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Sep 30, 2023
Crocs Q3 2023 Earnings Report
Crocs delivered a strong third quarter, exceeding guidance, with Crocs Brand leading the growth and HEYDUDE undergoing strategic adjustments.
Key Takeaways
Crocs, Inc. reported strong Q3 2023 results with revenues exceeding $1 billion, a 6% increase over the previous year. The Crocs Brand saw double-digit revenue growth, while the company took steps to manage the HEYDUDE marketplace strategy. Diluted EPS increased by 5.5% to $2.87, and adjusted diluted EPS rose by 9.4% to $3.25.
Consolidated revenues increased by 6.2% to $1,045.7 million.
Crocs Brand revenues grew by 11.6% to $798.8 million, driven by growth in Asia and North America.
HEYDUDE Brand revenues decreased by 8.3% to $246.9 million.
Operating margin was 26.2%, and adjusted operating margin was 28.3%.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For Q4 2023, Crocs expects revenues to decline approximately 1% to 4% compared to Q4 2022, resulting in revenues of approximately $903 million to $938 million. Adjusted operating margin is expected to be approximately 21.0%, and adjusted diluted earnings per share are projected to be between $2.05 and $2.35.
Positive Outlook
- Revenues for the Crocs Brand to grow approximately 12% to 13% on a reported basis for full year 2023.
- Adjusted diluted earnings per share to now be between $11.55 and $11.85 for full year 2023.
- Company expects revenues of approximately $3,905 to $3,940 million for full year 2023.
- Adjusted operating margin to now be approximately 27.0% for full year 2023.
- Capital expenditures to now be approximately $125 to $135 million for full year 2023.
Challenges Ahead
- Revenues to decline approximately 1% to 4% compared to fourth quarter 2022.
- Adjusted operating margin of approximately 21.0% for Q4 2023.
- Adjusted diluted earnings per share of $2.05 to $2.35 for Q4 2023.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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