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Point72 Asset Management adds to its position in Crocs Inc.

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Point72 and Crocs

Point72 Asset Management added to its position in Crocs, Inc. (CROX). A 13G filing in January noted that the fund owns 5,370,555 shares. This is up from the 4,924,200 shares reported in the fund’s 3Q14 portfolio. The filing said the fund owns a passive stake of 6.5% in the company.

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Overview of Crocs

Crocs is a designer, developer, manufacturer, worldwide marketer, and distributor of casual lifestyle footwear, apparel, and accessories for men, women, and children. The company sells its products in more than 90 countries.

The company’s products include footwear and accessories that utilize its proprietary Croslite. This unique material enables Crocs to produce innovative, lightweight, non-marking, and odor-resistant footwear.

Gregg Ribatt named as CEO

Veteran footwear and apparel industry executive Gregg Ribatt will join Crocs as CEO in late January 2015. The company recently also made changes to its global management team with industry veterans. The company noted, “It is excited to enrich its team as it focuses on the future and potential growth opportunities of the Crocs brand.”

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Crocs’ 3Q14 results

  • Generally accepted accounting principles (or GAAP) revenue increased 4.8% year-over-year (or YoY) to $302.4 million, which is in line with the expectations.
  • GAAP net income was $0.12 per diluted common share.
  • In Europe, revenues were up 13%, driven by solid wholesale growth.
  • In the Americas, revenues increased 10%, driven by improvement in US same-store sales trends.
  • In Asia, revenues declined slightly due to weak performance in China. A high level of existing inventory in Crocs partner store networks impacted China revenues. Retail sales at comparable stores declined by double digits in China, Korea, and Hong Kong.
  • Global wholesale revenue increased by 8% driven by the company’s Europe and America segments.
  • Global Internet revenue rose 9% driven by its America segment.
  • The company expects GAAP revenue in the range of $200 to $210 million in 4Q14.

Stock repurchases

During the third quarter, Crocs repurchased ~2.9 million shares at an average price of $14.74 a share. Year-to-date, the company repurchased $90 million shares.

Point72’s 13G positions

Point72 Asset Management initiated positions in Jones Energy Inc. (JONE), MEI Pharma Inc. (MEIP), and Catalyst Pharmaceutical Partners, Inc. (CPRX).

The fund increased its positions in Silicon Motion Technology Corp. (SIMO), RCS Capital Corp (RCAP), Kindred Healthcare, Inc. (KND), Crocs, Inc. (CROX), LogMeIn Inc. (LOGM), Kraton Performance Polymers Inc. (KRA), and Walter Investment Management Corp (WAC).

The fund reduced its position in Clearwater Paper Corp (CLW) and Shutterfly, Inc. (SFLY).

In the next part of the series, we’ll discuss Point72’s position change in LogMeIn.

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