World Footwear

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Crocs posts revenue growth of 51%

Aug 12, 2022 United States
Crocs posts revenue growth of 51%
The US-based company reported a "record" quarterly revenue of 964.6 million US dollars in the second quarter of 2022, growing in every region, but it still lowered its full year outlook
"I am very proud of our second quarter results. I am particularly excited by record revenues for the Crocs Brand and the strong growth internationally. Heydude continues to outperform our expectations and we now expect nearly 1 billion US dollars in pro forma revenues this year. We have two incredibly strong brands that are well positioned to meet the needs of our core consumers with our value and comfort proposition. The consumer demand for both our brands is exceptional and we expect both brands to gain market share in this dynamic environment. We remain incredibly confident in our long-term growth and our ability to generate best-in-class profitability", commented Andrew Rees, Chief Executive Officer of Crocs.

Second Quarter Results

In the second quarter of fiscal 2022, the company's revenue totalled 964.6 million US dollars, reflecting an increase of 50.5% (or 55.6% on a constant currency basis) on a comparable basis to the same period of last year. The Crocs brand posted revenue growth of 14.3%, or 19.4% on a constant currency basis, totalling 732.2 million US dollars, while Heydude generated a revenue of 232.2 million US dollars.

By channel, in this period, direct-to-consumer (DTC) sales, which includes retail and e-commerce, rose by 22.8% and wholesale revenue grew by 80.6%, as compared to the second quarter of 2021.

In the second quarter of the current fiscal year, the North America region generated a revenue of 422.9 million US dollars, up by 7.6% (or 7.8% on a constant currency basis), the Asia-Pacific region recorded a revenue increase of 17.4% (or 27.6% on a constant currency basis), reaching 148.9 million US dollars, and the EMEALA region witnessed a sales growth of 32.8% (or 48.4% on a constant currency basis), totalling 160.4 million US dollars, on a comparable basis to the same quarter of the previous year.

Gross margin contracted from 61.7% in the second quarter of last year to 51.6% this second quarter, and the adjusted margin shrank to 55.2% from 61.8%, primarily due to freight headwinds, which were partially offset by increased prices and product mix.

In the three months to the 30th of June, the company's diluted earnings per share were 2.58 US dollars, as compared to 4.93 US dollars in similar period of last year, the "result of a favourable, discrete impact of a tax legislation change in the prior year". Adjusted diluted earnings per share rose 45.3% to 3.41 US dollars, on a comparable basis with 2.23 US dollars in the second quarter of 2021.

Fiscal 2022 Outlook

For fiscal 2022, the company revised its guidance and is now expecting its consolidated revenue to be approximately 3.395 million US dollars to 3.505 billion US dollars (previously: 3.5 billion US dollars), reflecting growth between 47% to 52% (previously: an increase of between 52% to 55%), as compared to 2021.


Image Credits: hypebae.com

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