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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.
Crocs
Crocs
Crocs Revenue by Geographic Location
Revenue by Geographic Location
North America Revenue
CapyFin.comInternational Revenue
CapyFin.com 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