Crocs, Inc. (NASDAQ:CROX) Q2 2024 Earnings Conference Call August 1, 2024 8:30 AM ET

Company Participants

Erinn Murphy - Senior Vice President of Investor Relations and Corporate Strategy
Andrew Rees - Chief Executive Officer
Susan Healy - Chief Financial Officer

Conference Call Participants

Jonathan Komp - Robert W. Baird
Adrienne Yih - Barclays
Jim Duffy - Stifel Nicolaus
Rick Patel - Raymond James
Chris Nardone - Bank of America
Tom Nikic - Wedbush
Sam Poser - Williams Trading
Laura Champine - Loop Capital Markets
Ashley Owens - KeyBanc Capital Markets
Mitch Kummetz - Seaport
Jay Sole - UBS

Operator

Good day, and welcome to the Crocs' Second Quarter 2024 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] And please note this event is being recorded.

I would now like to turn the conference over to Erinn Murphy, Senior Vice President of Investor Relations and Corporate Strategy of Crocs. Please go ahead.

Erinn Murphy

Good morning and thank you for joining us to discuss Crocs, Inc. second quarter results. With me today are Andrew Rees, Chief Executive Officer; and Susan Healy, Chief Financial Officer. Following their prepared remarks, we will open the call for your questions, which we ask that you limit to one per caller.

Before we begin, I would like to remind you that some of the information provided on this call is forward-looking, and accordingly is subject to the Safe Harbor provisions of the federal securities laws. These statements include, but are not limited to statements regarding our strategy, plans, objectives, expectations, and intentions, including our financial outlook. These statements involve known and unknown risks, uncertainties, and other factors, which may cause our actual results, performance, or achievements to differ materially. Please refer to our quarterly report on Form 10-Q and other reports filed with the SEC for more information on these risks and uncertainties.

Certain financial metrics that we refer to as adjusted or non-GAAP are non-GAAP measures. A reconciliation of these amounts to their GAAP counterparts is contained in the press release we issued earlier this morning. All revenue growth rates will be cited on a constant currency basis unless otherwise stated.

At this time, I'll turn the call over to Andrew Rees, Crocs, Inc. Chief Executive Officer.

Andrew Rees

Thank you, Erinn, and good morning everyone. Thank you for joining us today. Before we discuss the quarter, I'd like to start by welcoming Susan Healy to her first Crocs, Inc. earnings call. We reported second quarter revenue of more than $1.1 billion which represents the highest quarterly achievement in the company's history, and exceeded our guidance. Coupled with robust adjusted gross margin expansion of 330 basis points, adjusted earnings per share grew by 12% to $4.01 even as we accelerated strategic investments. This performance resulted in record free cash flow for Crocs, Inc., which we utilized to pay down $200 million in debt and repurchase $175 million of our common stock.