Expects To Exceed Full-Year Operating Margin
Target
Anticipates 2024 Enterprise Revenue Growth Of
3-5%
BROOMFIELD, Colo., Jan. 8, 2024
/PRNewswire/ -- Crocs, Inc. (NASDAQ: CROX), a world leader in
innovative casual footwear for all, today announced it expects
record 2023 revenues of approximately $3.95
billion, which would represent over 11% 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.
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," said Andrew Rees, Chief Executive Officer. "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."
Updated Fourth Quarter and 2023 Outlook
- We expect fourth quarter 2023 revenues to grow over 1% compared
to 2022, above our guidance for a decline of (4%) to (1%), with the
Crocs Brand growing almost 10% and HEYDUDE down (19%) and ahead of
guidance.
- We expect full year 2023 revenues to grow over 11% compared to
2022, slightly above our guidance of 10% to 11% growth, with our
Crocs Brand growing over 13% surpassing the $3 billion mark and HEYDUDE revenues of
approximately $949 million.
- We expect full year 2023 non-GAAP operating margin to now be in
excess of 27%.
- We paid down approximately $277
million of net debt and repurchased $25 million in stock in the fourth quarter.
Preliminary 2024 Outlook
With respect to 2024, we expect revenue growth of 3% to 5%
compared to 2023 comprised of 4% to 6% growth for the Crocs brand
and flat to slightly up for HEYDUDE Brand.
We expect 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%.
Segment Reporting Change
In tandem with this press release, we announced on Form 8-K our
plans to change our segment reporting from four reportable segments
to two with the filing of our 2023 Form 10-K. This anticipated
change aligns with how we manage our business. Our new
segments will comprise of the Crocs Brand and the HEYDUDE Brand.
Please refer to our 8-K for more detailed information.
ICR Conference
We will present at the 2024 ICR Conference today, January 8, 2024 at 9:00 am
ET. A live broadcast of our presentation may be found on the
Investor Relations section of the Crocs Inc. website,
investors.crocs.com. A replay of the webcast will remain available
on the website after the presentation.
About Crocs, Inc.:
Crocs, Inc. (Nasdaq: CROX), headquartered in Broomfield, Colorado, is a world leader in
innovative casual footwear for all, combining comfort and style
with a value that consumers know and love. The Company's brands
include Crocs and HEYDUDE, and its products are sold in more than
85 countries through wholesale and direct-to-consumer channels. For
more information on Crocs, Inc. visit investors.crocs.com. To learn
more about our brands, visit www.crocs.com or www.heydude.com.
Individuals can also visit
https://investors.crocs.com/news-and-events/ and follow both Crocs
and HEYDUDE on their social platforms.
Forward Looking Statements
This press release includes estimates, projections, and
statements relating to our business plans, commitments, objectives,
and expected operating results that are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended.
These statements include, but are not limited to, statements
regarding potential impacts to our business related to our supply
chain challenges, cost inflation, our financial condition, brand
and liquidity outlook, and expectations regarding our future
revenue, margins, non-GAAP adjustments, tax rate, earnings per
share, debt ratios and capital expenditures, share repurchases, the
acquisition of HEYDUDE and benefits thereof, Crocs' strategy,
plans, objectives, expectations (financial or otherwise) and
intentions, future financial results and growth potential,
statements regarding fourth quarter, full year 2023, and full year
2024 financial outlook and future profitability, cash flows, and
brand strength, anticipated product portfolio and our ability to
deliver sustained, highly profitable growth and create significant
shareholder value. These statements involve known and unknown
risks, uncertainties, and other factors, which may cause our actual
results, performance, or achievements to be materially different
from any future results, performances, or achievements expressed or
implied by the forward-looking statements. These risks and
uncertainties include, but are not limited to, the following: our
expectations regarding supply chain disruptions; cost inflation;
current global financial conditions, the effect of competition in
our industry; our ability to effectively manage our future growth
or declines in revenues; changing consumer preferences; our ability
to maintain and expand revenues and gross margin; our ability to
accurately forecast consumer demand for our products; our ability
to successfully implement our strategic plans; our ability to
develop and sell new products; our ability to obtain and protect
intellectual property rights; the effect of potential adverse
currency exchange rate fluctuations and other international
operating risks; and other factors described in our most recent
Annual Report on Form 10-K under the heading "Risk Factors" and our
subsequent filings with the Securities and Exchange Commission.
Readers are encouraged to review that section and all other
disclosures appearing in our filings with the Securities and
Exchange Commission.
All information in this document speaks only as of January 8, 2024. We do not undertake any
obligation to update publicly any forward-looking statements,
whether as a result of the receipt of new information, future
events, or otherwise, except as required by applicable law.
Category: Investors
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
GUIDANCE
Full Year 2023
(estimated):
|
|
|
Approximately:
|
Non-GAAP operating
margin reconciliation:
|
|
GAAP operating
margin
|
>25.5%
|
Non-GAAP adjustments
associated with distribution center investments &
Other
|
1.5 %
|
Non-GAAP operating
margin
|
>27.0%
|
Our guidance for "Non-GAAP Operating Margin" is a non-GAAP
financial measure that excludes or otherwise has been adjusted for
special items from our U.S. GAAP financial statements, such as
inventory write-offs, duplicate rent costs, bad debt expense. We
consider these items to be necessary adjustments for purposes of
evaluating our ongoing business performance and are often
considered non-recurring. Such adjustments are subjective and
involve significant management judgment. We are unable to reconcile
Crocs Inc. 2024 non-GAAP operating margin guidance measures to
their nearest U.S. GAAP measures without unreasonable efforts
because we are unable to predict with a reasonable degree of
certainty the actual impact of the special and other non-core
items. By their very nature, special and other non-core items are
difficult to anticipate with precision because they are generally
associated with unexpected and unplanned events that impact our
company and its financial results. Therefore, we are unable to
provide a reconciliation of these measures.
|
Investor
Contact:
|
Erinn Murphy, Crocs,
Inc.
|
|
|
(303)
848-7005
|
|
|
emurphy@crocs.com
|
|
|
|
|
PR
Contact:
|
Melissa Layton, Crocs,
Inc.
|
|
|
(303)
848-7885
|
|
|
mlayton@crocs.com
|
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SOURCE Crocs, Inc.