Crocs has raised its full-year outlook on both the top and bottom line after recording strong growth during its second quarter.
The company now expects revenues to grow approximately 1-2 per cent, up from the previous guidance of down 1 per cent to up 1 per cent.
Crocs brand is forecast to be up approximately 2-3 per cent, compared with the previous guidance of flat to up 2 per cent. Heydude is expected to decrease 2-4 per cent, versus the prior range of down 5-7 per cent.
This is the second time the company has upgraded its full-year outlook since the start of the fiscal year.
For the quarter ended June 30, consolidated revenues rose 2.6 per cent to $1.179 billion, driven by a 12 per cent uplift in direct-to-consumer sales, offset by a 7.2 per cent drop in wholesale revenues.
Crocs brand boosted sales by 4.3 per cent, surpassing $1 billion in quarterly revenue for the first time. North America revenues remained flat, while international revenues jumped 7.8 per cent.
Heydude sales fell 5.7 per cent, with DTC revenues up 7.2 per cent and wholesale down 17.2 per cent.
On the bottom line, an operating income of $286 million replaced an operating loss of $428 million in the year-ago period. The company also swung to a net income of $204.8 million from last year’s loss of $492 million.
CEO Andrew Rees said the company delivered a stronger-than-expected second quarter, highlighted by record enterprise revenue.
“Our results reflect broad consumer demand across both brands, healthy direct-to-consumer growth, and strong consumer response to new product innovation,” he added.
