Crocs welcomes ‘solid’ Q2 but warns of future uncertainty
It expects revenues to be down by approximately 11% to 9% in Q3, compared to the third quarter of 2024
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Crocs has welcomed a “solid” second quarter, as revenues jumped 3.4% to $1.149bn (£855m), but warned that its third quarter could be hampered by market uncertainty.
Over the period, direct-to-consumer revenues grew by 4.0% while wholesale revenues increased 2.8%.
According to the group, a strong cash flow generation enabled it to return shareholder value through $133m (£99m) in share repurchases, and $105m (£78m) in debt paydown.
Nonetheless, it expects revenues to be down by approximately 11% to 9% in Q3, compared to the third quarter of 2024.
The footwear group cited “continued uncertainty from evolving global trade policy and related pressures around the consumer”.
CEO Andrew Rees said: “We reported a solid second quarter with both our Crocs and HEYDUDE brands contributing to our performance, while delivering the highest ever gross profit quarter in company history.
“While we are pleased by this performance, the current operating environment is uncertain and challenging to predict. Against this, we have chosen to focus on managing expenses including the $50m (£37m) in cost savings we have already implemented, reducing our inventory receipts, and pulling back on promotional activity to protect brand health in the marketplace.”
He added: “Although these actions will impact the topline of our business in the short term, they will position our business to win, drive margin dollars, and support continued cash flow generation longer term.”
