Crocs stock kicks off as revenue gains attributed to HEYDUDE brand

Yahoo Finance Live's Dave Briggs, Seana Smith, and Josh Schafer break down why Crocs stock is moving higher on Thursday afternoon.

Video Transcript

JOSH SCHAFER: My play today is Crocs. Shares are in the green, hitting a new 52-week high after the company's fourth quarter earnings release beat Wall Street estimates. The company also expects to earn in the range of $11 to $11.31 per share in 2023. That coming in above the Street estimate of $10.86. CEO Andrew Rees saying Hey Dude is exceeding expectations a year after Crocs purchased the brand. The brand nearly cleared a billion dollars in revenue last year. And Crocs is expecting the brand to grow at a mid 20% rate for revenue, Dave.

So, again, Hey Dude kind of, in some ways, the story of the earnings release again. You said you were like, hey, dude. I keep seeing it all over the earnings release. But it really was everywhere. And it's sort of that big growth arm now for Crocs. It's been exciting to see. I love the video behind us. I love the shoes. I need to get a pair. I've worn my friend's. I think they're exciting, and they're pretty cheap.

SEANA SMITH: You've worn your friend's shoes?

JOSH SCHAFER: They're pretty cheap. I've tried them on.

SEANA SMITH: All right.

DAVE BRIGGS: Not like the whole day.

SEANA SMITH: Yeah, I was going to say--

DAVE BRIGGS: He just tried them on.

SEANA SMITH: [INAUDIBLE]

JOSH SCHAFER: We were talking about if we have them yet. And I said I don't have them yet, but.

DAVE BRIGGS: It's interesting that promo, which obviously aims at a skater type, my assumption was that it's not, generally speaking, that tailored. But yes, I want to try them as well. And you mentioned the earnings release. And I'm a giant loser. We all acknowledged that. I actually counted the references from the CEO to Hey Dude in the earnings call, and he mentioned Hey Dude 13 times. He only mentioned Crocs 18 times. So that tells you just a little bit about where they are in their priorities.

But what gives you a better sense of it is the CEO also said it gives them an addressable market of $160 billion versus $40 billion prior to the acquisition. Let me say that again. A total addressable market of $160 billion. Prior to buying Hey Dude, it was $40 billion. That is a massive game changing acquisition for Crocs.