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Crocs
🇺🇸 NASDAQ:CROX
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Jun 30, 2024

Crocs Q2 2024 Earnings Report

Crocs, Inc. reported record second quarter revenues and raised full year 2024 earnings per share outlook.

Key Takeaways

Crocs, Inc. reported record second quarter results, exceeding guidance on all Enterprise metrics. The Crocs Brand led growth, with international strength. The company is improving HEYDUDE to support long-term brand health. Based on the strength of the second quarter, the company is lifting its operating margin and earnings per share outlook for the fiscal year while maintaining its revenue guidance.

Consolidated revenues were $1,112 million, an increase of 3.6%, or 4.8% on a constant currency basis.

Diluted earnings per share of $3.77 increased 11.2% from $3.39.

Crocs Brand revenues increased 9.7% to $914 million, or 11.2% on a constant currency basis.

HEYDUDE Brand revenues decreased 17.5% to $198 million.

Total Revenue
$1.11B
Previous year: $1.07B
+3.6%
EPS
$4.01
Previous year: $3.59
+11.7%
Gross Profit
$682M
Previous year: $621M
+9.8%
Cash and Equivalents
$168M
Previous year: $166M
+0.9%
Free Cash Flow
$384M
Previous year: $297M
+29.5%
Total Assets
$4.72B
Previous year: $4.6B
+2.5%

Crocs

Crocs

Crocs Revenue by Segment

Crocs Revenue by Geographic Location

Forward Guidance

With respect to the third quarter of 2024, revenues are expected to be down 1.5% to up 0.5% compared to third quarter 2023. Crocs Brand to grow 3% to 5% compared to third quarter 2023. HEYDUDE Brand to be down 16% to 14% compared to third quarter 2023. Adjusted operating margin of approximately 24.5%. Adjusted diluted earnings per share of $2.95 to $3.10.

Positive Outlook

  • Revenue growth of 3% to 5% compared to 2023.
  • Revenues for the Crocs Brand to grow approximately 7% to 9%.
  • Adjusted operating margin of more than 25%.
  • Combined GAAP tax rate of approximately 21.5% and non-GAAP effective tax rate of approximately 18.0%.
  • Adjusted diluted earnings per share of $12.45 to $12.90.

Challenges Ahead

  • Revenues for the HEYDUDE Brand to be down approximately 10% to 8%.
  • Non-GAAP adjustments of approximately $28 million related to the implementation of a new enterprise resource planning (“ERP”) system for HEYDUDE, and costs to transition to our new HEYDUDE distribution center in Las Vegas, Nevada.
  • Adjusted diluted earnings per share guidance does not assume any impact from potential future share repurchases.
  • Revenues to be down 1.5% to up 0.5% compared to third quarter 2023
  • HEYDUDE Brand to be down 16% to 14% compared to third quarter 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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