Daily Newsletter

09 January 2024

Daily Newsletter

09 January 2024

Crocs anticipates historic $3.95bn revenue for fiscal 2023  

The company forecasts revenue growth of 3% to 5% in 2024.

Jangoulun Singsit January 09 2024

Casual footwear brand Crocs is anticipating a record-breaking revenue figure for the fiscal year 2023 (FY23) of $3.95bn - an 11% increase from the previous year.  

This growth surpasses the company's initial forecasts. It has been driven by the growth in sales of the Crocs brand, which exceeded $3bn, and revenue for HEYDUDE - purchased by Crocs in 2021 - which has reached $949m.  

The fourth quarter (Q4) of FY23 is set to witness a revenue increase of more than 1% compared to FY22, despite the company's earlier predictions of a decline.  

The Crocs brand is leading this surge in the quarter with almost 10% growth, while HEYDUDE has experienced a 19% decrease although still performing ahead of guidance. 

The company has reduced its net debt by $277m and has also repurchased $25m worth of stock in Q4. 

For 2024, the company forecasts revenue growth of 3% to 5%, with the Crocs brand growing by 4% to 6% and HEYDUDE remaining stable or experiencing a slight increase. 

Crocs also anticipates an improvement in gross margin for 2024, with plans to re-invest the gains into brand-enhancing and strategic selling, general and administrative expenses investments.  

Crocs chief executive officer Andrew Rees stated: "2023 was a strong year for Crocs Inc that culminated in a successful holiday season with market share gains for both brands. Fourth-quarter revenue is now expected to exceed our former guidance and we are raising our operating margin target for the year.  

“Our strong free cash-flow generation enabled us to pay down $277m in net debt in the quarter, bringing our full-year debt pay down to $665m.  

"We are coming into 2024 from a position of strength and are making the decision to re-invest our best-in-class margins into focused strategic investments as we continue to set ourselves up for long-term, durable growth." 

Top Themes in Retail and Apparel in 2024

While AI has been used by retailers for some time for tasks such as inventory management and forecasting, GlobalData expects its implementation to accelerate in the coming years, especially in areas such as personalized marketing, customer service, price optimization and supply chain management.

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