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Key Takeaways
- Crocs raised its full-year guidance but issued a third-quarter earnings projection below analysts’ expectations.
- The footwear company posted record revenue and earnings in the second quarter.
- Part of the problem: A weak sales outlook for its Heydude brand, where it expects to pick up its marketing work in the second half.
Crocs (CROX) delivered record revenue and earnings with its second-quarter results, but an underwhelming profit projection put a damper on the footwear company’s momentum.
The company expects diluted earnings per share (EPS) of $2.95 to $3.10 in the current quarter, below the analyst consensus of $3.28, according to Visible Alpha. For the full year, Crocs projects $12.45 to $12.90 per share, up from prior guidance of $12.25 to $12.73.
Crocs posted second-quarter revenue of $1.11 billion, up 4% year-over-year and just above expectations of $1.1 billion. Diluted EPS rose 11% to $3.77, above expectations of $3.50.Â
Crocs expects its namesake brand to keep growing sales, but its Heydude brand — responsible for nearly $200 million of second-quarter revenue — is expected to see sales fall as much as 10% for the full year. Executives said they would be “acclerating” Heydude marketing in the second half.
Shares of Crocs were recently down more than 3%. They’re still up 40% this year, but well off June highs.