“We are incredibly proud of our better-than-expected first quarter performance despite what has been an increasingly volatile macroeconomic backdrop since the onset of the year. Both our Crocs and Heydude brands contributed to the outperformance with gross margins, operating margins, adjusted earnings per share, and cash flow coming in above plan. Our financial strength enabled us to return shareholder value through 61 million US dollars in share repurchases, while remaining well within our net leverage target range”, commented Andrew Rees, Chief Executive Officer.

First Quarter Results

In the first quarter of fiscal 2025, the company’s revenue amounted to 937 million US dollars, approximately flat or up by 1.4% on a constant currency basis, as compared to the same period of last year.

The Crocs brand contributed 762 million US dollars to the company’s total revenue, an increase of 2.4%, or 4.2% on a constant currency basis, on a comparable basis to the first quarter of 2024. While revenue in the North America region decreased by 3.8%, or 3.4% on a constant currency basis, to 369 million euros, the international revenue increased by 8.9%, or 12.3% on a constant currency basis, to 393 million US dollars.

The Heydude brand contributed 176 million US dollars to the company’s total revenue, a decrease of 9.8%, or 9.5% on a constant currency basis, as compared to the first quarter of 2024.

In the first quarter of the current fiscal year, Crocs’ gross margin grew to 57.8% from 55.6% in a similar period of the prior year, and the adjusted gross margin grew to 57.8% from 56.0%.

The company’s first quarter income from operations decreased by 1.5% year-over-year to 223 million US dollars, resulting in an operating margin of 23.8% as compared to 24.1%. Adjusted income from operations decreased by 12.5% year-over-year to 223 million US dollars, resulting in an adjusted operating margin of 23.8% as compared to 27.1%.

In the first quarter of 2025, Crocs reported diluted earnings per share of 2.83 US dollars, as compared to 2.50 US dollars in the same year-ago period, and adjusted diluted earnings per share remained approximately flat at 3.00 US dollars.

Full Year Outlook

The US footwear company has withdrawn its full year outlook due to the current volatile macroeconomic environment.

“While we are pleased by the performance of our overall business in April, the new global trade environment as well as business and consumer uncertainty, has made it challenging to predict how consumers may respond in the future. Amid this heightened operating backdrop, we are withdrawing our guidance for 2025”, explained Rees.