Crocs (NASDAQ:CROX) shares ticked nearly 7% higher today after the casual footwear provider delivered a better-than-anticipated set of numbers for the fourth quarter. Revenue inched up by 1.6% year-over-year to $960.1 million, outpacing expectations by $1.7 million. Further, EPS of $2.58 exceeded estimates by $0.21.
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While DTC (direct-to-consumer) revenue increased by 6.8%, wholesale revenue declined by 4.6%. The Crocs brand continued to perform with a 10% rise in revenue. In contrast, HEYDUDE’s revenue declined by 18.5%. The company’s adjusted gross margin expanded by 240 basis points to 55.7% during this period.
Additionally, Crocs lowered its net leverage to 1.3x by paying down $277 million worth of debt. Its total borrowings at the end of December 2023 stood at $1.66 billion.
For Fiscal Year 2024, Crocs expects revenue growth in the range of 3% to 5%. This includes a 4% to 6% growth in the Crocs brand and a flat to slight increase for the HEYDUDE brand. Adjusted EPS for the year is anticipated between $12.05 and $12.50. For the upcoming quarter, Crocs foresees EPS in the range of $2.15 to $2.25. Revenue growth for the quarter is seen landing between -1.5% and 0.5%.
What Is the Price Target for Crocs?
Overall, the Street has a Strong Buy consensus rating on Crocs, and the average CROX price target of $131.10 points to a nearly 21% potential upside in the company. That’s on top of a nearly 16% year-to-date gain in the company’s share price.
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