Shares of Crocs Inc. (CROX) surged more than 21% in pre-market trading on Thursday, February 13, 2025, following the company's impressive fourth-quarter 2024 results and upbeat outlook for fiscal 2025.
The casual footwear maker reported adjusted earnings per share of $2.52 for Q4 2024, beating analyst estimates of $2.26. Revenue for the quarter rose 3.1% year-over-year to $990 million, exceeding expectations of $961 million.
The strong performance was driven by a 4% increase in Crocs brand revenue to $762 million, fueled by solid growth in North America and accelerating momentum in China. Meanwhile, HEYDUDE brand revenue remained flat at $228 million, buoyed by direct-to-consumer sales growth.
Crocs' gross margin improved by 2.6 percentage points to 57.9%, although higher selling, general, and administrative (SG&A) expenses weighed on operating margins during the quarter.
Looking ahead to fiscal 2025, Crocs expects revenue growth of 2% to 2.5%, driven by a projected 4.5% increase in Crocs brand sales. However, the company anticipates a 7% to 9% decline in HEYDUDE brand revenue.
Notably, Crocs' adjusted earnings per share guidance for fiscal 2025 came in between $12.70 and $13.15, surpassing analyst estimates of $12.58.
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