Crocs, Inc. (NASDAQ: CROX) made a significant move in the market today with the stock soaring by 19.4% to trade at $103.27 per share. This surge follows the company's announcement of its expectations for record annual revenues of approximately $3.95 billion for 2023, reflecting a remarkable growth of over 11% compared to the previous year.
Andrew Rees, the Chief Executive Officer of Crocs, expressed confidence in the company's performance, stating, "2023 was a strong year for Crocs, Inc. that culminated in a successful holiday season with market share gains for both brands." He further added, "We are coming into 2024 from a position of strength and are making the decision to reinvest our best-in-class margins into focused strategic investments as we continue to set ourselves up for long-term, durable growth."
The company also provided an updated outlook for the fourth quarter of 2023, anticipating a revenue growth of over 1% compared to the previous year, surpassing the earlier guidance. Crocs, Inc. expects the full year 2023 revenues to exceed 11% growth compared to 2022, with the Crocs brand alone achieving over 13% growth, surpassing the $3 billion mark. Additionally, the company anticipates that its full year 2023 non-GAAP operating margin will exceed 27%.
Looking ahead to 2024, Crocs, Inc. projects a revenue growth of 3% to 5% compared to 2023, with a focus on gross margin improvement and planned reinvestment into brand accretive and strategic SG&A investments. The company aims for 2024 non-GAAP operating margins of approximately 25%.
In addition to its financial outlook, Crocs, Inc. also announced a change in its segment reporting, consolidating from four reportable segments to two in alignment with how the company manages its business. This move is expected to be detailed in the company's 2023 Form 10-K filing.
Erinn Murphy, an analyst at Crocs, Inc., commented, "We are pleased to report our expectations for record annual revenues of approximately $3.95 billion, which reflects the strength of our brands and the effectiveness of our strategic initiatives."
The full 8-K submission from Crocs, Inc. with comprehensive details on their performance and outlook can be accessed here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $1,088 | $1,231 | $1,386 | $2,313 | $3,555 | $3,947 |
| Revenue Growth | n/a | 13.08% | 12.62% | 66.92% | 53.67% | 11.04% |
| Operating Margins | 6% | 10% | 15% | 30% | 24% | 27% |
| Net Margins | 5% | 10% | 23% | 31% | 15% | 17% |
| Net Income (MM) | $50 | $119 | $313 | $726 | $540 | $677 |
| Net Interest Expense (MM) | $1 | $9 | $7 | $22 | $136 | $175 |
| Depreciation & Amort. (MM) | $29 | $24 | $28 | $32 | $39 | $53 |
| Earnings Per Share | -$1.01 | $1.66 | $4.56 | $11.39 | $8.71 | $10.87 |
| EPS Growth | n/a | 264.36% | 174.7% | 149.78% | -23.53% | 24.8% |
| Diluted Shares (MM) | 68 | 72 | 69 | 64 | 62 | 62 |
| Free Cash Flow (MM) | $102 | $53 | $225 | $511 | $499 | $836 |
| Capital Expenditures (MM) | $12 | $37 | $42 | $56 | $104 | $101 |
| Current Ratio | 2.06 | 1.65 | 1.69 | 1.72 | 1.6 | 1.51 |
Crocs benefits from growing revenues and increasing reinvestment in the business, exceptional EPS growth, and decent operating margins with a positive growth rate. The company's financial statements show irregular cash flows and healthy leverage.
