Crocs (CROX) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 results with $4.1B in revenue, up 4% year-over-year, and adjusted diluted EPS of $13.17, up 9% year-over-year.

• Crocs brand revenue grew 10% to $3.3B, with international up 19% and North America up 3%; HEYDUDE revenue was $824M, with DTC channel returning to growth in Q4.

• Generated $990M in operating cash flow, enabling $323M in debt repayment and $551M in share repurchases.

• Board approved $1B increase in share repurchase authorization, now at $1.3B.

• Global leader in casual footwear with Crocs and HEYDUDE brands, targeting a $160B+ TAM.

Financial highlights

• FY24 revenue: $4.1B (+4% vs. LY); Crocs brand $3.3B (+10% vs. LY), HEYDUDE $824M (-13% vs. LY).

• Adjusted gross margin for 2024 was 58.8%, up 230 bps; Crocs brand at 61.6%, HEYDUDE at 48.1%.

• Adjusted operating margin for 2024 was 25.6%, down 210 bps due to planned SG&A investments.

• Free cash flow reached $923M; inventory declined 7% to $356M.

• Diluted EPS rose 24% to $15.88; adjusted diluted EPS up 9.5% to $13.17.

Outlook and guidance

• 2025 enterprise revenue expected to grow 2%-2.5% reported, 3.5%-4% constant currency; Crocs brand up 4.5%, international up 10%, North America slightly up.

• HEYDUDE revenue expected down 7%-9% in 2025; DTC growth expected, no wholesale growth embedded.

• Adjusted operating margin guided to ~24% for 2025, with 60 bps headwind from FX and tariffs.

• Adjusted diluted EPS expected in the range of $12.70-$13.15.

• Q1 2025 revenue expected down 3.5% reported, Crocs brand flat to down 1%, HEYDUDE down 14%-16%.