Why Footwear Giant Crocs Shares Are Shooting Higher Today

Footwear giant Crocs, Inc 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.

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