"A strong 2021 holiday season completed a very successful year for our brand. We achieved incredible results with record revenues of 2.3 billion US dollars, 67% revenue growth and industry-leading 30% operating margin. Our fourth straight year of revenue growth was fuelled by continued strong consumer demand for the Crocs brand globally. We are excited about our sustainable growth trajectory for both the Crocs and HEYDUDE brands and are confident in our plan to grow to 6 billion US dollars in revenues by 2026”, commented Andrew Rees, Chief Executive Officer.

Fourth Quarter Results

In the fourth quarter of 2021, ended on the 31^st of December, Crocs’ revenue totalled 586.6 million US dollars, up by 42.6%, or by 43.5% on a constant currency basis, as compared to the same period of the prior year. Direct-to-consumer sales, which includes retail and e-commerce, increased by 44.5%, and wholesale revenue grew by 40.3%.

Diluted earnings per share in the period corresponded to 2.57 US dollars, as compared to 2.69 US dollars in the fourth quarter of 2020, due to a lower tax benefit. Adjusted diluted earnings per share doubled to 2.15 US dollars, as compared to 1.06 US dollars in the same period of the previous year.

Full Year 2021 Results

In 2021, the company reached revenue of 2.31 billion US dollars, which reflects an increase of 66.9%, or 65.2% on a constant currency basis, on a comparable basis to 2020.

In the fiscal year 2021, direct-to-consumer revenue rose by 64.4% to 1.14 billion US dollars (as compared to 693 million US dollars in 2020) and wholesale revenue grew by 69.5%  to 1.17 billion US dollars (as compared to 692.9 million US dollars in 2020). Digital sales, which includes sales through the company websites, third party marketplaces and e-tailers, rose by 47.6% in the past year, with double-digit growth in all regions, representing 36.7% of total revenue.

The Americas region recorded revenue of 1.61 billion US dollars in 2021, which reflects an increase of 85.9% on a constant currency basis, on a comparable basis to 2020. The Asia Pacific region posted revenue growth of 21.5% on a constant currency basis last year to 350.2 million US dollars, on a comparable basis to the prior year. Revenue in the EMEA region totalled 356.2 million US dollars in 2021, up by 41.7% on a constant currency basis, on a comparable basis to 2020.

Gross margin widened 730 basis points to 61.4% in the past year, as compared to 54.1% in the previous year. Adjusted gross margin rose 700 basis points from 2020 to 61.6% in 2021.

In the twelve months ending on the 31^st of December 2021, income from operations increased by 219.0% million US dollars, totalling 683.1 million US dollars (from 214.1 million US dollars in 2020). Accordingly, operating margin rose by 1.41 basis points 29.5%. Adjusted income from operations increased by 164.8% to 695.3 million US dollars and adjusted gross margin rose 700 basis points to 61.6%, on a comparable basis to 2020.

Diluted earnings per share equalled to 11.39 US dollars in 2021, increasing by 149.8%, as compared to the prior year.  Adjusted diluted earnings per share more than doubled to 8.32 US dollars.

First Quarter 2022 Outlook

In the first quarter of fiscal 2022, Crocs is forecasting revenue of approximately 605 to 630 million US dollars, which should reflect an increase of around 31% to 37%, as compared to the first quarter of 2021 (including Heydude acquisition in February 2022).