Crocs, Inc. Exceeds Q4 Earnings Estimates
Footwear and apparel company Crocs, Inc. (CROX) has turned heads with its fourth-quarter 2023 earnings report. Despite mixed results, the company’s adjusted earnings per share of $2.58 surprised analysts, surpassing the Zacks Consensus Estimate of $2.38.
The Q4 financial results also revealed a 1.6% year-over-year revenue growth, totaling $960.7 million. While this figure narrowly missed the Zacks Consensus Estimate, it demonstrated a promising uptrend in the company’s performance.
Q4 Performance Highlights
The fourth quarter saw the Crocs brand’s revenues soar by 10%, reaching $732.5 million. This included a noteworthy 12.5% surge in direct-to-consumer (DTC) revenues, signaling remarkable consumer demand and engagement. However, the HEYDUDE brand experienced a decline, with revenues falling by 18.5% to $227.6 million.
In terms of regional performance, North America exhibited a 3.1% revenue increase, while the International market boasted an impressive 24.9% surge in revenues year over year.
Despite the rise in revenues, Crocs’ adjusted operating income dipped by 6% year over year to $231.1 million. The company also forecasted a capital expenditure of $120-$130 million in 2024 to support its distribution expansion and technological enhancement initiatives.
Glimpse into the Future
Crocs anticipates a year-over-year revenue growth of 3-5% at constant currency in 2024. The company’s revenue projection for 2024 shows a positive outlook, indicating the potential for further expansion and market dominance.
The apparel industry is volatile, but Crocs plans to maintain a robust adjusted operating margin of 25% and aims for adjusted earnings of $12.05-$12.50 per share, an improvement from last year’s $10.92 per share.
Explore Investment Opportunities
If you are considering investment opportunities, Crocs is not the only stock worth exploring. Other companies such as G-III Apparel Group, Royal Caribbean, and lululemon athletica offer solid investment prospects and a diversified portfolio to consider.
G-III Apparel Group, for instance, has exhibited strong performance, sporting a Zacks Rank #1 (Strong Buy) and a trailing four-quarter earnings surprise of 541.8%, on average.
Similarly, Royal Caribbean and lululemon athletica also present favorable investment potential, each with their unique market position and financial performance.
For further insights and investment opportunities, stay updated with Zacks Investment Research, a reputable resource for stock analysis and recommendations.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
