Crocs (CROX) stock climbs as FQ4 results top estimates across the board

Crocs (NASDAQ: CROX) reported robust results for the fiscal fourth quarter, sending its shares climbing 2.4% in premarket trading Thursday.

In particular, the footwear maker posted earnings per share (EPS) of $2.58, beating the consensus estimates of $2.34. Revenue came in at $960 million, also above the projected $952.53 million.

Gross margin for the quarter reached 55.7%, an improvement from 53.3% in the previous year and above the expected 54.9%. The adjusted operating margin came in at 24.1%, down from 26% year-over-year but better than the 22.2% anticipated by analysts.

Looking ahead, Crocs saw an EPS of $2.15 to $2.25 for Q1 2024, slightly below the consensus estimate of $2.26.

For the full year 2024, the company expects an EPS ranging from $12.05 to $12.50, surpassing the consensus estimate of $11.95.

Revenue growth is expected to range between 3% and 5% this year compared to 2023, compared to the average projection of 4.2%.

"We made good progress in the fourth quarter towards returning our HEYDUDE Brand to a pull-market position resulting in improved gross margins and healthy inventory levels exiting the year," said Andrew Rees, Chief Executive Officer of Crocs.

"We are starting off 2024 from a position of strength and taking the opportunity to reinvest into several key strategic areas as we continue to lay the foundation for durable market share gains."

By Vahid Karaahmetovic

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