Crocs Q4 2024 revenues up 3.1% to $990m

Shares in Crocs Inc. rose over 24 percent on Feb. 13, after the company announced a potential turnaround at HeyDude and better than expected fourth-quarter results. The company also has an upbeat outlook.

Revenues for the final quarter of 2024 rose 3.1 percent to $990 million (3.8% on a constant currency basis) compared with last year. Direct-to-consumer (DTC) revenues grew 5.5 percent (+6.1 percent at constant currency) year-over-year. Wholesale revenues contracted 0.2 percent or grew 0.7 percent on a constant-currency basis.

Crocs Brand

Crocs Brand revenues increased 4.0 percent (+4.9 percent cc) to $762 million in the quarter. Crocs Brand DTC revenues increased 5.0 percent (+5.7 percent cc) to $447 million. Crocs Brand wholesale revenues increased 2.7 percent (+3.8 percent cc) to $315 million. Crocs Brand North America revenues were flat at $471 million for the quarter. Crocs Brand International revenues increased 11.5 percent (+13.7 percent cc) to $291 million.

HeyDude Brand

HeyDude Brand revenues were flat at $228 million in the fourth quarter. HeyDude DTC revenues increased 7.2 percent to $133 million. HeyDude wholesale revenues decreased 8.6 percent to $95 million.

“Our fourth quarter performance exceeded expectations across all metrics led by Crocs Brand growth of 4 percent, 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,” commented Crocs CEO Andrew Rees.

Q4 income

Fourth-quarter gross margin was 57.9 percent of revenues in Q4, compared with 55.3 percent of revenues in the prior-year Q4 period. Adjusted gross margin improved 220 basis points year-over-year to 57.9 percent of revenues.

Selling, general and administrative (SG&A) expenses increased 16.1 percent to $373 million, or 37.7 percent of revenues, in the fourth quarter, compared with $321 million, or 33.5 percent of revenues, in Q4 2023.

Adjusted SG&A increased 23.0 percent to $373 million, or 37.7 percent of revenues in Q4, compared with $303 million, or 37.7 percent of revenues, in the 2023 Q4 period.

Income from operations decreased 4.6 percent to $200 million, or 20.2 percent of revenues, in Q4, compared with income from operations of $210 million, or 21.8 percent of revenues, in Q4 2023. Adjusted income from operations decreased 13.5 percent to $200 million, or 20.2 percent of revenues, compared with $231 million, or 24.1 percent of revenues, in the prior-year Q4 period.

Diluted earnings per share amounted to $6.36, a 52.9 percent year-over-year increase from $4.16 per diluted share in the prior-year period. Adjusted diluted earnings per share of $2.52 decreased 2.3 percent from $2.58 per diluted share in Q4 2023, which excludes the current period tax impact of intra-entity transactions.

“We delivered another record year for Crocs, Inc., highlighted by revenue growth of 4 percent to $4.1 billion and adjusted earnings-per-share growth of 9 percent. We generated exceptional operating cash flow of approximately $990 million, which enabled us to return value to shareholders through more than $550 million in share repurchases while fortifying our balance sheet through the pay down of approximately $320 million of debt,” said Rees.