Crocs kicks up strong Q1 results but pulls guidance as trade fears loom
The funky footwear brand is winning over new fans even amid global uncertainty.
Crocs shares jumped double digits after the quirky shoe brand posted a strong first-quarter beat.
Diluted earnings per share came in at $2.83, easily topping FactSet estimates of $2.48. Revenue climbed to $937 million, ahead of the company’s own forecast and well above Wall Street’s $908 million target.
The company’s HEYDUDE brand also crushed expectations, bringing in $175.7 million, beating both the company’s forecast and Wall Street’s $166.3 million estimate.
Crocs highlighted several high-profile collabs that helped drive engagement during the quarter, including a buzzy drop with Tokyo streetwear brand BAPE, which sparked huge waitlists, app and web traffic spikes, and nearly 70% new customer acquisition.
Still, the road ahead may be less comfy. Crocs withdrew its full-year guidance, citing a murky global trade environment and rising consumer uncertainty, making it difficult to forecast demand.
“It is possible that in the future, we could see softer demand for footwear and other consumer goods,” CEO Andrew Rees said in the company’s earnings call, “particularly given the potential for increased costs and higher prices across the industry that could further burden an already choiceful consumer.”
After the post-earnings pop, Crocs shares are now up about 2% on the year.
