Thu, May 8, 6:52 PM (15 days ago)
**Crocs, Inc. (CROX) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $937.3 million, a slight decrease of 0.1% YoY. - **Gross Profit:** $541.5 million, up 3.7% YoY. - **Operating Income:** $223.0 million, down 1.5% YoY. - **Net Income:** $160.1 million, up 5.0% YoY. - **EPS (Diluted):** $2.83, up 13.2% YoY. **Profit Margins:** - **Gross Margin:** 57.8%, up 220 basis points YoY. - **Operating Margin:** 23.8%, down 30 basis points YoY. **Cash Flow:** - **Operating Cash Flow:** Negative $67.2 million, a decrease of $39.7 million YoY. - **Investing Cash Flow:** Negative $15.4 million, a slight decrease of $0.4 million YoY. - **Financing Cash Flow:** Positive $65.8 million, an increase of $11.0 million YoY. **Earnings Changes:** - **Revenue Decrease:** Due to lower ASP in the Crocs Brand and unfavorable foreign currency fluctuations. - **Gross Margin Increase:** Driven by lower product costs and favorable customer mix. - **Operating Income Decrease:** Due to increased SG&A expenses, particularly in the DTC channel. **Quarterly Performance Discussion:** - **Crocs Brand:** Revenue increased by 2.4% YoY, driven by higher volume but offset by lower ASP. - **HEYDUDE Brand:** Revenue decreased by 9.8% YoY due to lower volume. - **SG&A Expenses:** Increased by 7.8% YoY, primarily due to higher costs in the DTC channel. **Trends and Uncertainties:** - **Economic Environment:** Consumers facing elevated interest rates and inflation, leading to unpredictable spending. - **Tariffs:** New tariffs imposed by the U.S. on foreign imports, with potential impacts on product costs and pricing. - **Liquidity:** Strong liquidity position with $166.5 million in cash and $694.4 million in available borrowing capacity. **Future Operations Impact:** - **Investments:** Continued investment in talent, marketing, digital, and retail to drive strategic pillars. - **Store Locations:** Expansion of company-operated retail locations for both Crocs and HEYDUDE brands. - **Legal Proceedings:** Ongoing legal proceedings related to wholesaler inventory and potential impacts on financial condition. **Key Metrics:** - **Gross Margin:** 57.8%, up 220 basis points YoY. - **Operating Margin:** 23.8%, down 30 basis points YoY. - **EPS (Diluted):** $2.83, up 13.2% YoY. **Conclusion:** Crocs, Inc. reported a slight decrease in revenue but an increase in net income for Q1 2025. The company faces challenges from economic uncertainties and new tariffs but maintains a strong liquidity position. Continued investments in strategic areas and expansion of retail locations are expected to drive future growth.