Crocs (NASDAQ:CROX) surged more than 18% intra-day today after delivering better-than-expected fourth-quarter earnings, driven by strong demand in North America and accelerating growth in China.
For the quarter, adjusted net income declined 7% year-over-year to $146.2 million, but still topped analyst expectations of $133.7 million. Earnings per share came in at $2.52, comfortably surpassing Wall Street’s forecast of $2.26.
Revenue grew 3.1% year-over-year to $989.8 million, beating analysts’ projections of $962 million. Growth was driven by a 4% increase in the Crocs brand, while subsidiary Heydude outperformed expectations, fueled by strong direct-to-consumer sales.
Despite the strong Q4 performance, Crocs issued a cautious outlook for Q1 2025, expecting revenues to decline by approximately 3.5%, implying sales of around $906.13 million. The company cited a $19 million headwind from unfavorable foreign exchange movements and potential impacts from U.S. trade policies.
For full-year 2025, Crocs projects revenue growth of 2% to 2.5%, translating to a range of $4.18 billion to $4.20 billion, slightly above the $4.17 billion consensus estimate.