Crocs Inc. now expects to post record 2023 revenues of approximately $3.95 billion, representing more than 11 percent growth year-over-year, compared with a previous guidance of a 10 to 11 percent increase.
“2023 was a strong year for Crocs, Inc. that culminated in a successful holiday season with market share gains for both brands,” said CEO Andrew Rees. ”Fourth-quarter revenue is now expected to exceed our former guidance, and we are raising our operating margin target for the year. Our strong free cashflow generation enabled us to pay down $277 million in net debt in the quarter, bringing our full-year debt pay down to $665 million.”
The US footwear company expects Q4 revenues to grow by over 1 percent year-on-year, above its prior guidance of a 1 to 4 percent decline, with the Crocs brand growing by almost 10 percent and the Heydude label down by 19 percent.
In the full year, the Crocs brand grew by over 13 percent, surpassing the $3 billion mark, and Heydude revenues were about $949 million. The company expects full-year adjusted operating margin to be more than 27 percent.
In 2024, Crocs anticipates revenue growth of 3 to 5 percent compared to 2023, comprised of a 4 to 6 percent increase for the Crocs brand and sales flat to slightly higher for Heydude.
“We expect gross margin improvement over 2023 and plan to reinvest these dollars into brand accretive and strategic SG&A investments, resulting in an adjusted operating margin of approximately 25 percent in 2024,” the company added.
