Business
Crocs, Inc. Expects Record Annual Revenues of ~$3.95B, Up Over 11% Year-Over-Year
Expects To Exceed Full-Year Operating Margin Target Anticipates 2024 Enterprise Revenue Growth Of 3-5% BROOMFIELD, Colo., Jan. 8, 2024 /PRNewswire/ -- Crocs,
About this update from Crocs, Inc.
[{"type":"text","content":"Expects To Exceed Full-Year Operating Margin Target\nAnticipates 2024 Enterprise Revenue Growth Of 3-5% \nBROOMFIELD, Colo., Jan. 8, 2024 /PRNewswire/ -- Crocs, Inc. (NASDAQ: CROX), a world leader in innovative casual footwear for all, today announced it expects record 2023 revenues of approximately $3.95 billion, which would represent over 11% growth compared to 2023.\n\"2023 was a strong year for Crocs, Inc. that culminated in a successful holiday season with market share gains for both brands. 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-cash flow generation enabled us to pay down $277 million in net debt in the quarter, bringing our full-year debt pay down to $665 million,\" said Andrew Rees, Chief Executive Officer. \"We are coming into 2024 from a position of strength and are making the decision to reinvest our best-in-class margins into focused strategic investments as we continue to set ourselves up for long-term, durable growth.\"\nUpdated Fourth Quarter and 2023 Outlook\nWe expect fourth quarter 2023 revenues to grow over 1% compared to 2022, above our guidance for a decline of (4%) to (1%), with the Crocs Brand growing almost 10% and HEYDUDE down (19%) and ahead of guidance.We expect full year 2023 revenues to grow over 11% compared to 2022, slightly above our guidance of 10% to 11% growth, with our Crocs Brand growing over 13% surpassing the $3 billion mark and HEYDUDE revenues of approximately $949 million.We expect full year 2023 non-GAAP operating margin to now be in excess of 27%.We paid down approximately $277 million of net debt and repurchased $25 million in stock in the fourth quarter.Preliminary 2024 Outlook\nWith respect to 2024, we expect revenue growth of 3% to 5% compared to 2023 comprised of 4% to 6% growth for the Crocs brand and flat to slightly up for HEYDUDE Brand.\nWe expect gross margin improvement over 2023 and plan to reinvest these dollars into brand accretive and strategic SG&A investments. This will result in 2024 non-GAAP operating margins of approximately 25%.\nSegment Reporting Change\nIn tandem with this press release, we announced on Form 8-K our plans to change our segment reporting from four reportable segments to two with the filing of our 2023 Form 10-K. This anticipated change aligns...