Crocs posts record sales but Heydude continues to struggle

BROOMFIELD — Iconic casual footwear brand Crocs Inc. (Nasdaq: CROX) just recorded its best second quarter sale period ever, but saw its stock slide a bit in early trading Thursday as its Heydude brand continues its sluggish performance. 

The company posted consolidated revenues of more than $1.1 billion in the second quarter of 2024, up 3.6% from the same period last year. 

Income from operations were up 2.3% year over year to $326 million in the most recent quarter. 

 “We reported record second quarter results on both the top and bottom line which exceeded our guidance on all Enterprise metrics,” Crocs CEO Andrew Rees said in a prepared statement. “Strength in the quarter was led by our Crocs Brand with exceptional growth internationally. As it relates to Heydude, we are making improvements to support long-term brand health and are focused on driving brand heat by accelerating marketing in the second half of the year.”

Heydude sales dropped 17.5% year over year to $198 million in the second quarter of 2024.

For the full 2024 fiscal year, Crocs is projecting revenue growth of 3% to 5% compared to 2023.

“Based on the strength of our second quarter, we are lifting our operating margin and earnings per share outlook for the fiscal year while maintaining our revenue guidance,” Rees’ statement said. “Our terrific cash flow generation provides us the flexibility to reinvest in our business, pay down debt and repurchase shares.”

Still, the company expects Heydude sales to be 8% to 10% lower than they were in 2023.

Crocs acquired Heydude for $2.5 billion in 2021, the Broomfield clog giant’s largest acquisition to date. In the years since the deal, Heydude revenues have consistently lagged sales of Crocs’ core clog line.