William Kent Jeffrey J. Lasher - Chief Financial Officer, Principal Accounting Officer and Senior Vice President of Finance

Welcome to the Crocs First Quarter 2014 Earnings Conference Call. I would like to remind everyone that this conference is being recorded. It is my pleasure to turn the conference over to William Kent, Senior Director of Investor Relations. Mr. Kent, please go ahead.

Thank you, Dawn [ph], and thank you all for joining us today for our first quarter 2014 earnings conference call. Yesterday evening, we announced our first quarter 2014 financial results. A copy of the press release can be found on our website at crocs.com. We would like to remind everyone that some information provided in this call will be forward-looking, and accordingly, are subject to Safe Harbor provisions of the Federal Securities Law. These statements include, but are not limited to, statements regarding future revenue and earnings, backlog and future orders, prospects and product pipeline. We caution you that these statements are subject to a number of risks and uncertainties described in the Risk Factors section of the company's 2013 report on Form 10-K filed on February 25, 2014, with the Securities and Exchange Commission. Accordingly, all actual results could differ materially from those described on this call. Those listening to the call are advised to refer to Crocs' Annual Report on Form 10-K, as well as other documents filed with the SEC for additional discussion of these risk factors. Crocs is not obligated to update these forward-looking statements to reflect the impact of future events. The company may refer to certain non-GAAP metrics on this call, including operating income, tax expense, net income and EPS. Explanation of these metrics can be found on the earnings release filed by yesterday. I'll now turn the call over to Jeff Lasher.

Good morning, and thank you for joining us today to review the first quarter 2014 financial results of Crocs, Inc. I will go over the first quarter financial results of operation, the transition of the earnings per share calculation and projections for second quarter 2014 revenue. In total, first quarter revenues increased $0.8 million or 0.2% to $312.4 million compared with 2013. Despite unfavorable exchange rates between the Russian ruble and Japanese yen, year-over-year revenues grew in both the European and Asia-Pacific regions in our first quarter. We continue to face macroeconomic challenges in our Japan segment including the recent change to the consumption tax, lower purchasing power of the yen and lackluster consumer sentiment. The decline of the Japanese yen and Russian ruble adversely impacted year-over-year March quarter revenues by almost $4 million and operating income by approximately $1 million. In addition, we continue to see challenges in our Americas wholesale channel as a countering lean on inventory. Despite the timing of the Easter holiday and difficult retail markets in certain areas around the globe, we experienced a $6.1 million or 8.6% increase in retail channel revenues on a constant-currency basis. This was primarily driven by the addition of 76 global retail locations net of store closures, offset partially by 1.5% decrease in comparable store sales compared to prior year. Internet sales for the quarter were down 3% from prior year. With regards to products, the first quarter revenue growth was predominately driven by a global average selling price increase of 2.5%, primarily driven by new product introductions and the mix shift from clog to non-clog styles such as men's loafers and women's wedges. Unit volume decreased 2% to just under 15 million pairs. As we continue to diversify our product line of new footwear lines such as the…

Thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect.