Crocs celebrates record year and confirms growth targets

As expected, the US shoe manufacturer Crocs Inc. closed the 2023 financial year with new records in sales and earnings. In the current year, the most recent results, which the company published on Thursday, are expected to be exceeded again.

In 2023, the group generated sales of 3.96 billion US dollars (3.69 billion euros). This corresponded to an increase of 11.5 percent compared to the previous year. Adjusted for exchange rate changes, revenue increased by 12.0 percent.

The Crocs brand achieved an increase in sales of around 13 percent

The growth engine was the core Crocs brand, with sales increasing by 13.3 percent (currency-adjusted +14.0 percent) to $3.01 billion. In North America, it achieved an increase of 8.1 percent (currency-adjusted +8.3 percent) to 1.78 billion US dollars; in international business, its revenues grew by 21.7 percent (currency-adjusted +23.2 percent) to 1, $24 billion.

Consolidated sales for the Heydude label rose 6.0 percent to $949.4 million. In the previous year, however, only the proceeds after the takeover in February 2022 were included in the balance sheet. The shoe brand’s total annual sales, which also includes the period before the acquisition was completed, fell by 3.7 percent.

The group’s net profit increases by almost 47 percent

Thanks to a higher gross margin, the group was able to more than offset increased sales overhead costs. Operating profit of almost 1.04 billion US dollars exceeded the previous year’s level by 21.9 percent. Adjusted for special effects, it rose by 11.4 percent. The reported net profit increased by 46.7 percent due to lower tax burdens and reached a new record of 792.6 million US dollars (737.6 million euros).

In view of the latest developments, the company reiterated its growth targets for 2024, which were published at the beginning of January. Currency-adjusted sales growth in the range of three to five percent is therefore expected. Diluted earnings per share adjusted for special items, which were $12.03 last year, are expected to increase to $12.05 to $12.50.