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Crocs
🇺🇸 NASDAQ:CROX
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•
Dec 31, 2021

Crocs Q4 2021 Earnings Report

Reported record annual revenues and a successful Q4, driven by strong consumer demand and strategic growth initiatives.

Key Takeaways

Crocs, Inc. reported a strong Q4 2021 with revenues of $586.6 million, a 42.6% increase year-over-year. The company's operating margin rose to 27.3%, and adjusted diluted earnings per share doubled to $2.15. Crocs is confident in its plan to grow to $6 billion in revenues by 2026.

Revenues increased by 42.6% to $586.6 million compared to the same period last year.

Direct-to-consumer revenues grew by 44.5%, and wholesale revenues increased by 40.3%.

Operating margin rose to 27.3% from 15.7% for the same period last year.

Adjusted diluted earnings per share doubled to $2.15 compared to $1.06 for the same period last year.

Total Revenue
$587M
Previous year: $412M
+42.6%
EPS
$2.15
Previous year: $1.06
+102.8%
Gross Profit
$372M
Previous year: $229M
+62.4%
Cash and Equivalents
$213M
Previous year: $136M
+57.0%
Free Cash Flow
$192M
Previous year: $99.4M
+93.0%
Total Assets
$1.55B
Previous year: $1.12B
+38.1%

Crocs

Crocs

Crocs Revenue by Segment

Crocs Revenue by Geographic Location

Forward Guidance

For Q1 2022, Crocs expects revenues between $605 to $630 million, representing 31% to 37% growth. Crocs brand revenues are expected to grow 13% to 16%, excluding HEYDUDE. Adjusted operating margin is expected to be approximately 22%.

Positive Outlook

  • Revenues to be approximately $605 to $630 million, implying approximately 31% to 37% growth compared to first quarter 2021 revenues of $460.1 million.
  • Excluding HEYDUDE, we expect Crocs brand revenues of $520 to $535 million, which implies organic growth of approximately 13% to 16%.
  • Adjusted operating margin of approximately 22% including a roughly $30 million impact from air freight.
  • Revenue growth for the Crocs brand, excluding HEYDUDE, to exceed 20% compared to 2021.
  • Adjusted diluted earnings per share of $9.70 to $10.25.

Challenges Ahead

  • Adjusted operating margin of approximately 22% including a roughly $30 million impact from air freight.
  • Gross margin to include an incremental $75 million of air freight in the first half of 2022.
  • Non-GAAP adjustments of $30 million in SG&A costs, primarily associated with the HEYDUDE acquisition
  • Non-GAAP adjustments an additional $40 million of non-cash costs in cost of sales, primarily related to the write up of HEYDUDE inventory costs to fair market value at the close of the acquisition.
  • Combined GAAP tax rate of approximately 25% and Non-GAAP effective tax rate of approximately 22%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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