Crocs, Inc. reported fourth quarter revenues of 586.6 million dollars, an increase of 42.6 percent from the same period last year or 43.5 percent on a constant currency basis.
For the year 2021, the company’s revenues of 2,313.4 million dollars increased 66.9 percent or 65.2 percent on a constant currency basis, over 2020, while diluted earnings per share increased 149.8 percent to 11.39 dollars per share and adjusted diluted earnings per share more than doubled to 8.32 dollars.
"A strong 2021 holiday season completed a very successful year for our brand. We achieved incredible results with record revenues of 2.3 billion dollars, 67 percent revenue growth and industry-leading 30 percent operating margin. 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 dollars in revenues by 2026," said Andrew Rees, the company’s chief executive officer in a release.
Highlights of Crocs fourth quarter and 2021 operating results
Fourth quarter direct-to-consumer (DTC), which includes retail and e-commerce, revenues grew 44.5 percent and wholesale revenues grew 40.3 percent.
Gross margin was 63.4 percent and adjusted gross margin was 63.7 percent, both increased 770 basis points compared to the same period last year.
Diluted earnings per share were 2.57 dollars compared to 2.69 dollars for the same period last year due to a lower tax benefit, while adjusted diluted earnings per share doubled to 2.15 dollars compared to 1.06 dollars for the same period last year.
Gross margin for the full year of 61.4 percent increased 730 basis points compared to 54.1 percent last year, while adjusted gross margin of 61.6 percent rose 700 basis points from last year.
Review of Crocs performance across geographies
The company’s revenues in the Americas of 1,607 million dollars increased 85.9 percent on a constant currency basis. Asia Pacific revenues of 350.2 million dollars increased 21.5 percent on a constant currency basis, while Europe, Middle East, and Africa (EMEA) revenues of 356.2 million dollars increased 41.7 percent on a constant currency basis.
DTC revenues of 1,139.3 million dollars increased 64.4 percent compared to 693 million dollars last year. Wholesale revenues of 1,174.1 million dollars increased 69.4 percent and digital sales, which includes sales through company-owned websites, third party marketplaces and e-tailers grew 47.6 percent in 2021 with double-digit growth in all regions to represent 36.7 percent of revenues.
Crocs reveals first quarter and full year outlook
For the first quarter of 2022, Crocs expects revenues to be approximately 605 to 630 million dollars, implying approximately 31 percent to 37 percent growth compared to first quarter 2021 revenues of 460.1 million dollars. This assumes the Heydude acquisition that closes in February 2022.
Excluding Heydude, the company expects Crocs brand revenues of 520 to 535 million dollars, which implies organic growth of approximately 13 percent to 16 percent.
Adjusted operating margin is expected of approximately 22 percent including a roughly 30 million dollars impact from air freight.
For the full year 2022, the company expects revenue growth for the Crocs brand, excluding Heydude, to exceed 20 percent compared to 2021. Revenues for Heydude to be approximately 700 to 750 million dollars, including the period of time prior to the closing of the acquisition and 620 to 670 million dollars on a reported basis.
Crocs expects adjusted operating margin to be approximately 26 percent and adjusted diluted earnings per share of 9.70 dollars to 10.25 dollars.