- Wednesday, October 16, 2024
Crocs, the footwear maker based in Colorado, announced impressive financial results for the year and offered a positive outlook for 2024. The company reported a record profit of $792.6 million on revenue of $3.96 billion in 2023.
In the fourth quarter, Crocs achieved an adjusted profit of $2.58 per share, surpassing analyst expectations. The revenue for the quarter reached $960 million, slightly higher than projected.
The success of Crocs can be attributed to the strong demand for its primary shoe line, which is sold globally through wholesale and direct-to-consumer channels. However, the company faced challenges with its recently acquired brand, HeyDude, as its revenue declined during the fourth quarter.
Looking ahead, Crocs predicts that HeyDude revenue could decrease by up to 23% in the first quarter of 2024. In contrast, Crocs Brand revenue is expected to increase by 6% to 8%. Overall revenue is projected to decline by 1.5% to increase by 0.5% compared to the previous year. Analysts had predicted a decline of 0.6%.
For the first quarter, Crocs estimates an adjusted profit per share between $2.15 and $2.25, slightly lower than analyst expectations.
In terms of future forecasts, Crocs anticipates an adjusted earnings per share of $12.05 to $12.50 in 2024, surpassing analysts’ predictions of $11.81. The company also expects a 4% to 6% rise in Crocs brand revenue, while revenue for HeyDude is predicted to remain steady or experience slight growth.
Following these positive announcements, Crocs' stock rose by 6.1% in premarket trading.
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