Crocs posts strong revenue growth, forecasts upbeat 2023
Fourth quarter revenue at Crocs, Inc. was 945.2 million dollars, an increase of 61.1 percent from the same period last year or 64.8 per cent on a constant currency basis. Direct-to-consumer (DTC), which includes retail and e-commerce, revenues grew 61.2 per cent and wholesale revenues grew 61.1 per cent.
The company’s revenues of 3.6 billion dollars in 2022 increased 53.7 per cent or 58.2 per cent on a constant currency basis, over 2021.
“Consumer demand for the Crocs and Heydude brands has been exceptional, fueling record 2022 revenues for both brands at a combined 3.6 billion dollars and top-tier adjusted operating margin of 28 percent. 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,” said Andrew Rees, the company’s Chief Executive Officer.
Crocs brand revenue increases 14.9 per cent.
Crocs brand revenues increased 14.9 percent or 19.4 per cent on a constant currency basis to 2,659.1 million dollars. Wholesale revenues increased 17.3 percent or 23.4 per cent on a constant currency basis. DTC revenues rose 12.5 per cent or 15.3 per cent on a constant currency basis.
North America revenues of 1,644.6 million dollars increased 6 per cent on a constant currency basis, while DTC comparable sales were 11.5 percent.
Asia Pacific revenues of 473.9 million dollars increased 47 per cent on a constant currency basis, while DTC comparable sales were 27 per cent.
Europe, Middle East, Africa, and Latin America (EMEALA) revenues of 540.5 million dollars increased 46.8 per cent on a constant currency basis and DTC comparable sales were 32 percent.
Heydude brand revenues were 895.9 million dollars for the period following the closing of the acquisition on February 17, 2022 with wholesale revenues of 574.1 million dollars and DTC revenues of 321.7 million dollars. Including the period prior to the acquisition, revenues were 986.2 million dollars.
The company’s diluted earnings per share decreased 23.5 percent to 8.71 dollars per share, while adjusted diluted earnings per share increased 31.3 per cent to 10.92 dollars.
Crocs forecasts robust revenue growth in 2023.
With respect to the first quarter of 2023, Crocs expects revenues to grow approximately 27 per cent to 30 per cent compared to first quarter 2022 revenues of 660.1 million dollars, adjusted operating margin of approximately 24 percent to 25 per cent and adjusted diluted earnings per share of 2.06 dollars to 2.19 dollars.
With respect to 2023, the company forecasts revenue growth of 10 per cent to 13 per cent compared to 2022, resulting in full year revenues of approximately 3.9 billion dollars to 4 billion dollars at current currency rates.
Revenues for the Crocs brand to grow 6 per cent to 8 per cent and 9 per cent to 11 per cent in constant currency. Revenues for the Heydude brand to grow mid-20 per cent on a reported basis. Adjusted operating margin is expected to be approximately 26 per cent.
