Jun 30, 2022

Crocs Q2 2022 Earnings Report

Crocs reported record revenues and strong growth, with HEYDUDE outperforming expectations.

Key Takeaways

Crocs, Inc. reported a 51% increase in consolidated revenues to $964.6 million for the second quarter of 2022. The Crocs Brand saw record quarterly revenues, and the HEYDUDE Brand continued to exceed expectations. Adjusted diluted EPS rose 45% to $3.24.

Consolidated revenues increased by 50.5% to $964.6 million.

Crocs Brand revenues grew by 14.3% to $732.2 million.

HEYDUDE Brand revenues were $232.4 million, up approximately 96% compared to 2021.

Adjusted diluted earnings per share increased 45.3% to $3.24.

Total Revenue
$965M
Previous year: $641M
+50.5%
EPS
$3.24
Previous year: $2.23
+45.3%
Gross Profit
$498M
Previous year: $395M
+26.0%
Cash and Equivalents
$187M
Previous year: $198M
-5.3%
Free Cash Flow
$137M
Previous year: $199M
-31.3%
Total Assets
$4.59B
Previous year: $1.49B
+207.0%

Crocs

Crocs

Crocs Revenue by Segment

Crocs Revenue by Geographic Location

Forward Guidance

Crocs expects consolidated revenues to be approximately $915 to $955 million for Q3 2022, implying approximately 46% to 53% growth compared to third quarter 2021.

Positive Outlook

  • Consolidated revenues to be approximately $915 to $955 million.
  • Crocs Brand revenues to be $680 to $700 million, implying approximately 15% to 18% growth on a constant currency basis.
  • HEYDUDE Brand revenues of approximately $235 to $255 million.
  • Adjusted operating margin of approximately 25% to 26%, excluding non-GAAP adjustments.
  • Full year 2022 adjusted diluted earnings per share to now be between $9.50 and $10.30.

Challenges Ahead

  • Adjusted operating margin includes approximately $15 million impact from air freight.
  • Gross margin to still include $75 million of air freight in 2022.
  • Supply chain disruptions.
  • Cost inflation.
  • Potential adverse currency exchange rate fluctuations and other international operating risks

Revenue & Expenses

Visualization of income flow from segment revenue to net income