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Crocs Beats Q1 Expectations; Lowers 2017 Guidance

Crocs fared better than expected, reporting Wednesday that first-quarter net income rose to $7.2 million from $6.4 million the same period one year prior.

Revenues exceeded guidance, coming in at $267.9 million. On a constant currency basis, revenues decreased 4.4%, compared to the first quarter of 2016.

“During the first quarter of 2017, we continued to execute against our strategic plan to strengthen the Company and brand,” said Crocs’ outgoing CEO Gregg Ribatt in a statement. “Customers responded favorably to our Spring/Summer 2017 product, enabling us to achieve revenues that exceeded our guidance, while simultaneously driving gross margin improvements.”

The brand closed 16 stores during the first quarter and signed agreements to transfer 24 company operated stores to distributors during the second quarter of 2017.

Crocs expects 2017 revenues to be down low single digits compared to 2016. The company previously projected flat revenues.

One retailer that is having success with Crocs is online resale shop, ThreadUp. In a new report, the retailer shared that Crocs resold 58 percent faster than ThreadUp’s daily average, adding that nine out of ten Crocs sell within one month of being listed on the website.

ThreadUp describes consumers’ surge of interest in the polarizing footwear brand as the “Barrymore Effect.” Late last year, actress Drew Barrymore signed on to be the face of Crocs’ Spring ’17 campaign, “Come As You Are.” Since the campaign rolled out, Crocs’ 30-day sell through on ThreadUp has increased from 67 percent to 90 percent.