Crocs Q2 Earnings: Revenue And Profit Beat, Issues Mixed Q3 Outlook Amid HEYDUDE Struggles
Portfolio Pulse from Nabaparna Bhattacharya
Crocs, Inc. (NASDAQ:CROX) reported better-than-expected Q2 earnings and sales, but shares fell due to a revenue decline in its HEYDUDE brand and a cautious Q3 forecast. Adjusted EPS was $4.01, beating the $3.56 estimate, and sales were $1.112 billion, surpassing the $1.102 billion consensus. Crocs Brand revenues grew 9.7%, while HEYDUDE Brand revenues fell 17.5%. The company projects Q3 revenue to be down 1.5% to up 0.5% year-over-year, with adjusted EPS between $2.95 and $3.10, below the $3.33 estimate.
August 01, 2024 | 12:51 pm
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Crocs reported strong Q2 earnings and sales, but shares fell due to a revenue decline in its HEYDUDE brand and a cautious Q3 forecast. Adjusted EPS was $4.01, beating the $3.56 estimate, and sales were $1.112 billion, surpassing the $1.102 billion consensus. Crocs Brand revenues grew 9.7%, while HEYDUDE Brand revenues fell 17.5%. The company projects Q3 revenue to be down 1.5% to up 0.5% year-over-year, with adjusted EPS between $2.95 and $3.10, below the $3.33 estimate.
Despite beating Q2 earnings and sales estimates, Crocs shares fell due to a significant revenue decline in its HEYDUDE brand and a cautious Q3 forecast. The mixed outlook and underperformance of the HEYDUDE brand are likely to weigh on investor sentiment in the short term.
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