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Mar 31, 2022
Crocs Q1 2022 Earnings Report
Crocs reported strong Q1 2022 results with significant revenue growth and raised full-year guidance.
Key Takeaways
Crocs, Inc. reported a 43.5% increase in consolidated revenues to $660.1 million in Q1 2022. The company raised its full-year revenue outlook to approximately $3.5 billion and adjusted diluted earnings per share to $10.05 to $10.65.
Consolidated revenues increased by 43.5% to $660.1 million.
Crocs Brand revenues grew by 18.5% to $545.2 million.
HEYDUDE Brand revenues were $114.9 million for the partial period following the acquisition.
Direct-to-consumer revenues increased by 34.6%.
Crocs
Crocs
Crocs Revenue by Segment
Crocs Revenue by Geographic Location
Forward Guidance
Crocs provided full year 2022 guidance, expecting consolidated revenues of approximately $3.5 billion and adjusted diluted earnings per share of $10.05 to $10.65.
Positive Outlook
- Consolidated revenues to be approximately $3.5 billion, representing growth between 52% and 55% compared to 2021.
- Revenue growth for the Crocs Brand, excluding HEYDUDE, to exceed 20% compared to 2021.
- Revenues for the HEYDUDE Brand to be approximately $750 to $800 million on a reported basis.
- Adjusted operating margin to be approximately 26% to 27%.
- Adjusted diluted earnings per share of $10.05 to $10.65.
Challenges Ahead
- Gross margin to include an incremental $75 million of air freight in the first half of 2022.
- Non-GAAP adjustments of $75 million of non-cash costs in cost of sales.
- An additional $60 million in SG&A costs related to Non-GAAP adjustments.
- GAAP tax rate of approximately 25%.
- Capital expenditures of approximately $170 to $200 million, primarily for supply chain investments to support growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income