Crocs, Inc. (NASDAQ:CROX) shares rose over 20% after it revised its fourth-quarter and full-year 2023 guidance higher due to strong holiday sales.
The maker of innovative casual footwear for women, men, and children said it expects to report 1% year-over-year growth in 4Q revenue, above its previous guidance for a decline of between 1% and 4%. Its Crocs Brand grew revenue by almost 10% while revenue at HEYDUDE declined 19%.
For full-year 2023, it now expects revenues of roughly $3.95 billion, an 11% improvement over 2022 and at the top end of its previous guidance. Revenue at its Croc brand is expected to surpass the $3 billion mark, showing 13% growth, with HEYDUD revenue of about $949 million.
It reduced its net debt and repurchased $25 million in stock in the fourth quarter.
"2023 was a strong year for Crocs, Inc. (NASDAQ:CROX) that culminated in a successful holiday season with market share gains for both brands,” CEO Andrew Rees commented in a statement.
“Our strong free-cash-flow generation enabled us to pay down $277 million in net debt in the quarter, bringing our full-year debt pay down to $665 million.”
For 2024, the company has guided for revenue growth of 3% to 5% compared to 2023, with Crocs growing revenue by 4% to 6% and flat to slightly higher revenue for HEYDUDE.
"We are coming into 2024 from a position of strength and are making the decision to reinvest our best-in-class margins into focused strategic investments as we continue to set ourselves up for long-term, durable growth,” Rees added.
The company’s shares traded $17.60 higher at $104.06 by 1pm in New York.