Footwear brand Crocs saw higher revenue and net income in the third quarter on the back of an increase in Crocs brand sales worldwide.
The company’s revenue rose 6.2 per cent year over year to $1.04 billion in the three months ended September 30.
Crocs brand revenue jumped 11.6 per cent to $798.8 million with the highest sales growth seen in Asia Pacific, where it surged 26.5 per cent to $175.2 million.
Crocs brand sales increased 8 per cent to $480.7 million in North America and 8.3 per cent to $142.8 million in Europe, the Middle East, Africa, and Latin America.
Meanwhile, the revenue of the Heydude brand fell 8.3 per cent to $246.9 million.
“Both our brands gained share during the back-to-school season,” said Andrew Rees, CEO at Crocs.
“During the quarter, we took decisive action around Heydude to accelerate our marketplace management strategy to ensure long-term brand health. As such, we are adjusting our full-year outlook to reflect this shift.”
For the fourth quarter, Crocs estimates revenue will decline by 1 per cent to 4 per cent year on year to a range between $903 million and $938 million.
For the full year, Crocs forecasts revenue of $3.91 billion to $3.94 billion, up by between 10 per cent and 11 per cent.
The company estimated capital expenditures of $125 to $135 million, primarily due to the expansion in distribution including the new Heydude distribution center in Las Vegas.
