Net income was $6,520,000 in the third quarter against a loss of $2,263,000 on sales of $261,064,000, up 7% from $243,273,000 last year. The results sent CROX shares soaring over 30%. Sales were driven by clogs, up 13% and now representing 55% of sales, and sandals, up 21% and now 21% of sales. Those high-margin clog and sandal sales pushed overall gross margin up 250 basis points to 53.3%. SG&A was $4.5 million higher but leveraged 170 b.p. as a percent of sales, including $6.3 million of non-recurring charges. Inventory declined 16% to $117.7 million.
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