Crocs(CROX) - 2024 Q1 - Quarterly Results

Crocs Brand Performance - Crocs Brand revenues increased 14.6% to $744 million, or 15.6% on a constant currency basis[1] - DTC revenues for Crocs Brand increased 18.3% to$ 282 million, or 19.0% on a constant currency basis[1] - Wholesale revenues for Crocs Brand increased 12.5% to $462 million, or 13.8% on a constant currency basis[1] - International revenues for Crocs Brand increased 21.3% to$ 361 million, or 23.6% on a constant currency basis[1] - Direct-to-consumer comparable sales for the Crocs Brand grew 14.7% in Q1 2024 on a constant currency basis[80] - Crocs Brand GAAP gross margin was 58.1% in Q1 2024, up from 55.8% in Q1 2023[84] - Non-GAAP Crocs Brand gross margin reached 56.3% in Q1 2023, up from 55.8% on a GAAP basis[84] - Crocs Brand projected to grow 7% to 9% in Q2 2023, while HEYDUDE Brand expected to contract by 19% to 17%[44] HEYDUDE Brand Performance - HEYDUDE Brand revenues decreased 17.2% to $195 million[37] - The company expects to incur approximately$ 28 million in costs for HEYDUDE integration and distribution center transition in 2024[78] - Asset impairment costs in Q1 2024 amounted to $24.081 million, primarily related to the transition to the new HEYDUDE distribution center[51][59] Consolidated Financial Performance - Consolidated revenues increased 6.2% to$ 939 million, or 6.9% on a constant currency basis[27] - Revenues for Q1 2024 increased to $938.633 million, up from$ 884.166 million in Q1 2023[49] - GAAP revenues for Q1 2024 were $938.6 million, compared to$ 884.2 million in Q1 2023[62] - GAAP revenues for Q1 2024 were $938.633 million, compared to$ 884.166 million in Q1 2023[86] - Net income for Q1 2024 rose to $152.454 million, compared to$ 149.543 million in Q1 2023[49] - Total assets increased to $4.795 billion in Q1 2024 from$ 4.643 billion in Q1 2023[50] - Total current liabilities decreased to $628.561 million in Q1 2024 from$ 698.296 million in Q1 2023[50] - Cash, cash equivalents, and restricted cash increased to $163.022 million at the end of Q1 2024 from$ 128.929 million at the end of Q1 2023[51] - Cash flows from operating activities showed a net use of $27.574 million in Q1 2024, compared to a net provision of$ 9.931 million in Q1 2023[51] Earnings and Margins - Adjusted diluted earnings per share increased 15.7% to $3.02[27] - Adjusted operating margin for Q2 2024 expected to be approximately 26.5%[9] - Adjusted operating margin estimated at approximately 25%[45] - GAAP operating margin decreased to 24.1% in Q1 2024 from 26.6% in Q1 2023[62] - Non-GAAP operating margin was 27.1% in Q1 2024, down from 27.9% in Q1 2023[62] - GAAP gross margin improved to 55.6% in Q1 2024 from 53.9% in Q1 2023[84] - Non-GAAP gross margin increased to 56.0% in Q1 2024 from 54.2% in Q1 2023[84] - Non-GAAP income from operations for Q1 2024 was$ 254.8 million, up from $247.0 million in Q1 2023[62] Expenses - GAAP selling, general and administrative expenses for Q1 2024 were$ 295.648 million, up from $241.442 million in Q1 2023[86] - Non-GAAP selling, general and administrative expenses for Q1 2024 were$ 270.543 million, compared to $232.610 million in Q1 2023[86] - GAAP selling, general and administrative expenses as a percent of revenues increased to 31.5% in Q1 2024 from 27.3% in Q1 2023[86] - Non-GAAP selling, general and administrative expenses as a percent of revenues rose to 28.8% in Q1 2024 from 26.3% in Q1 2023[86] - Total adjustments to GAAP selling, general and administrative expenses were$ 25.105 million in Q1 2024, compared to $8.832 million in Q1 2023[86] Future Outlook - Full-year 2024 revenue growth expected to be 3% to 5% compared to 2023[10] - Capital expenditures for 2024 expected to be approximately$ 120 million to $130 million[39] Non-GAAP Measures - Non-GAAP measures are used to provide a clearer view of underlying business trends by excluding certain non-routine costs[53][54]