Companies

Crocs raises full year earnings outlook

Aug 2, 2024 United States

The US-based casual footwear company has reported a solid second quarter, driven by a strong performance of the Crocs brand internationally, and raised its full year earnings outlook as a result

“We reported record second quarter results on both the top and bottom line which exceeded our guidance on all Enterprise metrics. Strength in the quarter was led by our Crocs Brand with exceptional growth internationally. As it relates to HEYDUDE, we are making improvements to support long-term brand health and are focused on driving brand heat by accelerating marketing in the second half of the year”, commented Andrew Rees, Chief Executive Officer.

Second Quarter Results

In the second quarter of 2024, Crocs recorded a revenue of 1.11 billion US dollars, an increase of 3.6%, or 4.8% on a constant currency basis, as compared to the same period of fiscal 2023. While direct-to-consumer (DTC) revenue grew by 8.9%, or 10% on a constant currency basis, wholesale revenue decreased by 1.3% and was flat on a constant currency basis.

Crocs brand revenue in the three months to June reached 914 million euros, up by 9.7%, or 11.2% on a constant currency basis, against the same period of the previous year. DTC revenue grew by 12.5%, or 13.8% on a constant currency basis, to 479 million US dollars and wholesale revenue increased by 6.9%, or 8.6% on a constant currency basis, to 435 million euros.

But it should be noted that the brand’s international performance was particularly strong, with sales up by 18.7%, or 22.0% on a constant currency basis, to 425 million US dollars; in North America, sales increased by 3.0%, or 3.2% on a constant currency basis, as compared to the same quarter of 2023.

On the contrary, in the second quarter of 2024, Heydude’s revenue declined by 17.6% to 198 million euros, on a comparable basis to a similar period of the prior year. Wholesale revenue fell sharply by 23.5% year-on-year to 114 million euros and DTC revenue fell by 7.6% year-on-year to 84 million euros.

In the three months to the 30^thof June, the company’s gross margin improved to 61.4% from 57.9% in the same period of last year; adjusted gross margin also improved to 61.4% from 58.1%.

In the second quarter of the current fiscal year, Crocs reported an increase of 11.2% in diluted earnings per share to 3.77 US dollars and an increase of 11.7% in adjusted diluted earnings per share to 4.01 US dollars, as compared to the second quarter of the prior year.

Outlook

For the third quarter of 2024, the company expects revenue to be down by 1.5% to up 0.5% over the same period of last year and adjusted diluted earnings per share of between 2.95 to 3.10 US dollars.

However, “based on the strength of our second quarter, we are lifting our operating margin and earnings per share outlook for the fiscal year while maintaining our revenue guidance”, announced Rees.

As a result, while the company still expects full year revenue growth of 3% to 5% as compared to 2023, it now expects full year adjusted diluted earnings per share in the range of 12.45 to 12.90 US dollars, as compared to the previous guidance of 12.25 to 12.73 US dollars.

Image Credits: complex.com

United States Brands Companies Crocs Footwear Quarter Results Results