• Q2 net profit down 42% to US$35.4m
  • Revenues up 9.9% to $363.8m
  • Profit hit by higher tax and narrower margins

Footwear business Crocs posted a near double-digit increase in revenue during its second quarter, but saw profits fall as margins shrank and taxes rose.

The US company’s reduced earnings in the three months to 30 June were accentuated by nearly US$8m in special items, thanks to the resolution of a tax audit in Brazil and a higher tax rate.

Gross margin fell to 55.2% from 59.3% a year ago, affected by increased discounting late in the quarter in the Americas and Europe.

John McCarvel, Crocs president and CEO, highlighted the success of the company’s spring/summer collections, including Huarache, A-Leigh, Beach Line Boat and Retro.

He added: “Globally, our direct-to-consumer channel continues to be a key component of our success.

“Our Asia-Pacific region remains a fundamental driver of our growth strategy as all channels in the region continue to exceed expectations.

“Challenges during the quarter included continued weakness in consumer spending in the US, Europe and Japan, compounded by colder than normal temperatures during April and May in the US and Europe.”