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Crocs
🇺🇸 NASDAQ:CROX
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•
Jun 30, 2021

Crocs Q2 2021 Earnings Report

Reported record second quarter revenue and committed to net zero emissions by 2030.

Key Takeaways

Crocs, Inc. reported a record second quarter with revenues growing 93% to $641 million. Operating income increased significantly to $195 million. The company raised its full-year revenue growth and operating margin guidance and committed to net zero emissions by 2030.

Record revenues of $640.8 million, an increase of 93.3% compared to 2020.

Digital sales grew 25.4% and represented 36.4% of revenue.

Direct-to-consumer sales grew 78.6% compared to 2020.

Operating income more than tripled to $195.3 million compared to 2020, with operating margins expanding to 30.5%.

Total Revenue
$641M
Previous year: $332M
+93.3%
EPS
$2.23
Previous year: $1.01
+120.8%
Gross Profit
$395M
Previous year: $180M
+119.6%
Cash and Equivalents
$198M
Previous year: $151M
+30.7%
Free Cash Flow
$199M
Previous year: $117M
+70.1%
Total Assets
$1.49B
Previous year: $811M
+84.2%

Crocs

Crocs

Crocs Revenue by Segment

Crocs Revenue by Geographic Location

Forward Guidance

Crocs expects revenue growth to be between 60% and 70% for Q3 2021 compared to Q3 2020. Non-GAAP operating margin is expected to be between 24% and 26%. Full year revenue growth is expected to be between 60% and 65% compared to 2020, with a non-GAAP operating margin of approximately 25%.

Positive Outlook

  • Revenue growth to be between 60% and 70% compared to third quarter 2020 revenues of $361.7 million.
  • Non-GAAP operating margin to be between 24% and 26%.
  • Revenue growth to be between 60% and 65% compared to 2020 revenues of $1,386.0 million.
  • Non-GAAP operating margin of approximately 25%.
  • Capital expenditures of $80 to $100 million for supply chain investments to support growth.

Challenges Ahead

  • Non-GAAP adjustments of approximately $3 million related to distribution center investments that will negatively impact gross margin in Q3 2021.
  • Non-GAAP adjustments of approximately $8 to $10 million related to distribution center investments that will negatively impact gross margin for full year 2021.
  • Non-GAAP effective tax rate of approximately 23%, excluding a GAAP tax credit of $175.7 million for full year 2021.
  • Potential impacts to business related to commitment to achieve net zero emissions by 2030.
  • The COVID-19 pandemic and related global financial conditions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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