BROOMFIELD, Colo. - Crocs , Inc. (NASDAQ: NASDAQ:CROX) announced a robust first quarter with record revenues and significant earnings growth. Despite the positive earnings report, Crocs' stock experienced a 5% decline.
For the first quarter of 2024, the company reported revenues of $939 million, marking a 6% increase from the previous year and surpassing analyst expectations of $883.54 million. Adjusted earnings per share (EPS) also exceeded forecasts at $3.02, which was $0.78 higher than the estimated $2.24.
The company's Crocs Brand led the performance with a 14.6% revenue increase, driven by strong consumer demand in North America and international markets. The growth in direct-to-consumer revenues, which rose by 11.8%, contributed significantly to the overall performance. However, the HEYDUDE Brand experienced a downturn, with revenues declining by 17.2%.
The company's CEO, Andrew Rees, attributed the successful quarter to the strength of the Crocs Brand and expressed confidence in the long-term potential of the HEYDUDE Brand, despite reducing revenue expectations for the remainder of the year.
Looking ahead, Crocs raised its full-year adjusted EPS outlook, citing the Crocs Brand's momentum. For the second quarter of 2024, the company anticipates revenue growth between 1% to 3% compared to the same period last year, with the Crocs Brand expected to grow by 7% to 9%. In contrast, the HEYDUDE Brand is projected to contract by 17% to 19%. The adjusted operating margin is forecasted to be around 26.5%, with adjusted EPS between $3.40 and $3.55.
For the full year 2024, Crocs expects revenue growth of 3% to 5% over 2023, with the Crocs Brand revenues growing by approximately 7% to 9%. Conversely, the HEYDUDE Brand is expected to contract by 8% to 10%. The adjusted operating margin is estimated to be about 25%, with adjusted EPS projected in the range of $12.25 to $12.73.
The company's financial health remains strong, with cash and cash equivalents at $159 million, up from $126 million the previous year, and total borrowings reduced to $1,727 million from $2,283 million.
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