Crocs — Feb 13, 2025 release

We are pleased by the early signs of progress we made for HEYDUDE during the fourth quarter and are taking a prudent approach to how we shape 2025 guidance for HEYDUDE as we focus on reigniting the brand.” Susan Healy, Chief Financial Officer added, “In 2024, we stepped up our investment in our brands while driving industry leading margins. We expect operating margin to be approximately 24.0% for 2025, and beyond this year, we are committed to maintaining an annual operating margin at or above this level. We believe that our continued investments in our brands and exceptional cash flow generation will support Crocs, Inc. for sustained growth and value creation over the long-term.” Amounts referred to as “Adjusted” or “Non-GAAP” are Non-GAAP measures and include adjustments that are described under the heading “Reconciliation of GAAP Measures to Non-GAAP Measures.” A reconciliation of these amounts to their GAAP counterparts are contained in the schedules below. Fourth Quarter 2024 Operating Results (Compared to the Same Period Last Year) • Consolidated revenues were $990 million, an increase of 3.1%, or 3.8% on a constant currency basis. Direct-to-consumer (“DTC”) revenues grew 5.5%, or 6.1% on a constant currency basis. Wholesale reven ues contracted 0.2%, or grew 0.7% on a constant currency basis. • Gross margin was 57.9% compared to 55.3%. Adjusted gross margin improved 220 basis points to 57.9% compared to 55.7%. 1 • Selling, general, and administrative expenses (“SG&A”) of $373 million increased 16.1% from $321 million, and represented 37.7% of revenues compared to 33.5%. Adjusted SG&A of $373 million increased 23.0% from $303 million, and represented 37.7% of revenues compar