Crocs posts $4.1bn annual revenue and increases share repurchase authorization

Overview

Crocs achieved a record-breaking performance in 2024, with annual revenues reaching $4.1bn. The company also reported exceptional operating cash flow, enabling significant share repurchases and debt reduction.

CEO Andrew Rees highlighted the company’s robust growth, particularly within the Crocs brand, and noted the stabilization of HEYDUDE brand revenues: “Our fourth quarter performance exceeded expectations across all metrics led by Crocs Brand growth of 4%, as the North American business outperformed our plan and China growth accelerated from the third quarter. HEYDUDE revenue was flat to last year, higher than anticipated as direct-to-consumer sales inflected to growth. For 2025, we are expecting another year of revenue growth, led by mid-single digit growth in the Crocs Brand. We are pleased by the early signs of progress we made for HEYDUDE during the fourth quarter and are taking a prudent approach to how we shape 2025 guidance for HEYDUDE as we focus on reigniting the brand.”

Q4 2024 vs. Q4 2023:

• Consolidated revenues rose to $990m (+3.1% YoY), with direct-to-consumer (DTC) revenues growing by 5.5%.
  • Crocs Brand reported revenues of $762m (+4% vs. Q4 2023).
  
  
  • HEYDUDE Brand had revenues of $228m (flat YoY).
  
  
  • North America revenues were also flat at $471m.
  
  
  • International revenues increased to $291m (+11.5% vs. Q4 2023).
• Gross margin improved to 57.9%, up from 55.3% in the prior year.
• SG&A expenses increased to a value of $373m (+16.1% YoY), representing 37.7% of revenues.
• Income from operations was $200m (-4.6% YoY), resulting in operating margin of 20.2% (compared to 21.8% in Q4 2023).
• Diluted EPS rose to $6.36 (+53% YoY), while adjusted diluted EPS decreased slightly to $2.52 (-2% YoY), which excludes the current period tax impact of intra-entity transactions.

Full-Year 2024 performance:

• Total revenues recorded a value of $4.1bn (+3.5% YoY), with DTC revenues grew 7.2%.
  • Crocs Brand revenues increased to $3.27bn (+8.8% vs. 2023).
  
  
  • HEYDUDE Brand revenues decreased to $824m (-13.2% vs. 2023).
  
  
  • North America revenues increased to $1.83bn (+3.1% vs. 2023).
  
  
  • International revenues reached to $1.45bn (+17% vs. 2023).
• Gross margin was 58.8% (compared to 55.8% in 2023). Adjusted gross margin improved also to 58.8% (+230 basis points YoY).
• SG&A expenses recorded a high value of $1.39bn (+18.3% YoY), and represented 33.8% of revenues compared to 29.6% in 2023.
• Income from operations decreased very slightly to $1.02bn (-1% YoY), resulting in operating margin of 24.9% compared to 26.2% in 2023.
• Diluted EPS rose to $15.88 (+24.2% YoY), while adjusted diluted EPS recorded a value of $13.17 (+9.5% YoY).
• During the year, the company repurchased approximately 4.3m shares for $551m at an average share price of $127.94, and at year-end, $324m of share repurchase authorization remained available for future repurchases.

Crocs anticipates moderate revenue growth in 2025, supported by strength in the Crocs Brand, despite foreign currency headwinds and challenges in the HEYDUDE segment. Full-year revenue is expected to increase by approximately 2% to 2.5%, with the Crocs brand growing around 4.5%, while HEYDUDE sales may decline by 9% to 7%. The company projects an adjusted operating margin of 24.0%, factoring in currency and tariff impacts. Adjusted diluted EPS is forecasted between $12.70 and $13.15, with a GAAP tax rate of 21.5%. Capital expenditures are expected to range between $80m and $100m, reflecting continued investments in brand and operational efficiencies.

The main reported results, which are constantly expanding, brought very good feelings on Wall Street, so that the CROX share price ended last trading week with an appreciation of over +16%, although at the level of the last year, the company’s shares are still trading at a price that is decreasing by almost -9%.