Significant Long-Term Growth Potential in Sandals
NON-GAAP RECONCILIATION
Non-GAAP cost of sales, gross profit, and gross margin reconciliation:
Non-GAAP selling, general and administrative expenses reconciliation:
2020
Three Months Ended March 31,
2019
2020
Three Months Ended March 31,
2019
GAAP revenues
GAAP cost of sales
$
(in thousands)
281,160 $
295,949
GAAP revenues
$
(in thousands)
281,160 $
295,949
$
146,998 $
158,334
Other
New distribution centers
Total adjustments
Non-GAAP cost of sales
GAAP gross profit
(1)
(927)
(1,165)
(110)
Donations of inventory
(927)
(1,275)
$
146,071 $
157,059
$
GAAP gross margin
134,162 $
47.7 %
137,615
46.5 %
GAAP selling, general and administrative expenses
COVID-19 impact of bad debt expense
Duplicate headquarters rent (2)
Non-recurring expenses associated with cost reduction initiatives
Other
Total adjustments
Non-GAAP selling, general and administrative expenses (4)
$
113,350 $
105,037
(1)
(2,773)
(1,702)
(207)
(3)
(685)
69
$
(4,613)
108,737 $
(685)
104,352
Non-GAAP gross profit
$
135,089 $
Non-GAAP gross margin
48.0 %
138,890
46.9 %
GAAP selling, general and administrative expenses as a percent of revenues
40.3 %
35.5 %
Non-GAAP selling, general and administrative expenses as a percent of revenues
38.7 %
35.3 %
(1)
(1)
Represents non-recurring expenses related to our distribution centers in Dayton, Ohio and Dordrecht, the Netherlands.
Represents bad debt expense associated with the impact of COVID-19 on wholesale partners in our Asia Pacific segment.
(2)
(3)
Non-recurring expenses associated with cost reduction initiatives in 2019.
As a result of the COVID-19 pandemic, our move to our new headquarters in Broomfield, Colorado has been delayed, resulting in
duplicate rent costs.
(4) Non-GAAP selling, general and administrative expenses are presented gross of tax.
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