opportunities globally expand.”

Margins

Gross profit for the third quarter of 2012 increased 9.2% to $160.7 million, or 54.4% as a percentage of sales, from $147.2 million, or 53.5% as a percentage of sales in the same period last year.Selling, General, & Administrative expenses (SG&A) increased 8.1% to $120.7million versus $111.7 million a year ago.As a percentage of sales, SG&A was40.8% compared with40.6% in the third quarter of 2011.

Balance Sheet

Cash and cash equivalents at September 30, 2012 increased 41.8% to $312.6 million compared to $220.4 million at September 30, 2011. Inventories at September 30, 2012 were $187.5 million, up 24.1% compared to inventories at September 30, 2011 of $151.1 million.  Inventory levels during the third quarter of 2012 were partially driven by the 22% increase in retail store locations in the quarter and the need for additional inventory for the 35 to 40 new store openings planned for the fourth quarter of 2012.

Backlog

Backlog at September 30, 2012 increased 33.2% to $395.4 million compared withbacklog of $296.8 million at September 30, 2011.John McCarvel continued “We saw exceptional growth in third quarter of 2012 pre-books as our wholesale customers accelerated their order books to secure sourcing for spring summer deliveries of our hottest new products for 2013, which include the huarache, molded boat shoes, and our women’s wedge line.”

Income Taxes

For the quarter, the company recorded a non-recurring tax benefit of $11.4 million due to a reversal of certain tax provisions and the release of certain valuation allowances associated with deferred tax assets.

Guidance

For the fourthquarter of 2012, the Company expects break-even diluted earnings per share on revenue of $220 million.