Crocs brand revenues of $798.8m, increased 11.6% or 11.1% on a constant currency basis in Q3, fuelled by Asia revenue growth of 26.5% or 28.6% on a constant currency basis and North America direct-to-consumer comparable sales growth of 10.2%.
The footwear company’s HeyDude brand had a drop in revenue during the third quarter of 8.3% to $246.9m.
Crocs' North America revenues of $480.7m was up 8% or 8.2% on a constant currency basis compared to the same period last year. The Asia Pacific region also saw an increase of 26.5% or 28.6% on a constant currency basis with revenues of $175.2m.
Revenues from Europe, the Middle East, Africa, and Latin America (EMEALA) were $142.8m, showing an increase of 8.3% or 2.7% on a constant currency basis.
"We delivered a strong third quarter, exceeding the high-end of our guidance, led by double-digit revenue growth in our Crocs brand supported by healthy full-price selling and industry-leading operating margins," said CEO Andrew Rees.
Crocs key Q3 results
- Revenues jumped 6.2% to $1.05bn compared to $985m in 2022
- Income from operations rose by 3.7% to $273.9m
- Net income increased to $177m from $169m the previous year.
Crocs' direct-to-consumer revenues increased by 17.8%, while wholesale revenues decreased by 3.6% compared to the previous year.
The company’s operating margin was 26.2% and the adjusted operating margin was 28.3%.
Crocs' financial outlook
Crocs expects revenues to be 1-4% down in Q4 compared to the same period last year, resulting in revenues of $903m to $938m at currency rates as of the end of the last reported period. This is largely due to its Hey Dude brand where Rees said “decisive action” had been taken to ensure the brand’s long-term health.
For the full year, Crocs now expects revenue growth of between 10% and 11%, down from 12-13% or between $3.9bn and $3.94bn, but Hey Dude sales are forecast to grow approximately 4-6% on a reported basis, implying a decline of approximately 4-6% including the period prior to its acquisition.
Adjusted operating margin is expected to be around 27%, with adjusted diluted earnings per share between $11.55 and $11.85.
