Crocs Reports Slight Revenue Decline but Increased Net Income in Q1 2025

Crocs, Inc. reported a slight decline in revenue for the first quarter of 2025, with total revenues reaching $937.3 million, a decrease of 0.1% compared to $938.6 million in the same period of 2024. The company's net income increased to $160.1 million, or $2.83 per diluted share, up from $152.5 million, or $2.50 per diluted share, in the prior year. The increase in net income was attributed to a combination of lower cost of sales and favorable foreign currency gains, which offset the slight revenue decline. The gross profit for the quarter was $541.5 million, resulting in a gross margin of 57.8%, an increase of 220 basis points from the previous year.

In terms of operational performance, the Crocs Brand saw a revenue increase of 2.4% year-over-year, driven by higher unit sales volume, while the HEYDUDE Brand experienced a revenue decline of 9.8%. The overall decrease in revenue was influenced by lower average selling prices in the Crocs Brand and unfavorable foreign currency fluctuations, particularly in the South Korean Won. Selling, general, and administrative expenses rose to $318.6 million, primarily due to increased costs in the direct-to-consumer channel and higher marketing expenses.

The company also reported significant changes in its balance sheet, with total assets increasing to $5.07 billion as of March 31, 2025, compared to $4.81 billion at the end of 2024. Cash and cash equivalents stood at $166.5 million, while total borrowings amounted to $1.5 billion. Crocs repurchased $60.9 million of its common stock during the quarter, reflecting its ongoing commitment to returning value to shareholders. The company has approximately $1.3 billion remaining under its stock repurchase authorization.

Looking ahead, Crocs anticipates continued challenges due to elevated interest rates and inflation affecting consumer spending. The company is focused on strategic investments in talent, marketing, and digital initiatives to enhance brand awareness and market share. Additionally, Crocs is monitoring potential impacts from recent tariff changes and exploring options to mitigate these effects. The company remains optimistic about its liquidity position, with $694.4 million in available borrowing capacity, which it believes will support its operational needs and growth initiatives in the coming months.