“We delivered a record year for Crocs capped off by a strong fourth quarter that exceeded expectations across all metrics. Revenues of nearly 4 billion US dollars grew over 11% underpinned by industry-leading operating margins and double-digit earnings per share growth. Crocs Brand grew across all regions and channels, highlighting the power of our strategy and disciplined execution. We made good progress in the fourth quarter towards returning our Heydude Brand to a pull-market position resulting in improved gross margins and healthy inventory levels exiting the year”, commented Andrew Rees, Chief Executive Officer.

Fiscal 2023 Results

The company reported a revenue of 3.96 billion US dollars in the twelve months to the end of December, an increase of 11.5%, or 12.0% on a constant currency basis, on a comparable basis to its fiscal 2022. In the fourth quarter alone, Crocs’ revenue grew by 1.6%, or 1.5% on a constant currency basis, to 960 million US dollars, as compared to the same period of the previous year.

Crocs brand full year revenue totalled 3.0 billion US dollars, up by 13.3%, or 14.0% on a constant currency basis, on a comparable basis to the prior year. The brand’s wholesale revenue rose by 8.4% (or 9.3% on a constant currency basis) year-over-year, while the DTC revenue increased by 18.5% (19.0% on a constant currency basis) year-over-year in this period.

Over the same twelve-month period, Heydude’s revenue grew by 6.0%, as compared to the previous year, reaching 949 million US dollars. While its wholesale revenue decreased by 1.3% year-over-year, its DTC revenue increased by 18.9% year-over-year.

Crocs 2023 gross margin improved to 55.3% from 52.5% in the prior year, and its adjusted gross margin increased 240 basis points to 55.7% from 53.3% in the same period of 2022.

In the twelve months to the 31^st of December, the company posted diluted earnings per share growth of 46.8% year-over-year to 12.79 US dollars. Adjusted diluted earnings per share rose by 10.2% year-over-year to 12.03 US dollars, excluding the fourth quarter tax benefit.

In the fourth quarter, diluted earnings per share were 4.16 US dollars, as compared to 2.20 US dollars in the same period of last year, due to an increased tax benefit. However, adjusted diluted earnings per share decreased by 2.6% year-over-year to 2.58 US dollars.

Guidance

For fiscal 2024, Crocs expects its revenue to increase between 3% and 5%, as compared to 2023. This includes growth in the range of 4% to 6% for the Crocs brand and flat to slightly increasing revenue for Heydude. It also anticipates adjusted diluted earnings per share between 12.05 US dollars to 12.50 US dollars.

For the first quarter alone, the company expects its revenue to be down 1.5% and up 0.5%, on a comparable basis to the same period of 2023. This includes an increase for the Crocs brand in the range of 6% to 8% and a decrease in the range of 23% to 20% against the first quarter of the prior year. Adjusted diluted earnings per share should be between 2.15 US dollars to 2.25 US dollars.