Crocs has reported robust financial results for the second quarter, driven by growth in international markets despite some softness in North America.

The company posted net income of $1.149 billion, significantly impacted by a non-cash goodwill and trademark impairment charge of $737 million related to its Heydude brand. 

Adjusted net income rose to $331 million, surpassing expectations and reflecting improved operational efficiency.

Net sales climbed 3.4 per cent year-over-year to $1.15 billion, led primarily by the core Crocs brand, which generated approximately $960 million, a 5 per cent increase year on year. 

International sales for Crocs surged by 18 per cent, driven by strong demand across Europe, Asia, and Latin America. However, North American sales declined by 6.5 per cent, reflecting cautious consumer spending and reduced promotional activity.

The Heydude brand, which contributed roughly $190 million in revenue, experienced a 3.9 per cent decrease, mainly due to weaker wholesale sales, although direct-to-consumer revenue grew 7.6 per cent.

“While we are pleased by this performance, the current operating environment is uncertain and challenging to predict,” said CEO Andrew Rees. 

“Against this, we have chosen to focus on managing expenses, including the $50 million in cost savings we have already implemented, reducing our inventory receipts, and pulling back on promotional activity to protect brand health in the marketplace.” 

Despite the solid Q2 performance, Crocs issued a cautious outlook for Q3, forecasting a 9 per cent to 11 per cent revenue decline.