Clogs maker Crocs cleared expectations for Q4 results early Thursday. CROX stock rallied to break out from its first base in almost a year.
Crocs reported a 2.6% adjusted earnings decline to $2.58 per share, compared to FactSet expectations of a 10.6% drop to $2.37 per share. GAAP earnings increased 89% to $4.16 per share while analysts predicted $2.20 per share. Revenue rose 1.6% to $960 million, edging out forecasts of $958 million, but slowing for the fourth straight quarter.
Direct-to-consumer sales increased 6.8% while wholesale revenues shrunk 4.6%. Crocs brand revenue increased 10% to $732 million while HeyDude sales tumbled 18.5% to $228 million. However, HeyDude sales managed to come in ahead of Crocs' forecasts of a 19% sales decline.
The Broomfield, Colo.-based company reported full-year adjusted earnings increased 10.2% to $12.03 per share. Diluted earnings leapt 46.8% to $12.79 per share. Revenue for 2023 increased 11.5% to a record $3.96 billion.
FactSet expected 2023 adjusted earnings of $11.84 per share while sales were in-line with forecasts.
The company's full-year earnings rose for the last six years on an adjusted basis. Crocs hasn't reported an EPS loss on an adjusted basis since 2016.
Crocs guided Q1 adjusted earnings between $2.15 per share to $2.25 per share while revenue eases 1.5% to 0.5%. FactSet predicts Q1 earnings of $2.25 per share on a 0.6% sales decline to $879 million.
Crocs maintained its 2024 outlook following its Jan. 8 update after delivering disappointing guidance in its Q3 report from November.
For fiscal 2024, Crocs expects 3% to 5% revenue growth, driven by a 4% to 6% increase in Crocs brand sales. The company sees its HeyDude brand sales flat to up slightly from 2023. The clog maker expects full-year adjusted earnings between $12.05 per share and $12.50 per share.
FactSet analysts predict 2024 earnings of $11.90 per share adjusted on $4.13 billion in revenue.
Crocs Stock
CROX stock jumped 12.2% Thursday to about 121.63, easily clearing a 110.90 entry for an eight-week consolidation. The base is about half above, half below the stock's 10-week moving average. It is its first base as it attempts to exit a 10-month consolidation.
Shares on Tuesday slid 2.9% to end its streak of five consecutive daily gains. Crocs rallied 30% so far this year after bolting more than 20% on Jan. 8, after revising its guidance.
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