US footwear firm Crocs' revenue surges 6.2% in Q1 FY24

The company’s gross margin improved to 55.6 per cent, up from 53.9 per cent in the previous year, while adjusted gross margin rose 180 basis points to 56.0 per cent from 54.2 per cent. Despite these gains, selling, general, and administrative expenses surged by 22.5 per cent to $296 million, representing 31.5 per cent of revenues. Adjusted selling, general, and administrative expenses also saw an increase to $271 million, up 16.3 per cent from $233 million, representing 28.8 per cent of revenues, Crocs said in a press release.

Operational income saw a slight dip, with income from operations falling 3.6 per cent to $226 million, resulting in an operating margin of 24.1 per cent. However, adjusted income from operations grew by 3.1 per cent to $255 million, yielding an adjusted operating margin of 27.1 per cent. Earnings performance remained strong, with diluted earnings per share increasing by 4.6 per cent to $2.50, and adjusted diluted earnings per share rising by 15.7 per cent to $3.02.

In a detailed breakdown by brand, the Crocs Brand itself witnessed a 14.6 per cent rise in revenues to $744 million, or 15.6 per cent on a constant currency basis. DTC revenues for this brand increased by 18.3 per cent to $282 million, or 19.0 per cent on a constant currency basis, and wholesale revenues saw a 12.5 per cent rise to $462 million, or 13.8 per cent on a constant currency basis.

Geographically, North America revenues increased by 9.0 per cent to $383 million. International revenues showed significant growth, increasing by 21.3 per cent to $361 million, or 23.6 per cent on a constant currency basis.

However, the Heydude Brand faced challenges, with revenues falling by 17.2 per cent to $195 million. Within this brand, DTC revenues decreased by 11 per cent to $60 million, and wholesale revenues dropped by 19.7 per cent to $135 million.

"We delivered an exceptional first quarter, led by mid-teens growth of our Crocs brand, driven by robust consumer demand both in North America and in international markets." said Andrew Rees, chief executive officer. "Our record revenue, industry-leading gross margins and the power of our diversified business enabled us to raise our full-year adjusted diluted earnings per share outlook."

Fibre2Fashion News Desk (DP)