Crocs Q2 2023 Earnings Report
Key Takeaways
Crocs, Inc. announced strong second quarter 2023 financial results, achieving record quarterly revenues of over $1 billion, representing an 11.2% increase compared to the previous year. The company's operating margin was 30%, and diluted earnings per share increased by 31.4% to $3.39. They also raised the full year outlook for revenues, operating margin, and earnings per share.
Consolidated revenues increased by 11.2% to $1,072.4 million.
Crocs Brand revenues grew by 13.8% to $833.0 million, driven by Asia revenue growth and North America DTC comparable sales growth.
HEYDUDE Brand DTC revenues increased by 29.7% and digital revenues increased by 36.7%.
Diluted earnings per share increased by 31.4% to $3.39, and the company paid down $299.1 million of debt in the first half of 2023.
Crocs
Crocs
Crocs Revenue by Segment
Crocs Revenue by Geographic Location
Forward Guidance
The company expects revenue to grow approximately 3% to 5% compared to third quarter 2022, adjusted operating margin of approximately 27.0%, and adjusted diluted earnings per share of $3.07 to $3.15 for Q3 2023. For the full year 2023, the company expects consolidated revenue growth to be 12.5% to 14.5%, adjusted operating margin to be approximately 27.5%, and adjusted diluted earnings per share to be between $11.83 and $12.22.
Positive Outlook
- Revenues to grow approximately 3% to 5% compared to third quarter 2022, resulting in revenues of approximately $1,013 million to $1,034 million.
- Adjusted operating margin of approximately 27.0% for Q3 2023.
- Adjusted diluted earnings per share of $3.07 to $3.15 for Q3 2023.
- Consolidated revenue growth to now be 12.5% to 14.5% compared to 2022, resulting in revenues of approximately $4,000 million to $4,065 million.
- Adjusted diluted earnings per share to now be between $11.83 and $12.22 for the full year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income