- Crocs Inc. (CROX) stock surged nearly 18% to $104.60 premarket after Q4 earnings beat expectations with $2.52 per share and $989.7 million in revenue, surpassing consensus forecasts.
- The company provided a cautious Q1 outlook with EPS expected at $2.38 – $2.52 and a revenue drop of 3.5% year-over-year, while the Crocs Brand anticipates flat to 1% decline and HEYDUDE a 16 – 14% decrease.
- For FY25, Crocs is optimistic, forecasting EPS between $12.70 – $13.15 and revenue growth of 2.0 – 2.5%, with significant growth for the Crocs Brand and a strategic, cautious approach to HEYDUDE’s recovery.
Crocs Inc. (CROX) witnessed its stock price surge nearly 18% to $104.60 in premarket trading on Thursday following the release of its financial results for the fourth quarter and the full year of 2024. The company’s performance was marked by a strong beat on both earnings and revenue expectations for the quarter. Crocs reported earnings of $2.52 per share, excluding non-recurring items, which was $0.26 better than the consensus estimate of $2.26. Revenue for the quarter grew by 3.1% year-over-year to $989.7 million, surpassing the consensus of $961.6 million.
Despite this positive performance, Crocs provided a somewhat mixed outlook for the immediate future. For Q1, the company forecasted earnings per share at $2.38 – $2.52, below the consensus of $2.65, and anticipated a revenue decline of 3.5% year-over-year, projecting about $906 million against the expected $928 million. Specifically, the Crocs Brand is expected to be down approximately 1% to flat year-over-year, while the HEYDUDE Brand, which faced challenges, is forecasted to decline by 16% to 14%.
Looking ahead to fiscal year 2025, Crocs has provided more optimistic guidance. The company expects earnings per share to range from $12.70 to $13.15, slightly above the consensus of $12.58, and projects revenue growth of 2.0% to 2.5%, translating to $4.18 to $4.20 billion. Here, the Crocs Brand is set to grow by approximately 4.5%, while HEYDUDE is expected to decline by 9% to 7% from the previous year, indicating a cautious approach to brand revival.
CEO Andrew Rees highlighted the company’s record year, with a 4% revenue increase to $4.1 billion and a 9% growth in adjusted earnings per share. The company also generated significant operating cash flow, around $990 million, which was utilized to return value to shareholders through share repurchases amounting to over $550 million and to reduce debt by about $320 million. Rees noted the outperformance in the North American market and an acceleration in China’s growth for the Crocs Brand, while HEYDUDE managed to maintain flat revenue year-over-year, with direct-to-consumer sales showing growth.
Additionally, Crocs announced an increase of $1 billion to its share repurchase authorization, bringing the total available for repurchases to approximately $1.3 billion. This move signals confidence in the company’s financial health and future prospects, despite the mixed guidance for the near term. The strategic focus for 2025, particularly with a cautious outlook for HEYDUDE, underscores a balanced approach between growth ambitions and brand management in a challenging market environment.
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