Crocs Reports $4.1 Billion Revenue for Fiscal Year 2024, Driven by Crocs Brand Growth

Crocs, Inc. reported a revenue of $4.1 billion for the fiscal year ending December 31, 2024, marking a 3.5% increase from $4.0 billion in 2023. The growth was primarily driven by a higher average selling price (ASP) across both the Crocs and HEYDUDE brands, which contributed an increase of $156.2 million, or 3.9%. However, the HEYDUDE brand experienced a decline in revenue, decreasing by 13.2% to $824.1 million, while the Crocs brand saw an 8.8% increase in revenue, reaching $3.3 billion. The gross margin improved to 58.8%, up from 55.8% in the previous year, attributed to lower distribution costs and a favorable customer mix.

In terms of operational metrics, Crocs sold approximately 127,000 units of footwear, a 6.2% increase from the previous year, while HEYDUDE's unit sales fell by 18.3% to 26,950 units. The company also expanded its retail presence, operating 390 Crocs stores and 52 HEYDUDE stores as of December 31, 2024, compared to 349 and 14 stores, respectively, at the end of 2023. Digital sales accounted for 37.2% of total revenues, slightly down from 37.9% in 2023, indicating a continued focus on e-commerce despite a slight decline in engagement metrics.

Strategically, Crocs completed the acquisition of HEYDUDE in February 2022, which has since been integrated into its operations. The company has focused on diversifying its product offerings, particularly in sandals and other casual footwear, to attract new consumers. Marketing efforts have been intensified to enhance brand awareness, especially in key international markets such as China, India, and Japan, where international sales accounted for 44.1% of Crocs brand revenues in 2024, up from 41.0% in 2023.

The company reported a net income of $950.1 million, or $15.88 per diluted share, compared to $792.6 million, or $12.79 per diluted share, in 2023. This increase in profitability was supported by a reduction in interest expenses, which fell by 32.3% due to lower outstanding borrowings. However, selling, general, and administrative expenses rose significantly, reflecting investments in talent and marketing, which increased SG&A as a percentage of revenues to 33.8% from 29.6% in the prior year.

Looking ahead, Crocs anticipates continued challenges from global economic conditions, including inflation and geopolitical tensions, which may affect consumer spending. The company plans to maintain its focus on strategic investments in marketing and digital capabilities while exploring opportunities for further geographic expansion. With a strong liquidity position of approximately $180.5 million in cash and $824 million in available borrowings, Crocs is well-positioned to navigate these challenges and pursue growth initiatives in the coming year.