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Sep 30, 2021
Crocs Q3 2021 Earnings Report
Crocs reported record revenues and industry-leading operating margin.
Key Takeaways
Crocs, Inc. announced exceptional third quarter results with a 73% increase in revenue compared to 2020 and an industry-leading operating margin of 32%. The company is managing global supply chain disruptions and expects revenue growth to exceed 20% in 2022.
Record revenues of $625.9 million, a 73.0% increase compared to 2020.
Operating income more than doubled to $203.1 million, with operating margin expanding to 32.4%.
Digital sales grew 68.9%, representing 36.8% of revenues.
Revenue growth was strong in all regions, with the Americas up 94.5%, Asia Pacific up 21.2%, and EMEA up 42.8% on a constant currency basis.
Revenue by Geographic Location
Forward Guidance
Crocs expects revenue growth to be between 62% and 65% for full year 2021 compared to 2020. For 2022, the company expects revenue growth to exceed 20% compared to 2021.
Positive Outlook
- Revenue growth to be between 62% and 65% compared to 2020 revenues of $1,386.0 million.
- Non-GAAP operating margin of approximately 28%.
- Non-GAAP effective tax rate of approximately 23%.
- Capital expenditures of approximately $75 million for supply chain investments to support growth.
- Revenue growth to exceed 20% compared to 2021.
Challenges Ahead
- Non-GAAP adjustments of approximately $8 to $10 million related to distribution center investments that will negatively impact gross margin.
- Gross margin to include an incremental $75 million of air freight compared to 2021.
- Global Supply Chain Disruptions During the third quarter our business was impacted by Vietnamese factory closures and widespread disruption in the global supply chain.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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