https://assets.capyfin.com/instruments/678fdc13234e27009c5d5ba4.png avatar
Crocs
🇺🇸 NASDAQ:CROX
View Company
OverviewEarningsDividends
•
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%.

Total Revenue
$985M
Previous year: $626M
+57.4%
EPS
$2.97
Previous year: $2.47
+20.2%
Gross Profit
$541M
Previous year: $400M
+35.4%
Cash and Equivalents
$143M
Previous year: $437M
-67.2%
Free Cash Flow
$129M
Previous year: $98.4M
+31.2%
Total Assets
$4.54B
Previous year: $1.75B
+160.3%

Crocs

Crocs

Crocs Revenue by Segment

Crocs 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.
  • Crocs Brand revenues to still be $5.0 billion by 2026.
  • HEYDUDE Brand revenues to now be over $1.0 billion in 2023.
  • Consolidated adjusted operating margins to still exceed 26% by 2026.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Crocs