Crocs’ Q2 Business Driven by Double-Digit Gains Outside N.A., Heydude
Simultaneous with the release of second quarter results last week and a significant decline in its operating margin for the period, Crocs lowered its fiscal year guidance. The company is now forecasting a 14-17 percent constant currency increase in revenues for the Crocs brand (10-13% on a reported basis) for the fiscal year to between $2.545-$2.615 billion. Annual company revenue is seen between $3.395-$3.505 billion with the Heydude business contributing $850-890 million in sales.
In Q2, Crocs brand revenues increased 14.3 percent on a reported basis to $732.2 million.. Digital sales rose 16.8 percent to represent 37.2 percent of brand revenues. Wholesale revenues were 80.6 percent higher year-over-year. A 7.6-percent reported growth rate to $422.9 million in North American sales trailed increases in EMEALA (+32.8%) to $160.4 million, and in the APAC region. Up 17.4 percent to $148.9 million.