Crocs Q1 sales surge 44%; earnings hit by freight, HeyDude acquisition expenses

By

Benjamin Fitzgerald

Published
May 6, 2022

Crocs Inc. said on Thursday revenues during its first quarter surged 44%, with double-digit growth record across all distribution channels, prompting the U.S. footwear company to raise its full year guidance.

The Broomfield, Colorado-based company said total revenues ​increased 43.5% to $660.1 million, or 46.7% on a constant currency basis, as compared to 2021.

Crocs brand revenues reached $545.2 million, an increase of 18.5%, while HeyDude ​brand revenues were $114.9 million for the period following the closing of the acquisition on February 17 through March 31.

By channel, total direct-to-consumer (DTC) revenues grew 34.6%, while wholesale revenues increased 48.7% to $431.2 million.

By region, ​North America revenues totalled $319.5 million, up 19.5%, Asia-Pacific sales grew 16% to $95.8 million, and Europe, Middle East, Africa, and Latin America increased 17.9% to $129.9 million.

Despite the revenue uptick across all markets and retail segments, Crocs said earnings were hit by increased air freight and acquisition expenses, which saw net income fall to $​72.76 million, from $98.40 million in the same quarter last year. Diluted earnings per share dropped to $1.19, compared to $1.47 per share last year.

"Our first quarter revenue growth of 47% on a constant currency basis is a testament to the underlying strength of the Crocs and HeyDude brands," said Andrew Rees, chief executive officer.

Full-year consolidated revenues are forecast to grow between 52% and 55% compared to 2021.

"Consumer demand remains strong giving us the confidence to raise our full year outlook for revenue to approximately $3.5 billion, adjusted operating margin to 26% to 27%, and adjusted diluted earnings per share to $10.05 to $10.65."