Crocs Posts a Record Quarter, and HEYDUDE Finally Stops Being the Problem Child
The clog brand's Q3 revenue hit $1.04 billion, and for the first time in a while, its scuffling HEYDUDE sibling actually helped instead of hurt.
Crocs turned in what its own chief executive called a record quarter, with consolidated revenue climbing 4.6% to $1.04 billion and adjusted earnings per share up 26.4% to $3.69. The Crocs brand itself grew 4.4% to $873 million, powered by an 11.8% jump internationally and an 8.2% rise in direct-to-consumer sales, even as North American revenue slipped 2.1%.
The bigger story is HEYDUDE, the footwear brand Crocs bought in 2022 and has spent years trying to stop shrinking. HEYDUDE revenue grew 6.1% to $170 million in the quarter, its first quarter of growth in a while, with wholesale receipts up 14%. The turnaround was enough for Crocs to raise its full-year guidance across the board, including bumping its outlook for HEYDUDE from a projected 2% to 4% decline to roughly flat for the year.
"The Crocs brand delivered a record third quarter with revenues up 4%," said chief executive Andrew Rees, who called HEYDUDE's return to growth a "milestone" in the company's long-running effort to fix the brand. Wall Street seemed to agree the math finally works: Crocs now expects fourth-quarter revenue growth of 7% to 9%, with HEYDUDE leading the way at 10% to 12%.
Source: FashionUnited
Kyle Duford, Founder & Editor, BRNDWIRE. More from Kyle →
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