Crocs Inc (NASDAQ: CROX) on Wednesday reported market-beating results for its fiscal fourth quarter. Shares are still down about 5.0% on weaker-than-expected guidance for the future.
Highlights of the Q4 earnings report
Net income printed at $154.9 million versus $183.3 million last year.Crocs earned $2.15 per share (adjusted) beating expectations for $1.98.At $586.6 million, revenue jumped about 43% YoY to top the FactSet consensus of $585 million.Full-year revenue hit a record $2.31 billion – an annualised growth of 67%, as per the earnings press release.Revenue in Q1 expected between $605 million to $630 million; the top end missing FactSet consensus by $14.4 million.Full-year revenue estimated to jump over 20%, compared to analysts at $48.1%.Record profitability and best in the industry EBIT margins were the highlight of the earnings report.
CEO Rees’ remarks on CNBC’s ‘Power Lunch’
According to CEO Andrew Rees, Crocs Inc will see its revenue more than double to $6.0 billion by 2026. On CNBC’s “Power Lunch”, he said:
We can more than double the Crocs brand to $5.0 billion on a global basis by 2026. That growth will come from digital, overseas, and our investments in sandal category. To add to it, Hey Dude, which we bought last year will bring in $1.0 billion. We’re super confident in what we’re offering to consumers.
Rees attributed the lower-than-expected guidance to the ongoing supply constraints. Crocs’ sandal business grew 30% in the recently concluded year and Rees expects this segment to grow by four times by 2026.
It’s a very strong growth category for us. What’s appealing about the sandals business is that the overall market is much bigger than the clogs market. It’s seasonal as well. A lot of people buy sandals for a season and then buy another pair next year. So, it’s a replenishable market.
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