#United States #Inc. #Crocs #HEYDUDE #CROX #Broomfield, Colorado

Crocs, Inc. Achieves Record Revenue in 2024

Crocs, Inc. (NASDAQ: CROX), a leader in casual footwear, has reported its most successful year yet in 2024, posting remarkable financial results, including an impressive $4.1 billion in annual revenues, marking a 4% increase from the previous year. The growth reflects Crocs' effective strategies in product innovation and market expansion, driven by robust performance from its flagship brand and a steady commitment to enhancing shareholder value.

Financial Highlights of 2024

In her remarks, CEO Andrew Rees highlighted the significant achievements of Crocs, particularly in the fourth quarter. The consolidated revenue for this period reached $990 million, which equates to an increase of 3.1% year-over-year. The direct-to-consumer segment exhibited a stellar 5.5% growth.

In terms of profitability, Crocs managed to generate operating cash flow of around $990 million, enabling a shareholder return of over $550 million through stock repurchase programs. The company also successfully reduced its long-term debt by approximately $320 million.

Earnings Growth

Diluted earnings per share increased notably. For the full year of 2024, diluted EPS rose to $15.88, a 24% increase from $12.79 the previous year. Adjusted diluted EPS also increased by 9%, reaching $13.17, showcasing Crocs' ability to maintain profitability amid challenging market conditions.

Brand Performance Overview

The fourth quarter results displayed strong growth across various metrics: the Crocs brand alone generated $762 million in revenue, reflecting a 4% increase from the prior year. Direct-to-consumer sales saw a 5% rise, which underscores the brand's successful engagement with customers.

International revenue for the Crocs brand skyrocketed by 11.5%, while the company faced challenges with its HEYDUDE brand, which maintained flat revenue year-over-year at $228 million. The fluctuation in HEYDUDE revenue is attributed to strategic adjustments in brand positioning, signaling a thoughtful approach as Crocs aims to reignite growth for HEYDUDE in the coming year.

Expectations for 2025

Looking ahead, Crocs projects a continued growth trajectory, with expected revenue growth of 2% to 2.5% compared to 2024, driven primarily by mid-single-digit growth in the Crocs brand. Initial signs of recovery for HEYDUDE, particularly in direct-to-consumer sales, instill a sense of optimism for the future.

Furthermore, the management anticipates maintaining an operating margin of approximately 24% for 2025, reinforcing its commitment to operational efficiency and effective capital management.

Share Repurchase Authorization

In a demonstration of confidence in its financial standing, the Board of Crocs approved an increase in their share repurchase authorization by $1 billion, now totaling about $1.3 billion. This initiative is emblematic of Crocs' ongoing strategy to enhance shareholder returns and is anticipated to drive further value creation.

Conclusion

In conclusion, Crocs, Inc. has achieved significant milestones in 2024, reinforcing its leadership in the casual footwear market and establishing a solid foundation for sustained growth. The leadership team remains committed to innovating and expanding the brand while focusing on profitability, shareholder returns, and navigating the complexities of the competitive landscape effectively. With a focus on customer engagement and operational excellence, Crocs is poised for another promising year ahead.