Crocs reported a drop in first-quarter sales, but management raised full-year guidance, praising the company’s “outperformance”.
Crocs’s consolidated revenues for the quarter ended March 31 slid 1.7 per cent to $921 million (down 4 per cent in constant currency).
At the Crocs brand, sales edged up 0.8 per cent on a reported basis but decreased 1.9 per cent on a constant currency basis. North America revenues dropped 6.1 per cent, while international revenues rose 7.2 per cent on a reported basis.
HeyDude remained deep in the negative territory, but the brand’s 12.3 per cent decline was considered an improvement compared to a 16.9 per cent decrease in last year’s fourth quarter.
On the bottom line, operating income fell 9.9 per cent from $223 million, and net income slid 14 per cent to $137.5 million.
CEO Andrew Rees said the results were better than expected, fueled by “broad consumer relevance” for the two brands.
“We are encouraged by strong consumer response to product newness across categories, supported by our high pace of innovation and consistent brand storytelling,” he added.
The company has raised its full-year guidance, expecting revenues to be down approximately 1 per cent to up 1 per cent, compared to the previous guidance of down 1 per cent to up slightly.
Crocs brand sales are forecast to be flat to up 2 per cent. Heydude is expected to be down 5-7 per cent, up from the previous guidance of down 7-9 per cent.
