- Crocs’ 4Q adjusted earnings per share (EPS) came in at $2.52, beating the estimate of $2.26, although slightly down from $2.58 year-on-year (y/y).
- The company’s standard EPS increased significantly to $6.36 from $4.16 y/y.
- Revenue reached $989.8 million, a 3.1% increase y/y, surpassing the expected $962 million.
- Adjusted net income was $146.2 million, a 7% decline y/y, but exceeded the estimate of $133.7 million.
- Adjusted gross margin improved to 57.9% from 55.7% y/y, beating the estimate of 56.3%.
- Adjusted operating margin was 20.2%, down from 24.1% y/y, but above the projected 19.4%.
- Adjusted operating income fell by 13% y/y to $199.9 million but still exceeded the estimate of $187 million.
- The Crocs brand had a 4% growth, with North American and Chinese markets performing strongly.
- The company anticipates maintaining an operating margin of about 24% for 2025 and beyond.
- For 2025, Crocs is expecting revenue growth driven by mid-single digit growth in the Crocs brand.
- Shares rose by 8.1% in pre-market trading, reaching $96.00 with 5,822 shares traded.
- The company has received 10 buy ratings, 7 hold ratings, and 0 sell ratings from analysts.
Crocs Inc on Smartkarma
Analysts on Smartkarma have been closely covering Crocs Inc., providing insightful research for investors. Baptista Research‘s analysis of Crocs Inc.’s third-quarter performance for fiscal year 2024 highlighted a mix of strengths and weaknesses in operational performance. The company saw a modest 2% increase in consolidated revenues, with direct-to-consumer channels showing strong growth at 5%, indicating robust consumer engagement efforts.
Furthermore, Yet Another Value Podcast featured Mitchell Scott discussing Crocs’ success and potential. The stock has seen a 30-40% increase in value, with discussions focusing on whether Crocs is a passing fad or a sustainable business. Scott emphasized the brand’s significance, innovation, and growth strategies, including the importance of ‘jibbets,’ showcasing Crocs’ ability to resonate with consumers and drive further growth.
A look at Crocs Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Crocs Inc has a mixed outlook for its long-term performance. With a solid Growth score of 4, the company is positioned well for expansion and future profitability. However, its Value score of 3 indicates that it may not be undervalued in the market, which could impact potential returns for investors. In terms of Resilience and Momentum, Crocs Inc scores a 2, reflecting moderate performance in these areas. The lowest score of 1 in the Dividend category suggests that the company may not be prioritizing dividend payouts to shareholders.
Crocs, Inc. designs and manufactures shoes that are soft, lightweight, and resistant to slips and odors using closed-cell resin material. The company offers a range of shoes for men, women, and children, marketing them to various retail chains. Despite the mixed Smart Scores, Crocs Inc‘s focus on growth and innovative shoe designs could drive long-term success and market presence in the footwear industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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