This decision comes despite the company reporting “better-than-expected” first quarter (Q1) performance for fiscal year 2025 (FY25), driven by outperformance in both Crocs and HEYDUDE brand.
Crocs saw a flat consolidated revenue or a slight uptick of 1.4% on a constant currency basis, amounting to $937.33m compared to $938.63m in the corresponding period last year.
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On 13 February 2025, the footwear manufacturer predicted a revenue increase of 2% to 2.5% for fiscal 2025.
Crocs chief executive officer Andrew Rees stated: “While we are pleased by the performance of our overall business in April, the new global trade environment as well as business and consumer uncertainty, has made it challenging to predict how consumers may respond in the future. Amid this heightened operating backdrop, we are withdrawing our guidance for 2025. We are committed to remaining transparent to our investment community, our consumers, and our customers as we work to chart a winning course.”
Crocs overall performance in Q1 FY25
The Crocs brand experienced a revenue increase of 2.4%, reaching $762m or 4.2% on a constant currency basis, while HEYDUDE brand revenues saw a decline of 9.8% to $176m or 9.5% on a constant currency basis.
The company’s direct-to-consumer (DTC) revenues rose by 2.3%, while wholesale revenues saw a decrease of 1.6%.
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By GlobalDataGross profit of Crocs improved to $541.55m in Q1 FY25 from $522.08m in the previous year’s quarter, with gross margin reaching 57.8% compared to 55.6%.
Selling, general, and administrative expenses (SG&A) climbed by 7.8% to $318.58m from $295.65m and accounted for 34.0% of revenues compared to the prior rate of 31.5%.
Income from operations fell slightly by 1.5% to $222.97m from $226.43m, leading to an operating margin of 23.8% versus the earlier figure of 24.1%.
Crocs net income for Q1 FY25 increased to $160.10m from $152.45m in Q1 FY24, which translate to diluted earnings per share of $2.83, increasing by 13.2% from $2.50 in the prior year quarter.
During this quarter, Crocs borrowed $130m and repurchased roughly 0.6m shares for $61m at an average price of $100.23 per share. By quarter’s end, approximately $1.3bn remained available for future share repurchases.
“We are incredibly proud of our better-than-expected first quarter performance despite what has been an increasingly volatile macroeconomic backdrop since the onset of the year. Both our Crocs and HEYDUDE brands contributed to the outperformance with gross margins, operating margins, adjusted earnings per share, and cash flow coming in above plan. Our financial strength enabled us to return shareholder value through $61m in share repurchases, while remaining well within our net leverage target range,” Rees said.
