Due to unexpectedly strong demand in the Christmas business, the US shoe supplier Crocs Inc. revised its forecasts slightly upwards on Monday.
In the fourth quarter of the 2023 financial year, group sales were around one percent above the previous year’s level, the company said on Monday in advance of a conference with analysts and investors.
In 2023, annual sales are expected to increase by eleven percent
Accordingly, the revenues of the core brand Crocs rose by almost ten percent, while the Heydude label suffered a decline in sales of 19 percent. Overall, expectations were exceeded, emphasized the shoe supplier. Management had previously assumed that group sales would shrink by one to four percent in the final quarter.
In view of the positive development, the company now expects an increase in sales of eleven percent for the full year 2023. Previously the target range was ten to eleven percent. The growth engine was the Crocs brand, whose revenues rose by 13 percent to more than three billion US dollars (2.7 billion euros), according to a statement. The group also expects that the operating margin adjusted for special effects will be more than 27 percent and thus exceed the corresponding forecast.
The company is targeting further growth for the current year
The shoe supplier also announced its first goals for the new 2024 financial year. According to this, group sales should increase by three to five percent. At Crocs, an increase of four to six percent is expected, while at the recently weak Heydude label, revenues are expected to remain stable or even increase slightly.
The group also expects an improvement in the gross margin compared to 2023. The company explained that the plan is to use the resulting additional income for “strategic investments”. The operating margin adjusted for special effects is therefore expected to reach around 25 percent in the current year.