Remember when Crocs were just a quirky, comfortable shoe? Well, the company behind them has come a long way. Last year, Crocs, Inc. hit a major milestone, proving the staying power and growing popularity of its brands. But just how big was 2024 for the company? Its latest financial results are in, revealing record-breaking revenue and impressive growth. Keep reading to learn more about these financial achievements and what lies ahead for the footwear manufacturer.
Crocs Sees Record Sales in 2024, Despite Rising Expenses
On February 13th, Crocs, Inc. shared its financial results for the whole year of 2024.
The company raked in $4.1 billion in sales, which is about a 3.5% increase compared to the previous year. If you take out the effects of currency exchange, the growth was even a bit higher, at 4.3%. Sales directly to customers (like through their website or stores) jumped by over 7%, while sales to other stores were basically flat.
Crocs, Inc. made more money for every pair of footwear they sold. Its gross margin (the difference between the cost of making the shoes and the price they sold them for) went up from about 55.8% to 58.8%. This means the company was more efficient at making and selling their products.
If you divide the company’s total profit by the number of shares of stock, each share earned $15.88. This is a big jump, 24.2%, from the previous year. If you exclude some one-time items, earnings per share were still up by a healthy 9.5% to $13.17.
However, the company’s selling, general, and administrative expenses (basically, the costs of running the business, like marketing, salaries, and office space) increased by about 18%, reaching $1.39 billion.
Even though sales went up, increased expenses slightly impacted the company’s overall profit. Crocs, Inc. profit from operations was $1.02 billion, a slight decrease of 1% compared to the previous year.
Also worth noting, Crocs, Inc. paid back $323 million in debt. It also bought back some of its own company stock (about 4.3 million shares) for $551 million, which can sometimes boost the value of remaining shares. The company still has $324 million available to buy back more shares in the future.
“We delivered another record year for Crocs, Inc. highlighted by revenue growth of 4% to $4.1 billion and adjusted earnings-per-share growth of 9%. We generated exceptional operating cash flow of approximately $990 million, which enabled us to return value to shareholders through more than $550 million in share repurchases, while fortifying our balance sheet through the pay down of approximately $320 million of debt,” said Andrew Rees, Chief Executive Officer of Crocs, Inc.
Crocs Expects Continued Growth in 2025
Rees said Crocs, Inc.’s fourth quarter performance in 2024 was better than expected, with the Crocs brand growing 4%, thanks to strong sales in North America and a rebound in China. Meanwhile, the HEYDUDE brand’s sales were about the same as last year, which was also better than the company predicted, especially because sales directly to consumers started growing again.
Looking ahead to 2025, Crocs, Inc. expects sales to keep growing, with the Crocs brand leading the way with mid-single-digit growth (somewhere between 5% and 9%). Crocs, Inc. is happy with the early progress it has made with HEYDUDE and is being careful with its predictions for that brand as it works to make it even more popular again.
Crocs, Inc. CFO Susan Healy confirmed that they invested more in their brands in 2024 while still maintaining excellent profit margins. The company expects its profit margin (operating margin) to be around 24% in 2025 and is committed to keeping it at or above that level in the years to come. Crocs, Inc. believes that its continued investments in its brands and strong cash flow will support its growth and make the company more valuable over the long term.