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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%.
Crocs
Crocs
Crocs Revenue by Segment
Crocs Revenue by Geographic Location
Revenue by Segment
HEYDUDE Brand Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comInternational Revenue
CapyFin.com 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.