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 cult-like shoe brand’s revenue jumped 11.6 per cent to US$798.8 million globally with the highest sales growth seen in Asia Pacific, where it surged 26.5 per cent to $175.2 million.
Overall revenue – including the troubled Heydude brand whose sales fell 8.3 per cent to $246.9 million – rose 6.2 per cent year over year to $1.04 billion in the three months that ended September 30.
In North America, Crocs brand sales increased 8 per cent to $480.7 million and in Europe, the Middle East, Africa, and Latin America by 8.3 per cent to $142.8 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 facilities including a new Heydude DC in Las Vegas.
