Crocs sales surge but Heydude disappoints

BROOMFIELD — Iconic casual footwear brand Crocs Inc. (Nasdaq: CROX) kicked up a revenue record in the first quarter of 2024, but the Heydude brand continues to underperform.

Consolidated revenues for Crocs were $939 million in the most recent period, a year-over-year increase of 6.2%.

The Heydude brand, which Crocs bought for $2.5 billion in 2021, accounted for $195 million of that total, down 17.2% compared to the first quarter of 2023. 

Crocs’ income from operations was $226 million in the first quarter of 2024, a year-over-year decrease of 3.6%, while the 2024 first quarter diluted earnings per share of $2.50 were up 4.6% from the same period last year. 

“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 international markets.” Crocs CEO Andrew Rees said in a prepared statement. “Our record revenue, industry-leading gross margins and the power of our diversified business enabled us to raise our full-year adjusted diluted earnings per share outlook.”

Looking ahead, Crocs expects full-year 2024 sales growth of 3% to 5% over last year, but Heydude sales could contract by 8% to 10%.

“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. 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.”

Terence Reilly, formerly the president of trendy drinkwear maker Stanley Brand, was hired in April to run the Heydude brand. Reilly’s hiring marks a return to Crocs for the 56 year old, who previously served as the footwear company’s chief marketing officer. 

Crocs said this week that it has appointed Susan Healy to the role of chief financial officer, taking over from Anne Mehlman. Melhman is now Crocs’ brand president, a role she inherited in February when Michelle Poole retired. 

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