Crocs Inc. has reported impressive third-quarter financial results, with revenues reaching $1.05 billion, marking a 6.2% increase. The growth can be attributed to the strong performance of the Crocs brand in the Asia Pacific region, as well as double-digit growth across the entire brand. Specifically, Crocs brand revenues saw a significant increase of 11.6% to $798.8 million. The company’s direct-to-consumer (DTC) comparable sales also experienced a surge of 15.3%, while wholesale revenues increased by 4.5%.

Breaking it down by region, North America saw revenues rise by 8% to $480.7 million. However, the standout growth came from the Asia Pacific region, with revenues reaching $175.2 million, marking a remarkable increase of 26.5%. Similarly, Europe, the Middle East, Africa, and Latin America witnessed an increase of 8.3%, with revenues reaching $142.8 million.

In contrast, HeyDude brand revenues experienced a decline of 8.3% to $246.9 million. However, there was positive news as DTC revenues for HeyDude increased by 14.6% to $100.4 million. Unfortunately, this growth was offset by a decline in wholesale revenues, with a significant drop of 19.4% to $146.5 million.

Andrew Rees, the Chief Executive Officer of Crocs, expressed satisfaction with the strong performance of the Crocs brand and highlighted the market share gains for both Crocs and HeyDude brands during the back-to-school season. Rees also commended the company’s ability to deliver healthy full-price selling, resulting in leading operating margins.

However, there were challenges with the HeyDude brand that demanded immediate attention. In response, Crocs implemented a marketplace management strategy to ensure the brand’s long-term health. As a result, the company adjusted its full-year outlook to reflect this shift in strategy for the HeyDude brand.

Looking ahead, Crocs forecasts a growth of approximately 10% to 11% in consolidated revenue for the full year of 2023 compared to 2022. This projection corresponds to revenues of approximately $3.905 billion to $3.94 billion at currency rates as of the end of the last reported period.

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