Crocs (NASDAQ:CROX) shares are rallying premarket after saying it now expects record 2023 revenues, above the analyst consensus expectation.
The company sees 2023 revenues of approximately $3.95 billion, representing over 11% growth compared to 2023. The consensus estimate for CROX's FY23 revenue is $$3.93 billion. That number is also at the high end of the company's guidance of 10% to 11% growth.
At the time of writing, Crocs shares are up more than 7% premarket, trading above the $93 mark. They closed Friday's session down more than 3% at $86.46.
The company's revenue performance during the year was boosted by its Crocs Brand growing over 13%, surpassing the $3 billion mark, and HEYDUDE revenues of approximately $949 million.
The full year 2023 non-GAAP operating margin is now seen at above 27%.
"2023 was a strong year for Crocs, Inc. that culminated in a successful holiday season with market share gains for both brands," said Andrew Rees, Crocs' Chief Executive Officer.
For the fourth quarter, the company expects revenues to grow over 1% compared to 2022, above its guidance for a decline of -4% to -1%. The Crocs Brand is seen growing almost 10%, with HEYDUDE down -19% and ahead of guidance.
For 2024, the footwear business sees revenue growing between 3% and 5% compared to 2023, comprised of 4% to 6% growth for the Crocs brand and flat to slightly up for HEYDUDE Brand.
Gross margin is expected to improve over 2023, and Crocs plans to reinvest the dollars into brand accretive and strategic SG&A investments, resulting in 2024 non-GAAP operating margins of approximately 25%.
"Our strong free-cash flow generation enabled us to pay down $277 million in net debt in the quarter, bringing our full-year debt pay down to $665 million," added Rees. "We are coming into 2024 from a position of strength and are making the decision to reinvest our best-in-class margins into focused strategic investments as we continue to set ourselves up for long-term, durable growth."