Crocs continues to log stellar sales growth, although the company admits its secondary brand, HeyDude, is performing well below its potential.
The company saw first-quarter net income increase 1.9 per cent year over year to $152.5 million as revenue rose 6 per cent to $939 million.
The Crocs brand’s revenue climbed 14.6 per cent to $744 million, with North American revenue jumping 9 per cent to $383 million and international revenue soaring 21.3 per cent to $361 million.
However, the HeyDude brand’s revenue plummeted 17.2 per cent to $195 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 the international market,” said Andrew Rees, Crocs CEO.
“As we continue to prioritize brand health in the North American market for HeyDude, and considering what we are seeing quarter-to-date, we are reducing our revenue expectations for the brand for the balance of the year,” said Rees.
“We are confident in the long-term opportunity for the HeyDude brand and are excited to welcome a new HeyDude president to fully unlock its future potential.”
For the full year, Crocs forecasts the group’s revenue to rise between 3 per cent and 5 per cent.
The company estimates the Crocs brand’s revenue to grow 7 per cent to 9 per cent and the Heydude brand’s revenue to contract 10 per cent.
Meanwhile, the company has named Susan Healy (pictured above) as EVP and CFO, effective June 3.
Healy will succeed Anne Mehlman, who was recently appointed president of the Crocs brand.
Prior to joining Crocs, Healy served as CFO at IAA. She also previously served as SVP for finance at Ulta Beauty.
