US shoe brand reports record quarter
The American shoe manufacturer Crocs reported a six percent year-on-year increase in sales for the first quarter to a record $939 million. The good result was driven by the Crocs brand, whose sales rose 14,6 percent to $744 million in the quarter. The Hey Dude brand performed worse, with sales declining by 17,2 percent to $195 million. Sales fell by 19,7 percent in wholesale and by 11 percent in direct sales. “We are confident in the long-term opportunities for the Hey Dude brand,” said Andrew Rees, CEO of Crocs Inc., despite the current developments.
Crocs unveiled a retail strategy for Hey Dude in November that builds on its current strategy for the Crocs brand and includes strengthening strategic wholesale partnerships in the family channel, sporting goods, mall specialty stores and larger regional chains. But this also means giving up partnerships with smaller and less important wholesale partners. The brand recently strengthened its leadership team with the addition of Terence Reilly as President of Hey Dude.
Andrew Rees Rees attributed the Crocs brand's strong quarterly performance to "robust consumer demand in both North America and international markets." Crocs sales rose 9 percent to $383 million in North America and 21,3 percent to $361 million internationally.
There was also a recent leadership change at Crocs. Brand president Michelle Poole officially resigned last week and was replaced by the company's chief financial officer, Anne Mehlman. On Tuesday, the company named Susan Healy as its new CFO.
