Crocs (CROX) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 revenues of $4.1 billion, up 4% year-over-year, with adjusted diluted EPS up 9% to $13.17.

• Crocs and HEYDUDE brands delivered diversified growth, with Crocs brand revenues up 10% to $3.3 billion and HEYDUDE revenues at $824 million.

• Generated strong cash flow, enabling $323 million in debt repayment and $551 million in share repurchases.

• Board approved a $1 billion increase in share repurchase authorization, totaling $1.3 billion available.

• Fourth quarter performance exceeded expectations, led by 4% Crocs Brand growth and flat HEYDUDE revenue.

Financial highlights

• Adjusted gross margin for 2024 was 58.8%, up 230 basis points year-over-year.

• Adjusted operating margin was 25.6%, down 210 basis points due to planned SG&A investments.

• Adjusted diluted EPS increased 9% to $13.17; inventory declined 7% to $356 million.

• Free cash flow reached $923 million; liquidity included $180 million cash and $809 million revolver capacity.

• DTC revenue up 7.2%, wholesale up 0.2% for the year.

Outlook and guidance

• 2025 enterprise revenue expected to grow 2%-2.5% reported, 3.5%-4% constant currency.

• Crocs brand revenue to grow ~4.5%, led by 10% international growth; North America slightly up.

• HEYDUDE revenue expected down 7%-9%, with DTC growth offset by wholesale declines.

• 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.