Crocs expects record annual revenue growth in upcoming 2021 results
Crocs is set to see record revenue growth for the financial year, estimating revenues to grow 67%, up from recent guidance of 62% to 65% growth.
The casual footwear brand has confirmed it now expects fourth quarter revenue growth of approximately 42%, as sales surged over the past 18 months.
Crocs projects its non-GAAP operating margin for the fourth quarter to be approximately 28% and its full year non-GAAP operating margin to be nearly 30%. The company also completed share repurchases of $1 billion during the year.
In December 2021, Crocs acquired Heydude, an Italian casual footwear label in a $2.5 billion cash-and-stock deal that is expected to be finalised in the first quarter of 2022. Founded in 2008, Heydude reported $570 million in revenue in 2021, with 43% of its sales from ecommerce.
Andrew Rees, Chief Executive Officer of Crocs said in a statement: "2021 proved to be an exceptional year for the Crocs brand, highlighted by expected 67% revenue growth amidst a challenging global supply chain environment. We remain incredibly confident in the Crocs brand and continue to expect to achieve $5 billion in revenues by 2026, even before any Heydude revenues. Building upon that strong foundation, upon closing, we are excited to add Heydude as another high growth, highly profitable brand."
Looking forward, the company expects revenue growth for the Crocs brand to exceed 20% for the present fiscal year, with projected revenues for Heydude to reach approximately $700 to $750 million.