Companies

Crocs with another period of record revenue

Oct 25, 2021 United States

The US-based brand of casual footwear announced record third quarter revenue of 625.9 million US dollars. Revenue growth was strong in all regions, despite supply chain disruptions

"Our third quarter was exceptional, underscored by 73% revenue growth over 2020 and industry-leading operating margin of 32%. Globally, our teams are managing through the supply chain disruptions to mitigate the impact on our business. Despite the temporary disruptions, we expect 2022 revenues to grow over 20% from 2021 fuelled by the strength of our brand and consumer demand globally”, commented Andrew Rees, Chief Executive Officer.

The company has noted that its third quarter performance “was impacted by Vietnamese factory closures and widespread disruption in the global supply chain”. Crocs decided, then, to “shift production, improve factory throughput, leverage air freight, and strategically allocate units”, remaining confident in its “ability to deliver upon our short- and long-term goals”.

Third Quarter Results

In the third quarter of 2021, Crocs’ revenue totalled 625.9 million US dollars, up by 73%, or 72.2% on a constant currency basis, as compared to the same period of 2020.

Direct-to-consumer sales increased by 60.4% in this quarter to 316.3 million US dollars (as compared to 197.2 million US dollars in the same period last year), and wholesale revenue grew by 88.2%, reaching 309.6 million US dollars (as compared to 164.5 million US dollars in the third quarter of 2020). Digital sales rose by 68.9% in the third quarter of the current fiscal year, representing 36.8% of revenue, on a comparable basis to 37.7% and 32.2% of revenue in 2020 and 2019, respectively.

In the Americas, revenue reached 455.9 million US dollars, increasing by 94.5% on a constant currency basis from the same period last year. In the Asia Pacific region, revenue grew by 21.2% on a constant currency basis, adding up to 83.6 million US dollars. In the EMEA, revenue totalled 86.3 million US dollars, up by 42.8% on a constant currency basis from the third quarter of 2020.

In the three months to 30th of September 2021, operating income grew to 203.1 million US dollars from 72.1 million US dollars in the same period last year. Accordingly, operating margin increased from 19.9% to 32.4% this quarter of 2021. Adjusted income from operations rose by 172.1% to 205.1 million US dollars and adjusted operating margin corresponded to 32.8%, as compared to 20.8% in similar period last year.

Diluted earnings per share totalled 2.42 US dollars, as compared to 0.91 US dollars in the third quarter of 2020. Adjusted diluted earnings per share were 2.47 US dollars, up by 1.53 US dollars, as compared to 0.94 US dollars in the same period last year.

For the current fiscal year, Crocs expects revenue growth to be between 62% to 65% to 1.386 billion US dollars, up from its prior projection of a 60% to 65% increase.

Image Credits: crocs.com