$CROX (+5,21%) | Crocs Q3'24 Earnings Highlights

🔹 Revenue: $1.06B (Est. $1.05B) 🟢; UP 2% YoY

🔹 Adj EPS: $3.60 (Est. $3.10) 🟢; UP 11% YoY

🔹 Inventory: $367M (down from $390M YoY)

FY24 Guidance:

🔹 Revenue Growth: ~3% YoY (Lower end of prior 3%-5% range) 🔴

🔹 HEYDUDE Revenue: DOWN 14.5% (Prior: DOWN 10%-8%) 🔴

🔹 Crocs Brand Growth: ~8% (Prior: 7%-9%)

🔹 Adjusted EPS: $12.82-$12.90 (Est. $12.85) 🟡

🔹 Adjusted Operating Margin: >25%

🔹 Capital Expenditures: $90M-$100M (Lowered from $100M-$110M)

Q4'24 Guidance:

🔹 Adjusted EPS: $2.20-$2.28 (Est. $2.73) 🔴

🔹 Revenue: Flat to slightly up YoY

🔹 Crocs Brand Growth: ~2%

🔹 HEYDUDE Revenue: DOWN 6%-4%

Segment Performance:

Crocs Brand

🔹 Revenue: $858M; UP 7.4% YoY

🔸 DTC Revenue: $463M; UP 7.7%

🔸 Wholesale Revenue: $396M; UP 7.1%

🔸 International Revenue: $367M; UP 15.5% YoY

HEYDUDE Brand

🔹 Revenue: $204M; DOWN 17.4% YoY

🔸 DTC Revenue: $91M; DOWN 9.3%

🔸 Wholesale Revenue: $113M; DOWN 22.9%

Key Commentary:

CEO Andrew Rees stated:

🔸 “Our Crocs brand showed balanced growth, with strong gains internationally and in direct-to-consumer channels.”

🔸 “HEYDUDE's turnaround is taking longer than expected, given current market conditions and brand challenges, but we are confident in its long-term potential.”

Balance Sheet and Cash Flow:

🔹 Cash and Cash Equivalents: $186M (UP from $127M YoY)

🔹 Debt Repayment: $110M

🔹 Share Repurchase: 1.1M shares repurchased for $151M; $549M remaining authorization