“We delivered another record year for Crocs, Inc. highlighted by revenue growth of 4% to 4.1 billion US dollars and adjusted earnings-per-share growth of 9%. We generated exceptional operating cash flow of approximately 990 million US dollars, which enabled us to return value to shareholders through more than 550 million US dollars in share repurchases while fortifying our balance sheet through the pay down of approximately 320 million US dollars of debt”, commented Andrew Rees, Chief Executive Officer.

Fourth Quarter Results

In the final quarter of the year 2024, Crocs reported consolidated revenue of 990 million US dollars, reflecting an increase of 3.1%, or 3.8% on a constant currency basis, as compared to the same period of the previous year. It should be noted that while the quarterly DTC revenue grew by 5.5%, or 6.1% on a constant currency basis, wholesale revenue contracted by 0.2%, or grew by 0.7% on a constant currency basis.

Turning to brand performance. The Crocs brand contributed 762 million US dollars to the total revenue for the period, up by 4.0%, or 4.9% on a constant currency basis, from the same period of 2023, while Heydude’s contribution was flat at 228 million US dollars.  

The company’s fourth quarter gross margin improved to 57.9% from 55.3% in the same period of the prior year, and the adjusted gross margin improved to 57.9% from 55.7% in the same period of the prior year.

However, in the fourth quarter of 2024, Crocs’ income from operations was 200 million US dollars and the income operating margin was 20.2%, on a comparable basis to 210 million US dollars and 21.8% in a similar period of the previous year. Adjusted income from operations also decreased to 200 million US dollars from 231 million US dollars, resulting in an adjusted operating margin of 20.2% compared to 24.1%.

In the three months ending on the 31^st of December, the company’s diluted earnings per share increased by 52.9% year-on-year to 6.36 US dollars, but adjusted diluted earnings per share decreased by 2.3% year-on-year to 2.52 US dollars, excluding the current period tax impact of the intra-entity transaction.

Full Year Results

In the full year 2024, Crocs reported a consolidated revenue of 4.1 billion US dollars, an increase of 3.5%, or 4.3% on a constant currency basis, as compared to the previous year. The Crocs brand contributed 3.3 billion US dollars to the total revenue, up by 8.8%, or 9.8% on a constant currency basis, while the Heydude brand contributed 824 million US dollars, down by 13.2%.

The company’s full year income from operations decreased by 1% year-on-year to 1.02 billion US dollars, resulting in an operating margin of 24.9% compared to 26.2%, and the adjusted income from operations decreased by 4% year-on-year to 1.05 billion US dollars, resulting in an adjusted operating margin of 25.6% compared to 27.7%.

In the twelve months to the end of December, Crocs’ diluted earnings per share increased by 24.2% to 15.88 US dollars and adjusted diluted earnings per share increased by 9.5% to 13.17 US dollars, as compared to the full year 2023.

At the end of 2024, the US company strengthened its financial position with 180 million US dollars in cash and equivalents, an increase from 149 million US dollars the previous year, and inventories also declined to 356 million US dollars from 385 million US dollars. Meanwhile, total borrowings were significantly reduced to 1.3 billion US dollars from 1.7 billion US dollars.

Fiscal 2025 Outlook

For fiscal 2025, Crocs expects consolidated revenue growth of approximately 2% to 5% on 2024 and adjusted diluted earnings per share between 12.70 to 13.15 US dollars.