Dive Brief:
- Crocs' HeyDude brand will transition to a new ERP system toward the end of the year, according to CEO Andrew Rees, speaking last week during the company’s Q2 2023 earnings call for the period ending June 30.
- Crocs completed its acquisition of the Italian shoe brand in February 2022 for $2.05 billion in cash. In July 2022, Crocs said it expected Heydude to become a $1 billion brand by 2024.
- “We anticipate constrained distribution capabilities, particularly related to … the back half of the year due to ERP and warehouse transitions,” Rees said during the call, according to a SeekingAlpha transcript. “Even with this lowered near-term revenue outlook, the HeyDude brand is acquiring new customers and is gaining penetration in strategic accounts and on the coasts.”
Dive Insight:
Last year, HeyDude revamped its brand identity in an effort to reach more customers after Crocs held a dozen focus groups in the U.S.
“While our wholesale partners are very pleased with the performance of HeyDude … many are cautious in terms of future bookings based on their overall market outlook and lack of historical data on HeyDude's performance,” Rees said during last week’s earnings call.
The company expects the combined impacts of the ERP implementation and a new warehouse to alleviate expenses and improve flexibility.
HeyDude joins a growing group of companies working on ERP overhauls this year. Sweetgreen expects amortization costs amounting to $4.6 million as the company ramps up its cloud computing capabilities for its new ERP system. The company plans to amortize the costs over a seven-year period after its go-live date, according to last week’s earnings call report.
Ford launched the rest of its global integrated ERP system in North America in May to replace a number of existing core financial systems, a multiyear project that began in 2021.
Verizon is also making headway on a multiyear global ERP system implementation, designed to enhance the flow of financial information, facilitate data analysis and accelerate information reporting. The project started in Q3 2020 and will continue to roll out in phases over the next several years, according to last week’s earnings call for the period ending June 30.
