Companies

Crocs reports record annual revenue

Feb 17, 2023 United States

The US-based company reported having reached a “record” revenue of 3.6 billion US dollars, up by 53.7% over 2021, driven by strong consumer demand. As a result, it anticipates a strong 2023

“Consumer demand for the Crocs and Heydude brands has been exceptional, fuelling record 2022 revenues for both brands at a combined 3.6 billion US dollars and top-tier adjusted operating margin of 28%. We anticipate another record year in 2023 with growth expected to be led by sandals and international for the Crocs Brand and increased US market penetration for Heydude”, commented Andrew Rees, Chief Executive Officer of Crocs.

Full Year 2022 Results

In 2022, the company's revenue grew by 53.7%, or 58.3% on a constant currency basis, as compared to the prior year, amounting to 3.6 billion US dollars. In the fourth quarter alone, Crocs' revenue totalled 945.2 million US dollars, reflecting growth of 61.1%, or 64.8% on a constant currency basis, on a comparable basis to the same quarter of 2021.

Breaking the results by brand. Last year, the Crocs brand registered a revenue increase of 14.9%, or 19.4% on a constant currency basis, year-over-year, which generated 2.66 billion US dollars. Its wholesale revenue was up by 17.3%, or 23.4% on a constant currency, while the brand's DTC revenue rose by 12.5%, or 15.3% on a constant currency, as compared to the previous year.

Furthermore, in 2022, the Crocs brand revenue rose by 6.0% on a constant currency basis in North America, totalling 1.64 million US dollars, by 47.0% on a constant currency basis in the Asia Pacific region, reaching 473.9 million US dollars, and by 46.8% on a constant currency basis in the Europe, Middle East, Africa, and Latin America region (EMEALA), amounting to 540.5 million US dollars, on a comparable basis to 2021.

The Heydude brand, in turn, posted 895.5 million US dollars in revenue in the period following the closing of the acquisition on the 17th of February 2022, with wholesale revenue reaching 574.1 million US dollars and DTC revenue adding 321.7 million US dollars to the total revenue.

Crocs' 2022 gross margin was 52.3%, which reflects a decrease of 910 basis points, on a comparable basis to 61.4% last year, and the adjusted gross margin corresponded to 54.4%, dropping 720 basis points from last year. The company noted that half of the decline in the adjusted gross margin is due to the addition of the Heydude brand.

The US-based company also reported that diluted earnings per share decreased by 23.5% to 8.71 US dollars, thanks to a lower tax benefit somewhat offset by higher net income, while adjusted earnings per share rose by 31.3% to 10.92 US dollars, year-over-year.

2023 Outlook

Concerning the full year 2023, Crocs is expecting revenue growth of 10% to 13% over 2021, resulting in a total of approximately 3.9 billion US dollars to 4.0 billion US dollars at current currency rates, and adjusted diluted earnings per share of 11.00 US dollars to 11.31 US dollars.

As for the first quarter of 2023, the company is anticipating a revenue increase of approximately 27% to 30%, as compared to the first quarter of 2022, reaching 660.1 million US dollars, and diluted earnings per share of 2.06 US dollars to 2.19 US dollars.

Image Credits: womanandhomemagazine.co.za

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