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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%.
Crocs
Crocs
Crocs Revenue by Segment
Crocs Revenue by Geographic Location
Revenue by Segment
HEYDUDE Brand Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comInternational Revenue
CapyFin.com 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.