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Dec 31, 2023
Crocs Q4 2023 Earnings Report
Crocs Inc. reported record fourth quarter and full year 2023 revenue and EPS.
Key Takeaways
Crocs, Inc. announced a record year, with revenues of nearly $4 billion, an 11% increase. The fourth quarter exceeded expectations across all metrics, with Crocs Brand growing across all regions and channels. The company made progress in returning the HEYDUDE Brand to a pull-market position, resulting in improved gross margins and healthy inventory levels.
Revenues were $960 million, an increase of 1.6% from the same period last year, or 1.5% on a constant currency basis.
Diluted earnings per share were $4.16 as compared to $2.20 for the same period last year due to an increased tax benefit.
Adjusted diluted earnings per share decreased 2.6% to $2.58 compared to $2.65 for the same period last year.
During the quarter $277 million of debt was repaid, and we reduced gross leverage to 1.5x and net leverage to 1.3x.
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
The company expects revenue growth of 3% to 5% compared to 2023. Adjusted diluted earnings per share of $12.05 to $12.50.
Positive Outlook
- Revenue growth of 3% to 5% compared to 2023
- Revenues for the Crocs Brand to grow 4% to 6%
- Revenues for the HEYDUDE Brand flat to slightly up
- Adjusted operating margin of approximately 25%
- Adjusted diluted earnings per share of $12.05 to $12.50
Challenges Ahead
- Revenues to be down 1.5% to up 0.5% compared to first quarter 2023
- HEYDUDE Brand to contract 23% to 20% compared to first quarter 2023
- Adjusted operating margin of approximately 22% for Q1 2024
- Adjusted diluted earnings per share of $2.15 to $2.25 for Q1 2024
- Combined GAAP tax rate of approximately 21.5% and Non-GAAP effective tax rate of approximately 18%