Crocs, Inc. has reported its financial results for the fourth quarter and full year of 2024, revealing record-breaking performance. The company's annual revenues reached $4.1 billion, marking a 4% increase over the previous year.
In terms of diluted earnings per share (EPS), the company saw a substantial increase. Full-year 2024 diluted EPS was up 24% to $15.88, while adjusted diluted EPS grew by 9% to $13.17.
The company's operating cash flow was also exceptional, reaching approximately $990 million for the year. This enabled Crocs, Inc. to return value to shareholders through over $550 million in share repurchases, while also paying down approximately $320 million of debt.
Looking ahead to 2025, the company expects another year of positive revenue growth, particularly driven by mid-single digit growth in the Crocs brand. Additionally, the share repurchase authorization has been upsized by $1 billion, resulting in a total outstanding authorization of approximately $1.3 billion.
Examining the fourth quarter of 2024, consolidated revenues were $990 million, representing a 3.1% increase over the same period the previous year. Gross margin was reported at 57.9%, a notable improvement from the previous year's 55.3%. However, adjusted income from operations decreased by 13.5% from the same period last year, resulting in an adjusted operating margin of 20.2%, down from 24.1%.
For the full year 2024, the company reported a 3.5% increase in consolidated revenues to $4,102 million. Gross margin improved to 58.8% from the previous year's 55.8%, while adjusted operating margin decreased to 25.6% from 27.7%. Diluted earnings per share for the full year 2024 increased by 24.2% to $15.88, with adjusted diluted earnings per share growing by 9.5% to $13.17.
The financial outlook for the first quarter of 2025 anticipates a 3.5% decline in revenues compared to the first quarter of 2024. Adjusted operating margin is expected to be approximately 21.5%, and adjusted diluted earnings per share guidance is set at $2.38 to $2.52.
Looking further ahead to the full year 2025, revenue growth is expected to be approximately 2% to 2.5% higher than the full year 2024. Operating margin is projected to be approximately 24.0%, and adjusted diluted earnings per share guidance is in the range of $12.70 to $13.15.
In terms of the company's brand performance, the Crocs brand saw revenues increase by 8.8% to $3,278 million for the full year 2024, while the Heydude brand experienced a 13.2% decrease in revenues to $824 million.
Crocs, Inc. finished the year with $180 million in cash and cash equivalents, $356 million in inventories, and total borrowings of $1,349 million. Capital expenditures for the year amounted to $69 million.
The company's conference call to discuss these results is scheduled for February 13, 2025, at 8:30 am ET. The market has reacted to these announcements by moving the company's shares 18.9% to a price of $105.62. For more information, read the company's full 8-K submission here.
