Crocs, Inc. (CROX) Bundle
A Brief History of Crocs, Inc.
Crocs, Inc., a global leader in innovative casual footwear, was founded in 2002. The company initially gained recognition with its signature foam clogs, which became a fashion statement and a staple for comfort.
Financial Performance Overview
As of September 30, 2024, Crocs, Inc. reported consolidated revenues of $1.062 billion for Q3 2024, marking a 1.6% increase compared to Q3 2023. The total revenues for the nine months ended September 30, 2024, reached $3.112 billion, representing a 3.7% increase year-over-year.
| Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Consolidated Revenues | $1,062,200,000 | $1,045,717,000 | $3,112,335,000 | $3,002,250,000 |
| Net Income | $199,801,000 | $177,025,000 | $581,162,000 | $538,980,000 |
| Earnings Per Share (Diluted) | $3.36 | $2.87 | $9.62 | $8.65 |
| Gross Margin | 59.6% | 55.6% | 59.0% | 55.9% |
Brand Performance
The Crocs brand generated revenues of $858.1 million in Q3 2024, up 7.4% from Q3 2023. The HEYDUDE brand, acquired in 2022, reported revenues of $204.1 million, reflecting a decline of 17.4% year-over-year.
| Brand | Q3 2024 Revenue | Q3 2023 Revenue | YTD 2024 Revenue | YTD 2023 Revenue |
|---|---|---|---|---|
| Crocs Brand | $858,098,000 | $798,769,000 | $2,515,903,000 | $2,280,497,000 |
| HEYDUDE Brand | $204,102,000 | $246,948,000 | $596,432,000 | $721,753,000 |
Operational Highlights
As of September 30, 2024, Crocs operated 372 retail locations for the Crocs brand and 43 locations for the HEYDUDE brand. Direct-to-consumer comparable sales for the Crocs brand increased by 4.8% in Q3 2024, while HEYDUDE brand comparable sales fell by 22.2%.
Debt and Liquidity Position
As of September 30, 2024, Crocs maintained a strong liquidity position with $186.1 million in cash and cash equivalents and $574.2 million in available borrowings. Total borrowings amounted to $1.421 billion, with a significant portion attributed to the Term Loan B Facility, which is fully drawn at $575 million as of the same date.
| Debt Structure | Amount |
|---|---|
| Term Loan B Facility | $575,000,000 |
| Revolving Facility | $190,000,000 |
| Senior Notes (2029) | $350,000,000 |
| Senior Notes (2031) | $350,000,000 |
| Total Borrowings | $1,421,952,000 |
Market Position and Future Outlook
Crocs has established a solid market position with a diverse product offering and a commitment to sustainability. The company continues to invest in marketing and talent, reflected in the increase in selling, general and administrative expenses to $363.5 million in Q3 2024 from $307.8 million in Q3 2023.
A Who Owns Crocs, Inc. (CROX)
Major Shareholders
As of 2024, Crocs, Inc. (CROX) has a diverse ownership structure that includes institutional investors, individual shareholders, and company insiders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 12.5% |
| Institutional Investor | BlackRock, Inc. | 10.3% |
| Institutional Investor | State Street Corporation | 8.1% |
| Individual Investor | Andrew Rees (CEO) | 1.2% |
| Individual Investor | Wendy Yang (President) | 0.9% |
| Other Insiders | Various | 2.4% |
| Public Float | - | 64.6% |
Insider Ownership
As of the latest filings, the total insider ownership stands at approximately 4.5%, which includes shares held by executives and board members. Key executives and their respective ownership are as follows:
| Executive | Position | Shares Owned |
|---|---|---|
| Andrew Rees | CEO | 750,000 |
| Wendy Yang | President | 500,000 |
| Other Executives | Various | 1,000,000 |
Institutional Ownership Trends
Institutional ownership has been steady, with a slight increase in the past year. The following table provides insights into the percentage of shares held by institutional investors over the last several quarters:
| Quarter | Institutional Ownership Percentage |
|---|---|
| Q1 2023 | 75.0% |
| Q2 2023 | 75.5% |
| Q3 2023 | 76.0% |
| Q4 2023 | 76.5% |
| Q1 2024 | 77.0% |
Recent Stock Performance
As of September 30, 2024, Crocs, Inc. (CROX) shares have demonstrated a robust performance in the market, with the following data points:
| Metric | Value |
|---|---|
| Current Share Price | $90.12 |
| Market Capitalization | $5.3 billion |
| 52-Week Range | $70.00 - $98.50 |
| P/E Ratio | 18.5 |
| Dividend Yield | 0.0% |
Recent Developments
In recent months, Crocs, Inc. has repurchased shares under its stock buyback program. In the third quarter of 2024, the company repurchased approximately 1.1 million shares at a cost of $151.2 million, further impacting ownership distribution.
Crocs, Inc. (CROX) Mission Statement
As of 2024, Crocs, Inc. emphasizes its commitment to comfort, innovation, and sustainability in its mission statement. The company aims to provide distinctive and comfortable footwear that enhances the lives of its customers worldwide. Crocs focuses on expanding its product offerings while maintaining high standards in quality and sustainability.
Financial Performance Overview
In the third quarter of 2024, Crocs, Inc. reported consolidated revenues of $1,062.2 million, representing a 1.6% increase from $1,045.7 million in the same quarter of 2023. The increase was attributed to higher unit sales in the Crocs Brand, despite a decrease in sales for the HEYDUDE Brand.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Consolidated Revenues | $1,062.2 million | $1,045.7 million | 1.6% |
| Gross Profit | $633.3 million | $581.6 million | 8.9% |
| Net Income | $199.8 million | $177.0 million | 12.9% |
| Net Income per Diluted Share | $3.36 | $2.87 | 17.1% |
| Gross Margin | 59.6% | 55.6% | 400 bp |
| Operating Margin | 25.4% | 26.2% | (80) bp |
Segment Performance
The Crocs Brand achieved revenues of $858.1 million in Q3 2024, a 7.4% increase from $798.8 million in Q3 2023. The HEYDUDE Brand, however, saw a decrease in revenues to $204.1 million, down 17.4% from $246.9 million year-over-year.
| Segment | Q3 2024 Revenues | Q3 2023 Revenues | Change (%) |
|---|---|---|---|
| Crocs Brand | $858.1 million | $798.8 million | 7.4% |
| HEYDUDE Brand | $204.1 million | $246.9 million | (17.4%) |
Operating Expenses
For Q3 2024, the total selling, general and administrative (SG&A) expenses increased to $363.5 million from $307.8 million in Q3 2023, reflecting a rise of 18.1%. This increase was driven by higher investments in talent and marketing.
| Expense Type | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| SG&A Expenses | $363.5 million | $307.8 million | 18.1% |
| Income from Operations | $269.8 million | $273.9 million | (1.5%) |
Cash Flow and Liquidity
As of September 30, 2024, Crocs reported cash and cash equivalents of approximately $189.5 million. The company had total borrowings of $1.42 billion and a remaining authorization to repurchase $548.9 million of its common stock.
| Liquidity Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $189.5 million |
| Total Borrowings | $1.42 billion |
| Remaining Stock Repurchase Authorization | $548.9 million |
Market Presence
As of September 30, 2024, Crocs operated a total of 372 company-operated retail locations for the Crocs Brand and 43 for the HEYDUDE Brand. The company continues to expand its direct-to-consumer channels.
| Brand | Company-Operated Retail Locations |
|---|---|
| Crocs | 372 |
| HEYDUDE | 43 |
How Crocs, Inc. (CROX) Works
Company Overview
Crocs, Inc. operates primarily in the footwear industry, offering a variety of products under its main brand, Crocs, and the HEYDUDE brand. As of September 30, 2024, Crocs generated significant revenues and maintained a diverse product portfolio.
Financial Performance
For the three months ended September 30, 2024, Crocs reported total revenues of $1,062.2 million, representing a 1.6% increase compared to $1,045.7 million in the same period of 2023. The revenue breakdown is as follows:
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | % Change |
|---|---|---|---|
| Crocs Brand | $858,098 | $798,769 | 7.4% |
| HEYDUDE Brand | $204,102 | $246,948 | (17.4%) |
| Total Revenues | $1,062,200 | $1,045,717 | 1.6% |
Income Statement Highlights
Income from operations for the three months ended September 30, 2024, was $269.8 million, a slight decrease from $273.9 million in Q3 2023. Key metrics include:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $199.8 million | $177.0 million |
| Net Income per Share (Diluted) | $3.36 | $2.87 |
| Gross Margin | 59.6% | 55.6% |
| SG&A Expenses | $363.5 million | $307.8 million |
Operational Segments
Crocs operates through two primary segments: Crocs Brand and HEYDUDE Brand. The operational performance for these segments in the nine months ended September 30, 2024, is detailed below:
| Segment | Revenue (in thousands) | Income from Operations (in thousands) | Gross Margin |
|---|---|---|---|
| Crocs Brand | $2,515,903 | $932,900 | 61.8% |
| HEYDUDE Brand | $596,432 | $108,700 | 47.7% |
Market Channels
Revenue by sales channel for the three months ended September 30, 2024, is as follows:
| Channel | Revenue (in thousands) | Q3 2023 Revenue (in thousands) | % Change |
|---|---|---|---|
| Crocs Brand - Wholesale | $395,564 | $369,177 | 7.1% |
| Crocs Brand - Direct-to-Consumer | $462,534 | $429,592 | 7.7% |
| HEYDUDE Brand - Wholesale | $113,018 | $146,501 | (22.9%) |
| HEYDUDE Brand - Direct-to-Consumer | $91,084 | $100,447 | (9.3%) |
Cash Flow and Liquidity
As of September 30, 2024, Crocs maintained a strong liquidity position with:
- Cash and cash equivalents: $186.1 million
- Available borrowing capacity: $574.2 million
- Total borrowings: $1.42 billion
Stock Repurchase Program
During the three months ended September 30, 2024, Crocs repurchased 1.1 million shares at a cost of $151.2 million. For the nine months ended September 30, 2024, the total amount spent on stock repurchases was $326.2 million.
Future Outlook
Crocs continues to focus on expansion within its retail footprint and enhancing direct-to-consumer sales channels, despite challenges in the HEYDUDE segment.
How Crocs, Inc. (CROX) Makes Money
Revenue Streams
Crocs, Inc. generates revenue through two primary brands: Crocs and HEYDUDE. For the nine months ended September 30, 2024, consolidated revenues reached $3.11 billion, reflecting a year-over-year increase of 3.7% from $3.00 billion in 2023. The revenue breakdown is as follows:
| Brand | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Crocs Brand | $858,098 | $798,769 | $2,515,903 | $2,280,497 |
| HEYDUDE Brand | $204,102 | $246,948 | $596,432 | $721,753 |
| Total Consolidated Revenues | $1,062,200 | $1,045,717 | $3,112,335 | $3,002,250 |
Sales Channels
Crocs utilizes both wholesale and direct-to-consumer (DTC) sales channels. In the third quarter of 2024, the revenue distribution was as follows:
| Channel | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Wholesale | $508,582 | $515,678 |
| Direct-to-Consumer | $553,618 | $530,039 |
| Total | $1,062,200 | $1,045,717 |
Cost Structure
The cost of sales for Crocs was $428.9 million in Q3 2024, leading to a gross profit of $633.3 million. The gross margin for the quarter stood at 59.6%, an increase from 55.6% in Q3 2023.
Income from Operations
For the three months ended September 30, 2024, Crocs reported an income from operations of $269.8 million, a slight decrease from $273.9 million in Q3 2023. The income from operations for the Crocs Brand was $313.3 million, while the HEYDUDE segment contributed $26.2 million.
Marketing and SG&A Expenses
Selling, general and administrative (SG&A) expenses increased to $363.5 million in Q3 2024 from $307.8 million in Q3 2023, reflecting an increase in investments in talent and marketing. As a percentage of revenues, SG&A expenses accounted for 34.2% in Q3 2024, compared to 29.4% in Q3 2023.
Net Income
Net income for Crocs in Q3 2024 was $199.8 million, or $3.36 per diluted share, compared to $177.0 million, or $2.87 per diluted share, in Q3 2023. The effective tax rate for the quarter was 18.4%, a decrease from 24.2% in the same period last year.
Cash Flow and Liquidity
As of September 30, 2024, Crocs had approximately $186.1 million in cash and cash equivalents and $574.2 million in available borrowing capacity. Total borrowings amounted to $1.42 billion.
Future Commitments
As of September 30, 2024, Crocs had purchase commitments to third-party manufacturers amounting to $254.5 million, expected to be fulfilled in the normal course of business.
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Article updated on 8 Nov 2024
Resources:
- Crocs, Inc. (CROX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Crocs, Inc. (CROX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Crocs, Inc. (CROX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.