Crocs Shares Rise After Q3 Earnings Beat

Core Viewpoint - Crocs Inc. shares increased by 5.2% to $89.07 after surpassing Wall Street's third-quarter expectations, despite forecasting a revenue decline for the fourth quarter [1]. Financial Performance - For Q3, net income decreased by 27.0% to $145.8 million, or $2.70 per diluted share, compared to $199.8 million, or $3.36, in the same period last year [2]. - Adjusted diluted EPS for Q3 was reported at $2.92, exceeding Wall Street's expectations of $2.36 [3]. - Revenues fell by 6.2% to $996.3 million from $1.06 billion year-over-year [2]. Revenue Breakdown - Direct-to-consumer (DTC) revenue increased by 1.6%, while wholesale revenue declined by 14.7% [2]. - For the nine months, revenues decreased by 0.9% to $3.08 billion from $3.11 billion in the previous year [3]. - In Q3, DTC revenues rose by 2.0% to $472 million, while wholesale revenues fell by 7.9% to $364 million [6]. Future Guidance - The company projected adjusted fourth-quarter diluted EPS in the range of $1.82 to $1.92, better than the $1.75 consensus estimate [4]. - Revenue for the fourth quarter is expected to decline by 8% compared to the previous year, with Crocs brand revenues down 3% and Hey Dude brand revenues forecasted to drop mid-20% [4]. Strategic Actions - The CEO highlighted that the third-quarter performance was driven by disciplined execution and innovation, allowing the company to repurchase 2.4 million shares and pay down $63 million in debt [5]. - The company aims to regain momentum in the marketplace for both brands [6].