For the three months ended September 30, 2024, Crocs, Inc. reported total revenues of $1,062.2 million, reflecting a 1.6% increase from $1,045.7 million in the same period of 2023. The growth was primarily driven by a 3.2% increase in unit sales volume for the Crocs Brand, which contributed an additional $33.1 million, although this was partially offset by a decrease in average selling price (ASP) that reduced revenues by $12.9 million. Additionally, unfavorable exchange rate changes decreased revenues by $3.7 million.
Gross profit for the quarter rose to $633.3 million, an 8.9% increase from $581.6 million in Q3 2023, resulting in a gross margin of 59.6%, up 400 basis points year-over-year. However, income from operations decreased slightly to $269.8 million from $273.9 million in the prior year. Net income for the quarter was $199.8 million, or $3.36 per diluted share, compared to $177.0 million, or $2.87 per diluted share, in Q3 2023.
For the nine months ended September 30, 2024, total revenues reached $3,112.3 million, a 3.7% increase from $3,002.3 million in the same period of 2023. Net income for this period was $581.2 million, up from $539.0 million in the previous year. The effective tax rate for the nine months decreased to 21.0% from 23.3% in 2023, contributing to the improved net income.
The Crocs Brand specifically saw a revenue increase of 7.4% in Q3 2024, totaling $858.1 million, while HEYDUDE Brand revenues fell by 17.4% to $204.1 million, attributed to lower sales volume despite higher ASPs. SG&A expenses increased significantly, totaling $363.5 million in Q3 2024, up from $307.8 million in Q3 2023, primarily due to increased investments in talent and marketing.
As of September 30, 2024, Crocs had cash and cash equivalents of $186.1 million and total assets of $4.7 billion. The company reported total liabilities of $2.99 billion, down from $3.19 billion at the end of 2023. Long-term borrowings decreased to $1.42 billion from $1.64 billion, and the company maintained compliance with all financial covenants under its credit agreements.
Impairment charges related to the integration of HEYDUDE and former warehouse facilities totaled approximately $11.6 million for the nine months ended September 30, 2024. The company also repurchased $151.2 million of common stock during the quarter, with remaining authorization for an additional $548.9 million in stock repurchases.
About Crocs, Inc.
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