Crocs Inc. delivered another record year with revenues of nearly $4 billion in fiscal 2023, capped off by a strong fourth quarter that exceeded expectations.
According to the Broomfield, Colo.-based footwear company, net revenues for the fiscal year increased 11.5 percent to $3.96 billion, up from $3.55 billion in 2022. Net income for the year was $792.6 million, up from $540.2 million in 2022.
By brand, Crocs saw revenues rose 13.3 percent to $3 billion in 2023, driven by the label’s international business, which saw revenues jump 21.7 percent to $1.2 billion for the year.
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North America revenues sill held strong in 2023 with an increase of 8.1 percent, while Crocs’ wholesale revenues increased 8.4 percent, and direct-to-consumer revenues rose 18.5 percent in 2023.
At Hey Dude, revenues increased 6 percent to $949 million in 2023, while wholesale revenues decreased 1.3 percent and DTC revenues increased 18.9 percent for the year.
“Crocs brand grew across all regions and channels, highlighting the power of our strategy and disciplined execution,” Andrew Rees, chief executive officer of Crocs Inc., said in a statement. “We made good progress in the fourth quarter towards returning our Hey Dude brand to a pull-market position resulting in improved gross margins and healthy inventory levels exiting the year.”
As for the company’s fourth quarter performance, Crocs reported net revenues increased 1.6 percent to $960 million, up from $945 million the same time last year. Net income in Q4 was $253.6 million, up from $137.7 million the same time last year. Company-wide, direct-to-consumer revenues grew 6.8 percent while wholesale revenues contracted 4.6 percent in the period.
By brand, Crocs revenues were $732 million, an increase of 10 percent from the same period last year. Hey Dude revenues in Q4 were $228 million, a decrease of 18.5 percent from the same period last year.
Looking ahead, the company is set to have mixed results the first quarter of 2024, with revenues in the period expected to be down 1.5 percent to up 0.5 percent compared to first quarter 2023. The Crocs brand is expected to grow 6 percent to 8 percent in Q1 compared to first quarter 2023, while the Hey Dude brand is expected to contract 20 percent to 23 percent compared to the same time last year.
As for the company’s full fiscal 2024 outlook, Crocs Inc expects revenue growth of 3 percent to 5 percent compared to 2023, with revenues at the Crocs brand expected to grow 4 percent to 6 percent, and revenues at the Hey Dude brand expected to be flat to slightly up.
“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,” added Rees.
