Crocs reported a struggle in its HEYDUDE segment in Q1 while impairments linked to a string of divestments in 2023 hit Wolverine Worldwide’s Q1 bottom line. Delta Apparel struggled with a product curtailment which saw its Q2 losses widen.
Crocs Inc Q1 profit dips on HEYDUDE challenges
First quarter revenues increased to $938.6m from $884.2m a year earlier. Operating income fell to 226.4m from $234.9m a year earlier on the back of increased cost of goods and higher expenses in the comparative period. Net income increased to $152.5m from $149.5m.
Go deeper with GlobalData
“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,” said CEO Andrew Rees. “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.”
Rees continued: “As we continue to prioritise 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.”
Wolverine Worldwide swings to loss in Q1
Total revenue in the quarter ending 30 March 2024 fell to $394.9m from $599.4m.
The company reported an operating loss of $3.1m compared with an operating profit of $45.3m a year earlier. Net losses were $13.7m from an $18m profit a year earlier.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe company reported lower gross profit and booked an impairment charge compared with the same period a year earlier. During 2023, Wolverine Worldwide divested the US Wolverine Leathers business, the non-US Wolverine Leathers business and the Sperry brand.
“We delivered better-than-expected revenue and earnings in the first quarter, and we are beginning to see proof points emerge as early validation of our strategy and execution – including record gross margin in the quarter, acceleration in our direct-to-consumer business, improving order trends across our wholesale operations, and a healthier balance sheet,” said Chris Hufnagel, president and CEO of Wolverine Worldwide.
“We’re executing our turnaround and transformation with pace and continue to make meaningful progress towards realising the full potential of our brands, platforms, and teams. While we have more work to do, I’m encouraged by the great work of our teams and the power of our brand-building model – focused squarely on creating awesome products, telling amazing stories, and driving the business each and every day.”
Q2 losses widen, sales sink at Delta Apparel
Delta Apparel booked net sales of $78.9m compared to the prior year period net sales of $110.3m with sales falling in both the Salt Life Group and the Delta Group segments for the second quarter ending 30 March. Gross margins were 4.3% compared to 14.7% in the prior year period, driven primarily by production curtailments in the Delta Group segment.
Operating loss increased from $5.3m in the prior year period to $24.4m.
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) was a loss of $20.9m. Net loss increased to $36.3m from a net loss of $7m.
