Crocs is in the business of collaborations. It’s a skill many can learn from, as the footwear company reported $1.07 billion in revenue on Thursday (July 27).
The skill has been noted by PYMNTS in the past, as it serves as a valuable lesson for others who have attempted collaborations but faced challenges and failures.
“Both the Crocs and Hey Dude brands continue to gain share and bring in new consumers with our comfortable offerings,” Crocs CEO Andrew Rees said in a statement. “We continue to invest behind our strategic priorities that are driving profitable growth.”
The new number has not only exceeded expectations for the second quarter but also prompted the comfort footwear company to raise its full-year outlook.
Contributing to its success is its recently intensified category expansion strategy, in which the company introduced the new Mellow collection, expanding its sandal offering, and invested in the streetwear market with its Echo collection. But it’s also in large part to its skill to collaborate.
This week, the brand teamed up with MSCHF to launch a viral knee-high yellow boot, which gained attention through a campaign featuring Paris Hilton. Additionally, its collaboration with Barbie has also generated buzz.
Read also: Seeing Pink: Barbie Collabs Run Rampant as Movie Debuts
Through its Barbie collaboration, the footwear company looked to present a collection that includes five sandals and clogs, available in pink, white and black, along with eight exclusive “Barbie the Movie” Jibbitz charms.
The centerpiece of the collection is the Barbie Mega Crush Clog, featuring a platform silhouette adorned with a glitter treatment and Barbie logo print.
Before that, Crocs collaborated with high-end fashion brand Balenciaga and musicians such as Post Malone, Justin Bieber and Bad Bunny. It then also looked to extend its partnership with designer Salehe Bembury.
As part of the deal, Bembury now serves as the creative director for the Crocs x Pollex Pod collection and works with Crocs’ design team to enhance his already successful Pollex design, while also introducing fresh silhouettes and styles to the collection over the coming years.
Read also: Why Collaboration Works for Crocs and Not Adidas
Crocs saw a 14.9% rise to $833 million on a constant currency basis, while North America sales rose 12.5% to $474.6 million. Hey Dude revenues increased 3%, to $239.4 million; however, wholesale revenues fell 8.4%, to $148.8 million.
Crocs revised its outlook for full-year growth of the Hey Dude brand and now projects revenues to increase between 14% and 18% in 2023, down from its previous forecast of mid-20% growth. However, the company upgraded its expectations for Crocs brand growth, from 7% to 9% to 12% to 13% for the full year.
Crocs has increased its full-year guidance. The company now anticipates revenue growth between 12.5% and 14.5% compared to 2022, with sales ranging from $4 billion to $4.065 billion. This is an upward revision from its earlier guidance of between $3.95 billion to $4.05 billion.
For the third quarter, Crocs anticipates revenues to increase by 3% to 5% year over year, with sales expected to range between $1.013 billion and $1.034 billion. The company also projects adjusted diluted earnings per share to fall within the range of $3.07 to $3.15.
Looking ahead to the long-term, Crocs has set its sights on reaching $5 billion in Crocs brand revenue by 2026. In the last quarter, the company revealed a pipeline of over 60 brand partnerships scheduled for 2023, with 25% of them being regionally led. In support of this growth strategy, Crocs has allocated $200 million for marketing initiatives aimed at enhancing engagement and acquiring new customers.
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