US-based footwear company Crocs, Inc, has reported nearly $4 billion in revenues in fiscal 2023 (FY23), marking an 11.5 per cent increase from the previous year, or 12 per cent on a constant currency basis. The company's gross margin saw a rise to 55.8 per cent, up 350 basis points from 52.3 per cent in the previous year. Adjustments for gross margin put it at 56.5 per cent, reflecting a 210-basis point increase.

Operating expenses, however, saw a rise, with selling, general and administrative expenses climbing to $1,173 million from $1,010 million last year, making up 29.6 per cent of revenues, a 120-basis point increase. Despite this, income from operations surged by 21.9 per cent to $1,037 million, with operating margin up by 230 basis points to 26.2 per cent.

Diluted earnings per share (EPS) experienced a significant boost, increasing 46.8 per cent to $12.79 per share, while adjusted diluted EPS grew by 10.2 per cent to $12.03, the company said in a media release.

The Crocs brand itself saw revenues climb by 13.3 per cent to $3.0 billion, with direct-to-consumer (DTC) revenues rising by an impressive 18.5 per cent. The brand's performance was particularly strong in North America and internationally, with revenues up by 8.1 per cent and 21.7 per cent, respectively.

On the other hand, the Heydude brand, acquired in February 2022, experienced a more modest revenue increase of 6 per cent to $949 million, with a slight contraction in wholesale revenues but an 18.9 per cent increase in DTC revenues. Inventories decreased 18.3 per cent to $385 million as of December 31, 2023 compared to $472 million as of December 31, 2022.

For the fourth quarter (Q4) of FY23, Crocs reported revenues of $960 million, a 1.6 per cent increase year-over-year. Gross margin improved to 55.3 per cent, and despite a rise in selling, general and administrative expenses, the company managed a significant EPS of $4.16, thanks to an increased tax benefit.

"We delivered a record year for Crocs capped off by a strong fourth quarter that exceeded expectations across all metrics. Revenues of nearly $4 billion grew over 11 per cent underpinned by industry-leading operating margins and double-digit earnings per share growth. Crocs brand grew across all regions and channels, highlighting the power of our strategy and disciplined execution. We made good progress in the fourth quarter towards returning our Heydude brand to a pull-market position resulting in improved gross margins and healthy inventory levels exiting the year," said Andrew Rees, chief executive officer.

Fibre2Fashion News Desk (DP)

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