Digital sales advanced 80% year over year in the fourth quarter, marking significant growth from the prior-year quarter’s 41%. Management expects the HEYDUDE brand to attain $1 billion in revenues in 2023.Ĭrocs has been making significant progress in expanding digital and omnichannel capabilities. For 2023, revenues related to the HEYDUDE buyout are likely to grow in the mid-20% range on a reported basis. Notably, the HEYDUDE brand’s fourth-quarter revenues advanced 37% year over year to $279.2 million. The acquisition is likely to diversify Crocs’ brand portfolio and add to its digital penetration, as HEYDUDE already has a strong online presence. HEYDUDE’s consumer-insight-driven casual, comfortable and lightweight products perfectly fit CROX’s existing portfolio. This is the second high-growth and highly profitable brand added to the Crocs portfolio. Its previously acquired HEYDUDE, which sells lightweight, casual shoes and sandals for men, women and children, bodes well. That said, let’s delve into the factors that make Crocs a promising bet. This Zacks Rank #2 (Buy) stock has rallied 25.1% compared with the industry’s growth of 7.1% and against the sector’s decline of 1.5%. Revenues advanced 61.1% (or 64.8% on a constant-currency basis) year over year to $945.2 million in the reported quarter, driven by growth across all regions and channels.Ĭonsequently, shares of this Zacks Rank #2 (Buy) company have outperformed the industry and the overall Consumer Discretionary sector in the past month. This led to the robust fourth-quarter 2022 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate for the eleventh straight quarter in the fourth quarter.Īdjusted earnings were $2.65 per share, rising 23.3% from $2.15 in the year-ago period. Crocs ( CROX Quick Quote CROX - Free Report) appears to be a lucrative pick for investors as the company boasts solid consumer demand in the Crocs and HEYDUDE brands, as well as strength in clogs, sandals and Jibbitz categories.

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