Crocs, Inc. is reporting it now expects record 2023 revenues of approximately $3.95 billion, which would represent over 11 percent growth compared to 2023.

“2023 was a strong year for Crocs, Inc. that culminated in a successful holiday season with market share gains for both brands,” said company CEO Andrew Rees. “Fourth-quarter revenue is now expected to exceed our former guidance and we are raising our operating margin target for the year. Our strong free-cash flow generation enabled us to pay down $277 million in net debt in the quarter, bringing our full-year debt pay down to $665 million “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.”

For the updated Q4 and 2023 outlook, Crocs now expects:

  • Fourth quarter 2023 revenues to grow over 1 percent compared to 2022, above its guidance for a decline of 4 percent to 1 percent, with the Crocs Brand growing almost 10 percent and HeyDude down (19 percent) and ahead of guidance;
  • Full year 2023 revenues to grow over 11 percent compared to 2022, slightly above its prior guidance of 10 percent to 11 percent growth, with the Crocs Brand growing over 13 percent, surpassing the $3 billion mark and HeyDude revenues of approximately $949 million;
  • Full year 2023 non-GAAP operating margin to now be in excess of 27 percent.

The company reportedly paid down approximately $277 million of net debt and repurchased $25 million in stock in the fourth quarter.

For its preliminary 2024 outlook Crocs is forecasting:

  • 2024 revenue growth of 3 percent to 5 percent compared to 2023 comprised of 4 percent to 6 percent growth for the Crocs brand and flat to slightly up for HeyDude Brand.
  • 2024 gross margin improvement over 2023 and plan to reinvest these dollars into brand accretive and strategic SG&A investments. This will result in 2024 non-GAAP operating margins of approximately 25 percent.

Segment Reporting Change
Crocs plans to change our segment reporting from four reportable segments to two with the filing of its 2023 Form 10-K. The company said this anticipated change aligns with how they manage the business. The new segments will comprise of the Crocs Brand and the HeyDude Brand.