Shares of casual footwear provider Crocs (NASDAQ:CROX) surged nearly 9% in the early session today after its updated financial outlook impressed investors.
The company expects revenue of $3.95 billion, a record figure, for 2023. This implies a growth of 11% in its top line. Further, Crocs experienced market share gains for its brands due to a robust holiday season performance. Revenue growth for the fourth quarter is pegged at over 1% versus the prior outlook of a -4% to -1% decline.
Further, the Crocs brand grew by over 13% to exceed $3 billion in 2023, while HEYDUDE revenues for the year came in at nearly $949 million. Additionally, the company pared down its debt by $277 million and bought back shares worth $25 million in the fourth quarter.
Looking ahead to Fiscal Year 2024, the company expects 3% to 5% growth in its top line. This includes a 4% to 6% growth in the Crocs brand and a flat to slight gain for the HEYDUDE brand. The company is also expected to present at the ICR Conference today at 9:00 am ET.
What is a Fair Price for CROX Stock?
Today’s price gain comes after a nearly 21% drop in the company’s share price over the past year. Overall, the Street has a Strong Buy consensus rating on Crocs, and the average CROX price target of $123.64 implies a substantial 43% potential upside in the stock.
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