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Sep 30, 2022
Crocs Q3 2022 Earnings Report
Crocs reported record revenue and industry-leading adjusted operating margin.
Key Takeaways
Crocs, Inc. reported exceptional third quarter results, with record revenue and an industry-leading adjusted operating margin of 28%. The company is raising its 2022 guidance following a strong back-to-school performance and 20% constant currency revenue growth in the Crocs Brand.
Consolidated revenues increased 57.4% to $985.1 million, or 63.0% on a constant currency basis, compared to 2021.
Crocs Brand quarterly revenues increased 14.3% to $715.7 million, or 19.9% on a constant currency basis, compared to 2021, with direct-to-consumer comparable sales increasing 18.2%.
HEYDUDE Brand revenues were $269.4 million, up approximately 87% compared to 2021.
Operating margin was 26.8% and adjusted operating margin was 27.9%.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Crocs expects consolidated revenues to be approximately $3.455 to $3.520 billion, representing growth between 49% and 52% compared to 2021. Adjusted diluted earnings per share to now be between $9.95 and $10.30.
Positive Outlook
- Consolidated revenues to now be approximately $3.455 to $3.520 billion, representing growth between 49% and 52% compared to 2021.
- Crocs Brand revenues to now be $2.605 to $2.630 billion, implying approximately 17% growth on a constant currency basis, and approximately 13% growth on a reported basis.
- HEYDUDE Brand revenues to still be approximately $850 to $890 million on a reported basis, implying $940 to $980 million, including the period of time prior to the closing of the acquisition.
- Adjusted operating income to now be approximately $920 to $950 million and adjusted operating margin to be approximately 27%.
- Adjusted diluted earnings per share to now be between $9.95 and $10.30.
Challenges Ahead
- GAAP tax rate of approximately 25% and non-GAAP effective tax rate to now be approximately 21%.
- Capital expenditures to now be approximately $150 to $170 million, primarily for supply chain investments to support growth.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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