Earnings for Brooks and Crocs
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Brooks and Crocs report earnings and the market reacts to the departure of Boot Barn's chief executive.
Here's what you need to know.
Brooks Reaches $1B Sales Milestone in First 9 Months of Year
Following a record Q2, Brooks Running continued its winning streak in its most recent quarter.
In the third quarter of 2024, the Seattle-based performance running brand reported that it surpassed $1 billion in global revenue year to date through September, marking the first time the company has hit the major milestone prior to the start of its fourth quarter.
According to Brooks, its Q3 success was driven by growth across all regions and channels, including a 10 percent year-over-year increase in North America, where its e-commerce channel grew 16 percent in the period.
Brooks also drove strong third-quarter results in other regions. The company said Tuesday that revenue grew more than 30 percent in Asia Pacific – Latin America (APLA), while in Europe, Middle East, and Africa (EMEA), Brooks’ momentum resulted in a 10 percent revenue increase fueled by 24 percent direct e-commerce sales growth.
Crocs’ Hey Dude Problem Persists in Q3 as Stock Takes Hit on Lower Guidance
Shares for Crocs Inc. took a hit on Wall Street on Tuesday, dropping nearly 19 percent in mid-day trading, following the continued sales decline at the company’s Hey Dude brand.
According to the Broomfield, Colo.-based footwear brand, consolidated revenues in the third quarter of fiscal 2024 were $1.06 billion, an increase of 1.6 percent over the same time last year.
Crocs brand revenues once again drove the strong results, with sales up 7.4 percent to $858 million in the third quarter. Revenues for the Hey Dude brand in Q3 decreased 17.4 percent to $204 million.
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On the company’s earnings call on Tuesday, Crocs Inc. chief executive officer Andrew Rees told analysts that while the company is encouraged by early positive indicators on Hey Dude’s turnaround, recent performance and the current operating environment are signaling it could take longer than the company initially planned for the business to turn the corner.
How Wall Street Is Reacting to Boot Barn CEO Departure
Shares for Boot Barn continue to take a hit on Wall Street Tuesday, one day after the Western footwear retailer announced the retirement of its longtime chief executive officer Jim Conroy.
Conroy, 54. has been at the helm of Boot Barn for 12 years. He is leaving the retailer to become CEO of Ross Stores, effective Feb. 2, 2025. He succeeds Barbara Rentler, who has served at CEO at the off-price retailer for the last 10 years. In his place, John Hazen, the company’s current chief digital officer, will assume the role of interim CEO, effective Nov. 22.
Even with strong second quarter results, Wall Street was not necesarily happy with Boot Barn’s leadership change. Some analysts on Tuesday did their best to calm the nerves of investors.
“The long-term story remains in place, even with the CEO’s departure,” Williams Trading analyst Sam Poster wrote in a note on Tuesday. “Second quarter 2025 same store sales, revenue, and gross margin exceeded expectations. Customer retention is increasing, and it’s likely that the new interim CEO will accelerate the improvement. Fiscal year 2025 guidance was increased, and Boot Barn remains the best growth story in retail.”
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