American footwear firm Crocs' revenue climbs 3.6% in Q2 FY24

The company's gross margin improved significantly to 61.4 per cent, up from 57.9 per cent in Q2 FY23. The adjusted gross margin also increased by 330 basis points, reaching 61.4 per cent compared to 58.1 per cent in the previous year. Selling, general, and administrative expenses rose by 17.6 per cent to $356 million, representing 32 per cent of revenues. Adjusted selling, general, and administrative expenses were also $356 million, up 19.4 per cent from $298 million, maintaining the same revenue proportion of 32 per cent.

Income from operations increased by 2.3 per cent to $326 million, resulting in an operating margin of 29.3 per cent. Adjusted income from operations showed a marginal increase of 0.4 per cent, totalling $326 million with an adjusted operating margin of 29.3 per cent. Diluted earnings per share (EPS) saw an 11.2 per cent rise to $3.77, while adjusted diluted EPS grew by 11.7 per cent to $4.01, the company said in a media release.

Revenues for the Crocs brand increased by 9.7 per cent to $914 million, or 11.2 per cent on a constant currency basis. DTC revenues for the brand grew by 12.5 per cent to $479 million, and by 13.8 per cent on a constant currency basis. Wholesale revenues increased by 6.9 per cent to $435 million, or 8.6 per cent on a constant currency basis. Geographically, North America revenues rose by 3 per cent to $489 million, or 3.2 per cent on a constant currency basis. International revenues surged by 18.7 per cent to $425 million, or 22.0 per cent on a constant currency basis.

In contrast, the Heydude brand faced challenges with revenues decreasing by 17.5 per cent to $198 million. DTC revenues for Heydude fell by 7.6 per cent to $84 million, while wholesale revenues declined by 23.5 per cent to $114 million.

"We reported record second quarter results on both the top and bottom line which exceeded our guidance on all Enterprise metrics," said Andrew Rees, chief executive officer. "Strength in the quarter was led by our Crocs Brand with exceptional growth internationally. As it relates to Heydude, we are making improvements to support long-term brand health and are focused on driving brand heat by accelerating marketing in the second half of the year."

Fibre2Fashion News Desk (DP)