CROCS INC 2024 Q2
Earnings Overview & AI Insights

Earnings Performance

Andrew Rees, chief executive officer, Susan Healy, chief financial officer, will discuss Crocs' second-quarter results. Rees and Healy will discuss the company's quarterly results. At this time of the call, we ask that you limit to one per caller's questions. Crocs saw further growth in global brand awareness and desirability in the second quarter. The investments we are making in product and marketing are enabling us to win with consumers around the world. We continue to push into sneaker and lifestyle opportunities. The North America market performed ahead of expectations and gained market share with revenue growth of 3% versus the prior year. International revenue grew 22% versus prior year, supported by exceptional growth in China and Australia. For the first time ever, Crocsemerged as a top 10 overall fashion brand on Tmall during the Midsummer Festival. We expect that to continue through the second half of the year, but wholesale business for HEYDUDE remains challenging. From a product perspective, we're bringing more focus around our core, Wendy and Wally. We're leaning into three primary offerings, Stretch Subs, Stretch Canvas, and Funk.Mono. The company generated over $1.1 billion in second-quarter revenues in the quarter, growing 5% over last year. Susan Healy -- Executive Vice President, Chief Executive Officer -- will review our financial results for the quarter. For the Crocs brand, revenues were $914 million, growing 11% a prior year, driven by DTC growth of 14% and wholesale growth of 9%. North.American brick-and-mortar growth was up mid-single-digits. International revenue of $425 million was up 22% from the prior year. Global sales were $198 million, down 17.5% from last year. Second-quarter adjusted diluted earnings per share increased 12% to $4.01. Our non-GAAP effective tax rate was 17.8%. Our inventory balance was $377 million, a decline of $377m versus this time last year. We are reaffirming our full-year top-line revenue outlook of 3% to 5% growth. Crocs and HEYDUDE brand margins to be up for the year versus 2023. We remain focused on investing behind brandaccretive and strategic SG&A initiative. We are raising our 2024 adjusted diluted earnings per share per share to $12.73. Contribution from new retail stores, four, sell-in to new international distributors; and five, lapping last year's pricing reset on digital late in Q3. At this time, we'll open the call for questions.