Constant dollars

Crocs Q1 revenue up 43.5%, raises outlook

Crocs, Inc. revenue for the first quarter was $660.1 million, an increase of 43.5% over the same period last year or 46.7% at constant currencies . DTC revenue increased 34.6% and wholesale revenue increased 48.7%.

Noting its outlook for the coming year, the company said it expects consolidated revenue of approximately $3.5 billion, representing growth of between 52% and 55% over 2021.

“Our first quarter revenue growth of 47% in constant currencies speaks to the underlying strength of the Crocs and Heydude brands,” said Andrew Rees, Chief Executive Officer of the company, adding, “Consumer demand remains strong, giving us the confidence to raise our full-year revenue outlook to approximately $3.5 billion, our adjusted operating margin from 26% to 27% and our adjusted diluted earnings per share to 10.05 dollars to $10.65.”

Crocs brand revenue increases 18.5%

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

Crocs brand revenue increased 18.5% or 21.7% in constant currency to $545.2 million compared to the same period last year. Wholesale revenue increased 18.7% or 22.9% in constant currency, while DTC revenue increased 18.2% or 19.7% in constant currency.

The brand’s North American revenue of $319.5 million increased 19.5% both on a reported basis and at constant currencies. Asia Pacific revenue of $95.8 million increased 16% or 22.1% at constant currencies. Europe, Middle East, Africa and Latin America revenue of $129.9 million increased 17.9% or 26.8% at constant exchange rates.

Heydude brand revenue during the partial period was $114.9 million.

Crocs improves outlook

Looking to 2022, the company expects consolidated revenue of approximately $3.5 billion, a growth of between 52 and 55 percent over 2021.

Crocs brand revenue growth, excluding Heydude, is expected to exceed 20% and Heydude brand revenue is expected to be approximately $750-800 million on a reported basis, implying $840-890 million of dollars, including the period preceding the closing of the acquisition.

Adjusted operating margin of approximately 26% to 27% and adjusted diluted earnings per share of $10.05 to $10.65. Looking to the second quarter of 2022, Crocs expects consolidated revenue to be approximately $918-957 million, representing growth of approximately 43% to 49% from the second quarter of 2021.

Crocs brand revenue growth is expected to be approximately 17% to 20% in constant currency and 12% to 15% reported, implying approximately $718 million to $737 million in reported revenue.

Heydude brand revenue of approximately $200-220 million and adjusted EBIT margin of approximately 26%.