Crocs raises outlook as revenues soar

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Footwear retailer Crocs has raised its full-year outlook and credited a hike in revenues to the “strength” of its brands including Hey Dude, which it acquired last year.

Crocs has posted a 33.9% increase in revenue year-on-year to $884.2m (£710.3m) for the three months to March 31, 2023.

Crocs brand revenues were up 19% year-on-year to $648.8m (£521.1m), while sales of its Hey Dude brand increased by 104.8% to $235.4m (£189m).

Gross profit for the footwear retailer came in at $476.37m (£382.5m), up from $324.9m (£260.9m) for the same period last year.

Crocs said it has seen a “strong consumer response” to its product ranges including the introduction of new clogs and sandals.

In terms of full-year outlook, the business said it anticipates revenue growth to reach between 11% and 14% compared to last year.

The retailer also confirmed plans to expand its “distribution capabilites” as well as implement new technology systems with the opening of its Hey Dude distribution centre in Las Vegas later this year.

Crocs chief executive Andrew Rees said: “Our exceptional first-quarter results are a testament to the strength of our brands. The Crocs brand grew 19.0% as we see a strong consumer response to our new clog and sandal introductions.

“We are raising our 2023 revenue growth outlook to now be 11% to 14%, resulting in revenues of approximately $4bn, reflecting our confidence in our ability to continue to gain market share, deliver best-in-class profitability and generate strong cash flow.”