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Crocs
🇺🇸 NASDAQ:CROX
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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%.

Total Revenue
$1.05B
Previous year: $985M
+6.2%
EPS
$3.25
Previous year: $2.97
+9.4%
Gross Profit
$582M
Previous year: $541M
+7.5%
Cash and Equivalents
$127M
Previous year: $143M
-11.0%
Free Cash Flow
$270M
Previous year: $129M
+108.9%
Total Assets
$4.58B
Previous year: $4.54B
+0.8%

Crocs

Crocs

Crocs Revenue by Segment

Crocs 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.
  • Revenues for the HEYDUDE Brand to now grow approximately 4% to 6% on a reported basis for full year 2023, implying a decline of approximately 4% to 6% including the period prior to the HEYDUDE acquisition.
  • Combined GAAP tax rate to be approximately 23% and non-GAAP effective tax rate of approximately 20% for full year 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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