Why Footwear Giant Crocs Shares Are Shooting Higher Today

Footwear giant Crocs, Inc (NASDAQ: CROX) shares are trading after an updated Q4, 2023 outlook and solid preliminary 2024 guidance.

The company expects FY23 revenue of approximately $3.95 billion (consensus $3.93 billion), a growth of over 11% compared to 2022 and slightly above its guidance of 10%-11% growth.

Crocs Brand growth is expected to be over 13%, surpassing the $3 billion mark and HEYDUDE revenues of about $949 million.

The company sees Q4 FY23 revenue to grow 1% year-on-year, above its previous guidance of a decline of (4%) - (1%).

Crocs Brand is expected to increase about 10% in Q4 and HEYDUDE down (19%) and ahead of guidance.

CROX expects FY23 non-GAAP operating margin to now be in excess of 27%.

The company paid down approximately $277 million of net debt and repurchased $25 million in stock in the fourth quarter.

For FY24, the company expects preliminary growth of 3% - 5%, with 4% - 6% growth for the Crocs brand and flat to slightly up for HEYDUDE Brand.

In tandem with the press release, CROX announced on Form 8-K its plan to change segment reporting from four reportable segments to two with the filing of 2023 Form 10-K. 

Price Action: CROX shares are trading higher by 9.65% at $94.80 in premarket on the last check Monday.

Photo via Company