Crocs Q4 earnings surpass expectations, shares surge
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Shares of casual footwear company Crocs surged over 16 percent in premarket US trading after the company beat analysts' fourth-quarter net income expectations.
While adjusted net income for the quarter decreased 7 percent to 146.2 million dollars, it surpassed the 133.7 million dollars forecast, according to Bloomberg consensus estimates.
Adjusted earnings per share also exceeded Wall Street estimates, reaching 2.52 dollars compared to the expected 2.26 dollars, Investing.com reported. Sales saw a 3.1 percent rise to 989.8 million dollars, outperforming the projected 962 million dollars.
"Our fourth quarter performance exceeded expectations across all metrics led by Crocs brand growth of 4 percent, as the North American business outperformed our plan and China growth accelerated from the third quarter,” said Andrew Rees, the company’s chief executive officer.
Crocs 2024 revenues and earnings increase
For the full year 2024, Crocs' revenues reached 4.1 billion dollars, a 3.5 percent increase. Diluted earnings per share rose 24.2 percent to 15.88 dollars, while adjusted diluted earnings per share increased 9.5 percent to 13.17 dollars.
"We delivered another record year for Crocs, Inc. highlighted by revenue growth of 4 percent to 4.1 billion dollars and adjusted earnings-per-share growth of 9 percent,” added Rees.
The company also generated substantial operating cash flow, enabling share repurchases and debt reduction.
Crocs forecasts modest revenue growth
Looking ahead to 2025, Crocs anticipates revenue growth of 2 percent to 2.5 percent. The Crocs brand is projected to grow by approximately 4.5 percent, while the Heydude brand is expected to decline by 7 percent to 9 percent. Adjusted diluted earnings per share are forecasted to be between 12.70 dollars and 13.15 dollars.
Rees expressed satisfaction with the initial progress observed in the Heydude brand during the fourth quarter. However, he emphasised a cautious approach to the 2025 Heydude guidance, prioritising brand revitalisation.
- Crocs exceeded fourth-quarter expectations, with adjusted net income surpassing forecasts and sales rising above projections.
- Full-year 2024 results showed revenue growth of 3.5 percent and a significant increase in diluted earnings per share.
- Crocs forecasts a modest revenue growth of 2 percent to 2.5 percent for 2025, with the Crocs brand expected to grow while the Heydude brand is projected to decline.