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Crocs Q2 revenues jump 93.3 percent

By Prachi Singh

Jul 22, 2021

Management

Image: Crocs, Facebook

Crocs reported revenues of 640.8 million dollars in the second quarter, an increase of 93.3 percent or 88.4 percent on a constant currency basis as compared to 2020.

The company’s diluted earnings per share were 4.93 dollars compared to 83 cents for the same period last year and adjusted diluted earnings per share were 2.23 dollars, up 1.22 dollars compared to 1.01 dollars for the same period last year.

The company said that operating income more than tripled to 195.3 million dollars as compared to 2020 and operating margins expanded to 30.5 percent.

“We continue to see strong consumer demand for the Crocs brand globally. On the back of record second quarter results and continued momentum, we are raising our full year 2021 guidance,” said Andrew Rees, Crocs chief executive officer in a statement, adding, “We are also committing to net zero emissions by 2030, enabling us to provide ‘comfort without carbon’ to our customers worldwide.”

Highlights of Crocs Q2 results

Crocs digital sales grew 25.4 percent to represent 36.4 percent of revenue versus 56.1 percent and 32.6 percent of revenue in 2020 and 2019, respectively.

The company’s revenues in the ​​Americas of 405.7 million dollars increased 135.6 percent on a constant currency basis, revenues in Asia Pacific of 126.8 million dollars increased 27.1 percent on a constant currency basis, while EMEA revenues of 108.3 million dollars increased 52.6 percent on a constant currency basis.

The company reported DTC revenue increase of 78.6 percent to 333.4 million dollars compared to 186.7 million dollars for the same period last year and wholesale revenue increase of 112.1 percent to 307.3 million dollars compared to 144.9 million dollars for the same period last year.

Crocs raises full year outlook on strong Q2

With respect to the third quarter of 2021, Crocs expects revenue growth to be between 60 percent and 70 percent compared to third quarter 2020 revenues of 361.7 million dollars. The company added that non-GAAP adjustments of approximately 3 million dollars related to distribution center investments are expected to negatively impact gross margin.

Crocs expects non-GAAP operating margin to be between 24 percent and 26 percent for the third quarter.

For the full year, revenue growth is expected to be between 60 percent and 65 percent compared to 2020 revenues of 1,386 million dollars, while non-GAAP operating margin is expected to be approximately 25 percent.

The company further said that non-GAAP adjustments of approximately 8 to 10 million dollars related to distribution center investments are expected to negatively impact gross margin.