Crocs, Inc., home of the Crocs and HeyDude brands, posted consolidated revenues of $1.11 billion in the second quarter, representing a year-over-year increase of 3.6 percent, or 4.8 percent on a constant-currency (CC) basis.
- Direct-to-consumer (DTC) revenues grew 8.9 percent (+10.0 percent CC).
- Wholesale revenues contracted 1.3 percent (flat CC).
Crocs Brand revenues increased 9.7 percent (+11.2 percent CC) to $914 million.
- DTC revenues increased 12.5 percent (+13.8 percent CC) to $479 million.
- Wholesale revenues increased 6.9 percent (+8.6 percent CC) to $435 million.
- North America revenues increased 3.0 percent (+3.2 percent CC) to $489 million.
- International revenues increased 18.7 percent (+22.0 percent CC) to $425 million.
HeyDude Brand revenues decreased 17.5 percent to $198 million.
- DTC revenues decreased 7.6 percent to $84 million.
- Wholesale revenues decreased 23.5 percent to $114 million.
Consolidated gross margin was 61.4 percent of net sales, compared to 57.9 percent in the prior-year Q2 period. Adjusted gross margin improved 330 basis points to 61.4 percent of net sales, compared to 58.1 percent.
Selling, general, and administrative expenses (SG&A) amounted to $356 million, increasing 17.6 percent from $303 million in the prior-year Q2 period, and represented 32.0 percent of revenues.
- Adjusted SG&A of $356 million increased 19.4 percent from $298 million, and represented 32.0 percent of revenues.
Income from operations was $326 million in Q2 increasing 2.3 percent year-over-year from $318 million, resulting in operating margin of 29.3 percent.
- Adjusted income from operations of $326 million increased 0.4 percent from $325 million, resulting in adjusted operating margin of 29.3 percent.
Diluted earnings per share of $3.77 increased 11.2 percent from $3.39.
- Adjusted diluted earnings per share of $4.01 increased 11.7 percent from $3.59.
Image courtesy Crocs, Inc.
See below for additional SGB Media coverage of the Crocs Q2 and lowered guidance.
