Crocs reports Q1 sales uptick on namesake brand revenues, appoints new CFO

Crocs Inc. announced on Tuesday first revenues totalled $939 million, an increase of 6.2%, with Crocs brand revenues offsetting a double-digit decline in HeyDude sales.

The Colorado-based firm said Crocs revenues increased 14.6% to $744 million, with DTC revenues increasing 18.3% to $282 million, while wholesale revenues lifting 12.5% to $462 million. North America revenues increased 9% to $383 million, and international revenues surged 21.3% to $361 million.

That offset HeyDude brand revenues, which decreased 17.2% to $195 million, with DTC revenues decreasing 11% to $60 million, and wholesale revenues dropping 19.7% to $135 million.

During the three months, income from operations of $226 million decreased 3.6% from $235 million, resulting in operating margin of 24.1%.

“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. 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,” said Andrew Rees, chief executive officer. 
“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.”

In a separate update, Crocs announced the appointment of Susan Healy as executive vice president and chief financial officer of Crocs Inc., effective June 3.

Healy succeeds Anne Mehlman, who was recently appointed president of the Crocs brand. Mehlman will continue to serve as chief financial officer until Healy’s start date. Healy will join the executive leadership team and report directly to Andrew Rees, chief executive officer.

With over three decades of financial and operational leadership experience, Healy joins Crocs, Inc. from IAA, Inc., where she served as chief financial officer and led the company through its $7 billion merger with Ritchie Bros. Auctioneers Incorporated. 

Prior to 2021, Healy served as senior vice president of finance for Ulta Beauty. Earlier in her career, she held various senior financial leadership roles in addition to a 12-year tenure at Goldman Sachs.