Footwear brand Crocs saw higher revenue and net income in the third quarter on the back of an increase in Crocs brand sales worldwide.
Sales of the Crocs brand alone jumped 11.6 per cent to $1.24 billion with the highest sales growth seen in the Asia-Pacific region, where it leapt 26.5 per cent to $272.4 million.
The company’s overall revenue – including sales of its struggling Heydude brand which fell 8.3 per cent to $383.89 million – rose 6.2 per cent year on year to reach $1.617 billion in the three months ended September 30.
Crocs brand sales increased 8 per cent to $747.3 million in North America and 8.3 per cent to $222 million in Europe, the Middle East, Africa, and Latin America.
“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 $1.4 billion and $1.46 billion.
For the full year, Crocs forecasts revenue of $6.08 billion to $6.13 billion, up by between 10 per cent and 11 per cent.
The company estimated capital expenditures of $194 to $210 million, primarily due to the expansion in distribution including the new Heydude distribution centre in Las Vegas.
