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Investing.com - Crocs has reported better-than-anticipated income in the fourth quarter, as the footwear group was boosted by demand in North America and accelerating growth in China.
Shares in the company surged by more than 16% in premarket U.S. trading following the results.
Net income on an adjusted basis fell by 7% versus a year ago to $146.2 million. Analysts had projected $133.7 million, according to Bloomberg consensus estimates.
Adjusted earnings per share for the period came in at $2.52, above analysts' expectations of $2.26.
Sales also increased by 3.1% year-on-year to $989.8 million, compared with $962 million seen by Wall Street. Strength at Crocs (NASDAQ:CROX)' eponymous brand was augmented by higher-than-expected revenue at its Heydude subsidiary, which was bolstered by solid direct-to-consumer sales, the firm's CEO Andrew Rees said in a statement.
"Our fourth quarter performance exceeded expectations across all metrics led by Crocs Brand growth of 4%, as the North American business outperformed our plan and China growth accelerated from the third quarter," Rees said.
For its current quarter, Crocs said it expects revenues will be down by approximately 3.5% versus the first quarter of 2024, implying around $906.13 million, according to Investing.com calculations. This amount includes a negative impact of about $19 million from negative foreign currency effects.
When factoring in currency headwinds and the potential impact of U.S. President Donald Trump's tariff actions, adjusted operating margin for the first quarter is seen at roughly 21.5%.
Revenues in 2025 are tipped to grow by about 2% to 2.5% compared to the prior year, which would translate to a range of roughly $4.18 billion to $4.20 billion. Analysts had called for an outlook of $4.17 billion.
"For 2025, we are expecting another year of revenue growth, led by mid-single digit growth in the Crocs brand," Rees said.
Full-year adjusted operating margin is seen at 24.0%, in line with estimates.
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