By Denny Jacob
Crocs posted higher-than-expected results in its fourth quarter led in part by stability at its Heydude brand that has struggled recently, bolstering confidence that turnaround efforts are panning out.
Shares surged 18% to $105.22 in premarket trading. The stock is down 27% over the last year.
The clog and sandal company posted net income of $368.9 million, or $6.36 a share, up from $253.6 million, or $4.16 a share, a year earlier.
Stripping out certain one-time items, earnings were $2.52 a share. Analysts polled by FactSet had expected $2.26 a share.
Revenue rose to $989.8 million from $960.1 million. Analysts polled by FactSet had expected $961.6 million.
Sales of the Crocs brand rose 4% to $762 million in the quarter. Heydude revenue, meanwhile, was flat at $228 million; the company previously forecast Heydude sales to decline as much as 6% in the quarter.
Chief Executive Andrew Rees said Crocs is pleased with early signs of progress at its Heydude brand and is taking a prudent approach to 2025 guidance for the brand.
Crocs said it expects 2025 to be another year of positive revenue growth for the company, led by its namesake brand.
For the first quarter, the Broomfield, Colo., company expects revenue to be down about 3.5% from a year earlier, while adjusted earnings per-share are expected to be between $2.38 and $2.52. Analysts polled by FactSet had expected $2.65 a share in adjusted earnings.
The Crocs brand is expected to be flat to down 1% in the current quarter from the prior-year period, while Heydude is expected to be down 14% to 16% during the same period.
For 2025, Crocs expects revenue growth between 2% and 2.5%, while adjusted earnings per-share are forecast to be between $12.70 and $13.15. Analysts polled by FactSet expect $12.58 a share in adjusted earnings.
The Crocs brand is expected to grow by 4.5% in the year compared to 2024, while Heydude is expected to decline 7% to 9% during the same period.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
February 13, 2025 07:43 ET (12:43 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.