Crocs revenues soar past estimates in record Q3

By

Robin Driver

Published
Oct 22, 2021

Broomfield, Colorado-based footwear maker Crocs, Inc. reported third-quarter revenues of $625.9 million on Thursday, a record figure for the brand that beat analysts’ expectations by quite some way. As reported by CNBC, analysts surveyed by Refinitiv had predicted that Crocs would announce Q3 revenues of $610 million.
 

The company’s revenue for the third quarter ended September 30, 2021, represented a 73.0% increase from $361.2 million in the same period in the previous year, or a 72.2% rise in constant currencies.
 
Crocs experienced strong revenue growth in all geographic regions during the quarter, but saw particularly impressive progress in the Americas, where revenues were $455.9 million, up 94.5% on a constant currency basis year over year. In Europe, the Middle East and Africa (EMEA), sales rose 43.8% in constant currencies to $86.3 million, while in the Asia-Pacific region they increased 21.2% to $83.6 million.

Direct-to-consumer sales at the company rose 60.4% to $316.3 million, while wholesale revenues increased 88.2% to $309.6 million. Digital sales increased 68.9% and represented 36.8% of Crocs’ total revenues during the quarter, compared to 37.7% in Q3 2020 and 32.2% in Q3 2019.
 
Quarterly net income at the company was $153.5 million, or $2.42 per diluted share, up from $61.9 million, or $0.91 per diluted share.
 
“Our third quarter was exceptional, underscored by 73% revenue growth over 2020 and industry-leading operating margin of 32%,” said Crocs CEO Andrew Rees in a release. “Globally, our teams are managing through the supply chain disruptions to mitigate the impact on our business. Despite the temporary disruptions, we expect 2022 revenues to grow over 20% from 2021 fueled by the strength of our brand and consumer demand globally.”
 
Year to date, Crocs reported $1.7 billion in revenues, up 77.2%, compared to $974.4 million in the same nine-month period in the previous year. Earnings were $570.8 million, or $8.79 per diluted share, rising from $129.5 million, or $1.89 per diluted share.
 
Crocs also increased its full-year financial outlook, announcing that, compared to its 2020 revenues of $1.4 billion, it now expects to report revenue growth of between 62% and 65% in fiscal 2021. Looking forward to next year, the company said that it expects its revenue growth to exceed 20% in 2021.
 
In September, Crocs revealed a new five-year growth framework through which it aims to achieve revenues of $5 billion by 2026. In particular, the strategy focuses on digital expansion, gaining market share in sandals, growth in Asia, and innovation in product and marketing.