Crocs (CROX, Financial) has reported first-quarter revenue of $937.3 million, surpassing the anticipated $907.92 million. Despite challenging economic conditions, both the Crocs and HEYDUDE brands have delivered exceptional results. The company achieved higher-than-expected gross and operating margins, as well as increased adjusted earnings per share and cash flow.
The robust financial performance has enabled Crocs to enhance shareholder returns through share repurchases totaling $61 million, while maintaining a healthy net leverage position. This quarter's achievements highlight Crocs' ability to navigate economic fluctuations and strengthen its market presence.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Crocs Inc (CROX, Financial) is $121.55 with a high estimate of $153.00 and a low estimate of $83.00. The average target implies an upside of 20.63% from the current price of $100.76. More detailed estimate data can be found on the Crocs Inc (CROX) Forecast page.
Based on the consensus recommendation from 16 brokerage firms, Crocs Inc's (CROX, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Crocs Inc (CROX, Financial) in one year is $133.18, suggesting a upside of 32.18% from the current price of $100.76. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Crocs Inc (CROX) Summary page.
CROX Key Business Developments
Release Date: February 13, 2025
- Total Revenue: $4.1 billion for the full year 2024, a 4% increase from the prior year.
- Adjusted Gross Margin: 58.8%, a 230-basis point increase over the prior year.
- Adjusted Operating Margin: 25.6% for the full year.
- Adjusted Diluted EPS: $13.17, a 9% increase from the prior year.
- Free Cash Flow: $923 million generated in 2024.
- Debt Repayment: $323 million paid down in 2024.
- Share Repurchase: Approximately 4.3 million shares bought back for $551 million.
- Crocs Brand Revenue: $3.3 billion, a 10% increase from the prior year.
- HEYDUDE Brand Revenue: $824 million, a 13% decrease from the prior year.
- International Revenue Growth: 19% increase, with China growing 64%.
- Store Count: Approximately 2,200 Crocs mono-brand doors, including 390 owned and operated stores.
- Inventory Balance: $356 million as of December 31, a 7% decline from the prior year.
- Adjusted SG&A Rate: 33.2%, up 450 basis points compared to the prior year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Crocs Inc (CROX, Financial) achieved a record revenue growth of 4% in 2024, reaching $4.1 billion in total revenues.
- The company reported adjusted gross margins of 58.8%, a 230-basis point improvement over the previous year.
- Crocs Brand revenues grew by 10%, with significant international growth of 19% and North America growth of 3%.
- Strong cash flow generation of $923 million allowed Crocs Inc (CROX) to pay down $323 million in debt and repurchase approximately 4.3 million shares for $551 million.
- The company is expanding its international footprint, with plans to open new stores in growth markets such as China, India, Southeast Asia, and the Middle East.
Negative Points
- HEYDUDE brand revenues were down 13% from the prior year, with wholesale revenues declining by 20%.
- The company faces an approximate $11 million headwind to gross profit from additional tariffs on goods imported from China and Mexico.
- Adjusted SG&A expenses increased by 23% in the fourth quarter, driven by investments in DTC, talent, and marketing.
- Crocs Inc (CROX) anticipates a decline in HEYDUDE revenue by approximately 7% to 9% for 2025.
- The company expects enterprise revenue growth to be impacted by a $60 million currency headwind in 2025.
