Crocs’ direct-to-consumer (DTC) segment in FY24 showed a robust growth of 7.2%, or 7.8% when adjusted for currency fluctuations. In contrast, wholesale revenues grew only 0.2%, or 1.1% on a constant currency basis.
Crocs chief executive officer Andrew Rees said: “Our fourth quarter performance exceeded expectations across all metrics led by Crocs Brand growth of 4%, as the North American business outperformed our plan and China growth accelerated from the third quarter. HEYDUDE revenue was flat to last year, higher than anticipated as direct-to-consumer sales inflected to growth.”
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Crocs key figures from FY24
- Crocs brand revenues increased 8.8% to $3.28bn over the quarter with DTC revenue up 9.9% to $1.67bn and wholesale revenue rose 7.6% to $1.61bn.
- HEYDUDE brand revenues decreased 13.2% to $824m.
- North America saw a 3.1% increase in revenues to $1.83bn, while international revenues grew 17.0% to $1.45bn.
Net income of Crocs for the fiscal rose to $950.07m, which translates to diluted earnings per share (EPS) of $15.88, up 24.2%.
Despite these gains, income from operations declined by 1% to $1.02bn, resulting in an operating margin of 24.9%, compared to 26.2% in the previous year.
Its selling, general and administrative (SG&A) expenses totalled $1.38bn in FY24, reflecting an 18.3% increase from $1.17bn, and accounted for 33.8% of revenues.
Gross profit for the fiscal rose $2.41bn from $2.21bn in FY23. Its gross margin improved to 58.8%, up from 55.8%, with an adjusted gross margin increase of 230 basis points.
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By GlobalDataCrocs fourth-quarter (Q4) performance highlights
For Q4, Crocs’ consolidated revenues grew by 3.1%, or 3.8% on a constant currency basis, reaching $990m.
The DTC segment continued its growth with a 5.5% increase, while wholesale revenues fell by 0.2%.
- Crocs brand revenues increased 4.0% to $762m and its DTC revenues grew 5.0% to $447m. Crocs’ wholesale revenues rose 2.7% to $315m.
- HEYDUDE brand revenues remained flat at $228m, with 7.2% revenue growth in DTC offset by 8.6% decline in wholesale.
Geographically, North America saw flat revenues of $471m, while international revenues increased 11.5% to $291m.
Income from operations fell by 4.6% to $200m, leading to an operating margin of 20.2%, down from 21.8% a year earlier. Diluted earnings per share for the quarter rose by 52.9% to $6.36.
Gross profit for the quarter was $572.92m, increasing from $530.69m in the prior year quarter.
Its gross margin also improved to 57.9%, up from 55.3%, with an adjusted gross margin increase of 220 basis points.
Q1 and full year 2025 outlook
For the first quarter (Q1) of fiscal 2025 (FY25), Crocs expects revenues to decline by approximately 3.5% compared to Q1 of FY24 at current currency rates, with a potential negative impact of around $19m due to foreign currency fluctuations.
For the full year FY25, the company anticipates revenue growth between 2% and 2.5%, with foreign currency effects potentially reducing revenues by $62m.
“For 2025, we are expecting another year of revenue growth, led by mid-single digit growth in the Crocs Brand. We are pleased by the early signs of progress we made for HEYDUDE during the fourth quarter and are taking a prudent approach to how we shape 2025 guidance for HEYDUDE as we focus on reigniting the brand,” Rees added.
