American footwear company Crocs has delivered a solid performance in the fiscal year 2024 (FY24), with consolidated revenues increasing 3.5% to $4.10bn, from $3.96bn in FY23.
The company’s direct-to-consumer (DTC) segment drove much of the growth, posting a strong 7.2% increase, while wholesale revenues saw only modest gains, rising 0.2%.
Go deeper with GlobalData
Crocs’ net income for the fiscal year rose to $950.07m, up from $792.56m in FY23. Shareholders benefitted from a 24.2% increase in diluted earnings per share, which climbed to $15.88 from $12.79.
However, operating income dipped slightly to $1.02bn in FY24, down 1% from $1.04bn in FY23.
This resulted in an operating margin of 24.9%, compared to 26.2% the previous year.
On a positive note, the company’s gross margin improved to 58.8%, up from 55.8%, with an adjusted gross margin increase of 230 basis points, rising to 58.8% from 56.5%.
Crocs’ gross profit for FY24 was $2.41bn, up from $2.21bn in FY23.
Crocs chief financial officer Susan Healy said: “In 2024, we stepped up our investment in our brands while driving industry leading margins. We expect operating margin to be approximately 24.0% for 2025, and beyond this year, we are committed to maintaining an annual operating margin at or above this level. We believe that our continued investments in our brands and exceptional cash flow generation will support Crocs, for sustained growth and value creation over the long-term.”
In the fourth quarter (Q4) of the fiscal year, the company saw its consolidated revenues increased by 3.1% to reach $990m.
The DTC segment performed well with a 5.5% growth, while wholesale revenues contracted by 0.2%.
The quarter also saw strong gross margins at 57.9%, up from 55.3%, and an adjusted gross margin increase of 220 basis points to 57.9% from 55.7%.
However, income from operations fell by 4.6% to $200m in Q4 FY24, leading to an operating margin of 20.2%, down from 21.8% in the previous year.
Diluted earnings per share for the quarter surged 52.9%, reaching $6.36.
In the first quarter of fiscal 2025, Crocs anticipates revenues to fall by 3.5% compared to the same quarter in FY24 at current currency rates, including a negative impact of $19m due to foreign currency fluctuations.
For FY25, the company expects revenue growth of 2% to 2.5% over FY24, factoring in an estimated foreign currency impact of $62m.
Crocs CEO Andrew Rees stated: “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.”
