Crocs Q1 revenues up 43.5 percent, raises outlook

Crocs, Inc. first quarter revenues were 660.1 million dollars, an increase of 43.5 percent from the same period last year or 46.7 percent on a constant currency basis. DTC revenues grew 34.6 percent and wholesale revenues grew 48.7 percent.

Raising its outlook for the year ahead, the company said it expects consolidated revenues to be approximately 3.5 billion dollars, representing growth between 52 percent and 55 percent compared to 2021.

"Our first quarter revenue growth of 47% on a constant currency basis is a testament to the underlying strength of the Crocs and Heydude brands," said Andrew Rees, the company’s chief executive officer, adding, "Consumer demand remains strong giving us the confidence to raise our full year outlook for revenue to approximately 3.5 billion dollars, adjusted operating margin to 26 percent to 27 percent, and adjusted diluted earnings per share to 10.05 dollars to 10.65 dollars."

Crocs brand revenues increase 18.5 percent

Gross margin for the quarter of 49.2 percent decreased 580 basis points compared to 55 percent in the same period last year. Adjusted gross margin of 53.9 percent fell 130 basis points compared to the same period last year.

Crocs brand revenues increased 18.5 percent or 21.7 percent on a constant currency basis to 545.2 million dollars compared to the same period last year. Wholesale revenues increased 18.7 percent or 22.9 percent on a constant currency basis, while DTC revenues increased 18.2 percent or 19.7 percent on a constant currency basis.

The brand’s North America revenues of 319.5 million dollars increased 19.5 percent on both a reported and on a constant currency basis. Asia Pacific revenues of 95.8 million dollars increased 16 percent or 22.1 percent on a constant currency basis. Europe, Middle East, Africa, and Latin America revenues of 129.9 million dollars increased 17.9 percent or 26.8 percent on a constant currency basis.

Heydude brand revenues during the partial period were 114.9 million dollars.

Crocs raises outlook

With respect to 2022, the company expects consolidated revenues to be approximately 3.5 billion dollars, representing growth between 52 percent and 55 percent compared to 2021.

Revenue growth for the Crocs brand, excluding Heydude, to exceed 20 percent and revenues for the Heydude brand to be approximately 750 to 800 million dollars on a reported basis, implying 840 to 890 million dollars, including the period of time prior to the closing of the acquisition.

Adjusted operating margin to be approximately 26 percent to 27 percent and adjusted diluted earnings per share of 10.05 dollars to 10.65 dollars. With respect to the second quarter of 2022, Crocs expects consolidated revenues to be approximately 918 to 957 million dollars, approximately 43 percent to 49 percent growth compared to second quarter 2021.

Crocs brand revenue growth to be approximately 17 percent to 20 percent on a constant currency basis, and 12 percent to 15 percent on a reported basis, which implies revenues of approximately 718 to 737 million dollars on a reported basis.

Heydude brand revenues of approximately 200 to 220 million dollars and adjusted operating margin of approximately 26 percent.