menu

Press Release Details

All Press Releases

Crocs, Inc. Reports Record Annual Revenues of $2.3 Billion, Growing 67% Over 2020

February 16, 2022
Full Year Operating Margins Increased to 30%
2022 Guidance Reaffirmed

BROOMFIELD, Colo., Feb. 16, 2022 /PRNewswire/ -- Crocs, Inc. (NASDAQ: CROX) a world leader in innovative casual footwear for women, men, and children, today announced its fourth quarter and full year 2021 financial results.

"A strong 2021 holiday season completed a very successful year for our brand. We achieved incredible results with record revenues of $2.3 billion, 67% revenue growth and industry-leading 30% operating margin," said Andrew Rees, Chief Executive Officer. "Our fourth straight year of revenue growth was fueled by continued strong consumer demand for the Crocs brand globally. We are excited about our sustainable growth trajectory for both the Crocs and HEYDUDE brands and are confident in our plan to grow to $6 billion in revenues by 2026."

Amounts referred to as "Adjusted" or "Non-GAAP" are Non-GAAP measures and include adjustments that are described under the heading "Reconciliation of GAAP Measures to Non-GAAP Measures." A reconciliation of these amounts to their GAAP counterparts are contained in the schedules below.

Fourth Quarter 2021 Operating Results 

  • Revenues were $586.6 million, an increase of 42.6% from the same period last year, or 43.5% on a constant currency basis. Direct-to-consumer ("DTC"), which includes retail and e-commerce, revenues grew 44.5% and wholesale revenues grew 40.3%.
  • Gross margin of 63.4% and adjusted gross margin of 63.7% both increased 770 basis points compared to the same period last year.
  • Selling, general and administrative expenses ("SG&A") of $212.0 million increased from $164.5 million in the same period last year and as a percent of revenues improved by 390 basis points to 36.1%. Adjusted SG&A was relatively flat compared to prior year at 35.1% of revenues.
  • Income from operations increased 147.5% to $160.0 million and operating margin rose to 27.3% from 15.7% for the same period last year. Adjusted income from operations rose 93.1% to $168.1 million and adjusted operating margin was 28.6% compared to 21.1% for the same period last year.
  • Diluted earnings per share were $2.57 compared to $2.69 for the same period last year due to a lower tax benefit. Adjusted diluted earnings per share doubled to $2.15 compared to $1.06 for the same period last year.

2021 Operating Results

  • Record revenues of $2,313.4 million increased 66.9%, or 65.2% on a constant currency basis, over 2020.
  • Gross margin of 61.4% increased 730 basis points compared to 54.1% last year. Adjusted gross margin of 61.6% rose 700 basis points from last year.
  • SG&A expenses of $737.2 million increased from $535.8 million last year and as a percent of revenues improved by 680 basis points to 31.9%. Adjusted SG&A improved to 31.6% of revenues versus 35.6% for the same period last year.
  • Income from operations increased 219.0% to $683.1 million from $214.1 million last year. Operating margin rose 1,410 basis points to 29.5%. Adjusted income from operations increased 164.8% to $695.3 million and adjusted operating margin was 30.1% compared to 18.9% last year.
  • Diluted earnings per share increased 149.8% to $11.39 per share. Adjusted diluted earnings per share more than doubled to $8.32.

2021 Geographic Summary

  • Americas: Revenues of $1,607.0 million increased 85.9% on a constant currency basis.
  • Asia Pacific: Revenues of $350.2 million increased 21.5% on a constant currency basis.
  • Europe, Middle East, and Africa ("EMEA"): Revenues of $356.2 million increased 41.7% on a constant currency basis.

2021 Channel Summary

  • DTC: Revenues of $1,139.3 million increased 64.4% compared to $693.0 million last year.
  • Wholesale: Revenues of $1,174.1 million increased 69.4% compared to $692.9 million last year.
  • Digital sales, which includes sales through our company-owned websites, third party marketplaces, and e-tailers, grew 47.6% in 2021 with double-digit growth in all regions to represent 36.7% of revenues.

Balance Sheet and Cash Flow

  • Cash and cash equivalents were $213.2 million as of December 31, 2021, up from $135.8 million as of December 31, 2020.
  • Inventories increased to $213.5 million as of December 31, 2021 compared to $175.1 million as of December 31, 2020.
  • Cash provided by operating activities rose 112.5% to $567.2 million during 2021 compared to $266.9 million during 2020.
  • Capital expenditures were $55.9 million during 2021 compared to $42.0 million during 2020.
  • Borrowings at December 31, 2021 were $771.4 million. Our liquidity position remains strong with $414.7 million in available borrowing capacity.

Share Repurchase Activity

During 2021, we spent $1.0 billion to repurchase 8.2 million shares of our common stock, including the impact of the Accelerated Share Repurchase share delivery in January 2021. At year end, $1.1 billion of share repurchase authorization remained available for future repurchases. In the immediate term, we plan to prioritize repayments of debt, including debt incurred to finance a portion of the HEYDUDE acquisition, and thus have suspended our share repurchase program until such time that our gross leverage is under 2.0x. We do not expect this to occur in 2022.

HEYDUDE Acquisition

The transaction is expected to close in February 2022, subject to customary closing conditions. As previously announced, the acquisition will be funded by $2.05 billion in cash and 2,852,280 shares issued to one of the sellers based on the average of the daily volume-weighted average price of our stock for the 20 days immediately prior to the signing date of December 22, 2021. To fund the cash consideration, we have secured commitments for and expect to enter into a $2.0 billion Term Loan B Facility. We also expect to borrow $50.0 million under our existing Senior Revolving Credit Facility as well as exercise the accordion provision on the Revolving Credit Agreement to increase the borrowing capacity thereunder by $100.0 million.

Financial Outlook

First Quarter 2022

With respect to the first quarter of 2022, we expect:

  • Revenues to be approximately $605 to $630 million, implying approximately 31% to 37% growth compared to first quarter 2021 revenues of $460.1 million. This assumes the HEYDUDE acquisition closes in February 2022.
  • 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.
  • Non-GAAP adjustments of $30 million in SG&A costs, primarily associated with the HEYDUDE acquisition, and 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.

Full Year 2022

With respect to 2022, we expect:

  • Revenue growth for the Crocs brand, excluding HEYDUDE, to exceed 20% compared to 2021.
  • Revenues for HEYDUDE to be approximately $700 to $750 million, including the period of time prior to the closing of the acquisition, and $620 to $670 million on a reported basis.
  • Gross margin to include an incremental $75 million of air freight in the first half of 2022.
  • Adjusted operating margin to be approximately 26%.
  • Non-GAAP adjustments of $60 million in SG&A costs, primarily associated with the HEYDUDE acquisition, and an additional $75 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 acquisition.
  • Combined GAAP tax rate of approximately 25% and Non-GAAP effective tax rate of approximately 22%.
  • Adjusted diluted earnings per share of $9.70 to $10.25.
  • Capital expenditures of approximately $170 to $200 million, primarily for supply chain investments to support growth.

Conference Call Information:

A conference call to discuss fourth quarter and full year 2021 results is scheduled for today, February 16, 2022, at 8:30 am ET. To receive conference call details, please register at the Investor Relations section of the Crocs website, investors.crocs.com. The webcast will also be available live and on replay through February 16, 2023 at this site.

About Crocs, Inc.:

Crocs, Inc. (Nasdaq: CROX) is a world leader in innovative casual footwear for women, men, and children, combining comfort and style with a value that consumers know and love. The vast majority of shoes within Crocs' collection contains Croslite™ material, a proprietary, molded footwear technology, delivering extraordinary comfort with each step.

In 2022, Crocs declares that expressing yourself and being comfortable are not mutually exclusive. To learn more about Crocs or our global Come As You Are™ campaign, please visit www.crocs.com or follow @Crocs on Facebook, Instagram and Twitter.

Forward Looking Statements:

This press release includes estimates, projections, and statements relating to our plans, commitments, objectives, and expectations that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934.

These statements include, but are not limited to, statements regarding the anticipated consummation of the acquisition of HEYDUDE and the timing and benefits thereof, Crocs' strategy, plans, objectives, expectations (financial or otherwise) and intentions, future financial results and growth potential, statements regarding full year and first quarter 2022 financial outlook and future profitability, cash flows, and brand strength, anticipated product portfolio and our ability to create and deliver shareholder value. These statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to be materially different from any future results, performances, or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to, the following: risks related to Crocs' ability to complete the HEYDUDE transaction on the proposed terms and schedule or at all; risks associated with acquisitions, such as the risk that the business will not be integrated successfully, that such integration may be more difficult, time-consuming, or costly than expected or that the expected benefits of the transaction will not occur; risks related to future opportunities and plans for HEYDUDE and its products, including uncertainty of the expected financial performance of HEYDUDE and its products; the COVID-19 pandemic and related government, private sector, and individual consumer responsive actions; current global financial conditions, including economic impacts resulting from the COVID-19 pandemic; the effect of competition in our industry; our ability to effectively manage our future growth or declines in revenues; changing consumer preferences; our ability to maintain and expand revenues and gross margin; our ability to accurately forecast consumer demand for our products; our ability to successfully implement our strategic plans; our ability to develop and sell new products; our ability to obtain and protect intellectual property rights; the effect of potential adverse currency exchange rate fluctuations and other international operating risks and other factors described in our most recent Annual Report on Form 10-K under the heading "Risk Factors" and our subsequent filings with the Securities and Exchange Commission. Readers are encouraged to review that section and all other disclosures appearing in our filings with the Securities and Exchange Commission.

All information in this document speaks as of February 16, 2022. We do not undertake any obligation to update publicly any forward-looking statements, whether as a result of the receipt of new information, future events, or otherwise, except as required by applicable law.

Category:Investors

CROCS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)



Three Months Ended
December 31,


Year Ended

December 31,


2021


2020


2021


2020

Revenues

$      586,626


$      411,506


$   2,313,416


$   1,385,951

Cost of sales

214,602


182,422


893,196


636,003

Gross profit

372,024


229,084


1,420,220


749,948

Selling, general and administrative expenses

212,036


164,453


737,156


535,824

Income from operations

159,988


64,631


683,064


214,124

Foreign currency income (loss), net

(56)


306


(140)


(1,128)

Interest income

62


26


775


215

Interest expense

(8,817)


(1,149)


(21,647)


(6,742)

Other income (loss), net

1,782


(391)


1,797


510

Income before income taxes

152,959


63,423


663,849


206,979

Income benefit

(1,894)


(119,907)


(61,845)


(105,882)

Net income

$      154,853


$      183,330


$      725,694


$      312,861

Net income per common share:








Basic

$            2.63


$            2.75


$          11.62


$            4.64

Diluted

$            2.57


$            2.69


$          11.39


$            4.56

Weighted average common shares outstanding:








Basic

58,847


66,729


62,464


67,386

Diluted

60,138


68,054


63,718


68,544









Gross margin

63.4         %


55.7         %


61.4         %


54.1         %

Operating margin

27.3         %


15.7         %


29.5         %


15.4         %

Selling, general and administrative expenses as a percentage of revenues

36.1         %


40.0         %


31.9         %


38.7         %

 

CROCS, INC. AND SUBSIDIARIES

EARNINGS PER SHARE

(in thousands, except per share data)



Three Months Ended
December 31,


Year Ended

December 31,


2021


2020


2021


2020

Numerator:








Net income

$         154,853


$         183,330


$         725,694


$         312,861

Denominator:








Weighted average common shares outstanding - basic

58,847


66,729


62,464


67,386

Plus: Dilutive effect of stock options and unvested restricted stock units

1,291


1,325


1,254


1,158

Weighted average common shares outstanding - diluted

60,138


68,054


63,718


68,544









Net income per common share:








Basic

$               2.63


$               2.75


$             11.62


$               4.64

Diluted

$               2.57


$               2.69


$             11.39


$               4.56

 

CROCS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and par value amounts)



December 31,


2021


2020

ASSETS




Current assets:




Cash and cash equivalents

$          213,197


$          135,802

Restricted cash — current

65


1,542

Accounts receivable, net of allowances of $20,715 and $21,093, respectively

182,629


149,847

Inventories

213,520


175,121

Income taxes receivable

22,301


1,857

Other receivables

12,252


10,816

Prepaid expenses and other assets

22,605


17,856

Total current assets

666,569


492,841

Property and equipment, net

108,398


57,467

Intangible assets, net

28,802


37,636

Goodwill

1,600


1,719

Deferred tax assets, net

567,201


350,784

Restricted cash

3,663


1,929

Right-of-use assets

160,768


167,421

Other assets

8,067


8,926

Total assets

$       1,545,068


$       1,118,723





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$          162,145


$          112,778

Accrued expenses and other liabilities

166,887


126,704

Income taxes payable

16,279


5,038

Current operating lease liabilities

42,932


47,064

Total current liabilities

388,243


291,584

Long-term income taxes payable

219,744


205,974

Long-term borrowings

771,390


180,000

Long-term operating lease liabilities

149,237


146,401

Other liabilities

2,372


4,131

Total liabilities

1,530,986


828,090

Commitments and contingencies




Stockholders' equity:




Common stock, par value $0.001 per share, 105.9 million and 105.0 million issued, 58.3 million and 65.9 million shares outstanding, respectively

106


105

Treasury stock, at cost, 47.6 million and 39.1 million shares, respectively

(1,684,262)


(688,849)

Additional paid-in capital

496,036


482,385

Retained earnings

1,279,040


553,346

Accumulated other comprehensive loss

(76,838)


(56,354)

Total stockholders' equity

14,082


290,633

Total liabilities and stockholders' equity

$       1,545,068


$       1,118,723

 

CROCS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)



Year Ended December 31,


2021


2020

Cash flows from operating activities:




Net income

$          725,694


$          312,861

Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation and amortization

31,976


27,619

Operating lease cost

58,283


61,583

Inventory donations

1,264


8,994

Provision (recovery) for doubtful accounts, net

(2,629)


5,779

Share-based compensation

38,122


16,361

Asset impairments


21,071

Deferred taxes

(241,283)


(325,061)

Other non-cash items

264


5,307

Changes in operating assets and liabilities:




Accounts receivable, net of allowances

(35,063)


(47,045)

Inventories

(43,063)


(13,462)

Prepaid expenses and other assets

(6,212)


5,007

Accounts payable

34,868


23,229

Accrued expenses and other liabilities

38,448


22,358

Right-of-use assets and operating lease liabilities

(52,752)


(61,178)

Income taxes

19,248


203,479

Cash provided by operating activities

567,165


266,902

Cash flows from investing activities:




Purchases of property, equipment, and software

(55,916)


(42,033)

Proceeds from disposal of property and equipment

6


463

Other

(15)


(192)

Cash used in investing activities

(55,925)


(41,762)

Cash flows from financing activities:




Proceeds from notes issuance

700,000


Proceeds from bank borrowings

390,000


210,000

Repayments of bank borrowings

(485,000)


(235,000)

Deferred debt issuance costs

(14,755)


(518)

Dividends — Series A convertible preferred stock


Repurchases of common stock

(1,000,000)


(170,832)

Repurchases of common stock for tax withholding

(20,119)


(3,060)

Other

236


1,372

Cash used in financing activities

(429,638)


(198,038)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

(3,950)


126

Net change in cash, cash equivalents, and restricted cash

77,652


27,228

Cash, cash equivalents, and restricted cash — beginning of year

139,273


112,045

Cash, cash equivalents, and restricted cash — end of year

$          216,925


$          139,273





Cash paid for interest

$            10,210


$              6,658

Cash paid for income taxes

159,680


20,816

Accrued purchases of property, equipment, and software

15,831


4,222

CROCS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

In addition to financial measures presented on the basis of accounting principles generally accepted in the United States of America ("GAAP"), we present "Non-GAAP cost of sales," "Non-GAAP gross profit," "Non-GAAP gross margin," "Non-GAAP selling, general, and administrative expenses," "Non-GAAP income from operations and operating margin," "Non-GAAP income tax expense (benefit) and effective tax rate," "Non-GAAP net income," "Non-GAAP weighted average common shares outstanding - basic and diluted," and "Non-GAAP basic and diluted net income per common share," which are non-GAAP financial measures. We also present future period guidance for "Non-GAAP adjusted operating margin" and "Non-GAAP effective tax rate." Non-GAAP results and guidance exclude the impact of items that management believes affect the comparability or underlying business trends in our consolidated financial statements for the periods presented.

We also present certain information related to our current period results of operations through "constant currency," which is a non-GAAP financial measure and should be viewed as a supplement to our results of operations and presentation of reportable segments under GAAP. Constant currency represents current period results that have been retranslated using exchange rates used in the prior year comparative period. We believe the use of constant currency enhances the visibility of the underlying business trends excluding the impact of foreign currency exchange rate fluctuations.

We use non-GAAP results to assist in comparing business trends from period to period on a consistent basis in communications with the board of directors, stockholders, analysts, and investors concerning our financial performance. We believe that these non-GAAP measures are useful to investors and other users of our consolidated financial statements as an additional tool for evaluating operating performance and trends. For the three months and year ended December 31, 2021, we believe it is helpful to evaluate our results excluding the impacts of various adjustments relating to special or nonrecurring items. Investors should not consider these non-GAAP measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

CROCS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES


Non-GAAP cost of sales, gross profit, and gross margin reconciliation:



Three Months Ended
December 31,


Year Ended

December 31,


2021


2020


2021


2020


(in thousands)

GAAP revenues

$      586,626


$      411,506


$   2,313,416


$   1,385,951









GAAP cost of sales

$      214,602


$      182,422


$      893,196


$      636,003

New distribution centers (1)

(1,705)


(1,550)


(5,836)


(4,186)

COVID-19 inventory write-off (2)




(2,396)

Other




(119)

Total adjustments

(1,705)


(1,550)


(5,836)


(6,701)

Non-GAAP cost of sales

$      212,897


$      180,872


$      887,360


$      629,302









GAAP gross profit

$      372,024


$      229,084


$   1,420,220


$      749,948

GAAP gross margin

63.4 %


55.7 %


61.4 %


54.1 %









Non-GAAP gross profit

$      373,729


$      230,634


$   1,426,056


$      756,649

Non-GAAP gross margin

63.7 %


56.0 %


61.6 %


54.6 %


(1)  Represents expenses, including expansion costs, related to our distribution centers in Dayton, Ohio and Dordrecht, the Netherlands and initial costs for our new third-party operated distribution center in Chiba, Japan.

(2)  Represents an inventory write-off in our Asia Pacific segment associated with the impact of COVID-19.

 

Non-GAAP selling, general and administrative expenses reconciliation:



Three Months Ended
December 31,


Year Ended

December 31,


2021


2020


2021


2020


(in thousands)

GAAP revenues

$      586,626


$      411,506


$   2,313,416


$   1,385,951









GAAP selling, general and administrative expenses

$      212,036


$      164,453


$      737,156


$      535,824

HEYDUDE acquisition costs

(6,362)



(6,362)


Asset impairments (1)


(21,071)



(21,071)

Donations of inventory


70



(9,900)

COVID-19 impact of bad debt expense (2)


315



(4,118)

COVID-19 severance costs




(2,403)

Duplicate headquarters rent (3)


(154)



(1,274)

Other COVID-19 costs (4)


(18)



(845)

Other (5)


8



(2,125)

Total adjustments

(6,362)


(20,850)


(6,362)


(41,736)

Non-GAAP selling, general and administrative expenses (6)

$      205,674


$      143,603


$      730,794


$      494,088









GAAP selling, general and administrative expenses as a percent of revenues

36.1         %


40.0         %


31.9         %


38.7         %

Non-GAAP selling, general and administrative expenses as a percent of revenues

35.1         %


34.9         %


31.6         %


35.6         %


(1)  Represents impairments to our long-lived assets for a retail store in New York City and for our former corporate headquarters in Niwot, Colorado.

(2)  Represents bad debt expense associated with the impact of COVID-19 on wholesale partners in our Asia Pacific and Americas segments.

(3)  Represents ongoing duplicate rent costs associated with our move to our new headquarters in Broomfield, Colorado, while we conclude the lease for our former headquarters.

(4)  Represents costs incurred in response to COVID-19, including hazard pay, cleaning costs, and legal costs.

(5)  Represents non-recoverable duties, non-recurring costs related to the closure of company-owned retail stores in Australia, employee severance costs, and various other immaterial items.

(6)  Non-GAAP selling, general and administrative expenses are presented gross of tax.

 

Non-GAAP income from operations and operating margin reconciliation:



Three Months Ended
December 31,


Year Ended

December 31,


2021


2020


2021


2020


(in thousands)

GAAP revenues

$      586,626


$      411,506


$   2,313,416


$   1,385,951









GAAP income from operations

$      159,988


$        64,631


$      683,064


$      214,124

Non-GAAP cost of sales adjustments (1)

1,705


1,550


5,836


6,701

Non-GAAP selling, general and administrative expenses adjustments (2)

6,362


20,850


6,362


41,736

Non-GAAP income from operations

$      168,055


$        87,031


$      695,262


$      262,561









GAAP operating margin

27.3         %


15.7         %


29.5         %


15.4         %

Non-GAAP operating margin

28.6         %


21.1         %


30.1         %


18.9         %


(1)  See 'Non-GAAP cost of sales and gross margin reconciliation' above for more details.

(2)  See 'Non-GAAP selling, general and administrative expenses reconciliation' above for more details.

 

Non-GAAP income tax expense (benefit) and effective tax rate reconciliation:



Three Months Ended
December 31,


Year Ended

December 31,


2021


2020


2021


2020


(in thousands)

GAAP income from operations

$      159,988


$        64,631


$      683,064


$      214,124

GAAP income before income taxes

152,959


63,423


663,849


206,979









Non-GAAP income from operations (1)

$      168,055


$        87,031


$      695,262


$      262,561

GAAP non-operating income (expenses):








Foreign currency income (loss), net

(56)


306


(140)


(1,128)

Interest income

62


26


775


215

Interest expense

(8,817)


(1,149)


(21,647)


(6,742)

Other income (loss), net

1,782


(391)


1,797


510

Non-GAAP income before income taxes

$      161,026


$        85,823


$      676,047


$      255,416









GAAP income tax benefit

$         (1,894)


$     (119,907)


$       (61,845)


$     (105,882)

Tax effect of non-GAAP operating adjustments

439


6,014


1,477


12,123

Impact of intra-entity IP transfers (2)

33,076


127,718


206,579


127,718

Non-GAAP income tax expense

$        31,621


$        13,825


$      146,211


$        33,959









GAAP effective income tax rate

(1.2)         %


(189.1)         %


(9.3)         %


(51.2)         %

Non-GAAP effective income tax rate

19.6         %


16.1         %


21.6         %


13.3          %


(1)  See 'Non-GAAP income from operations and operating margin reconciliation' above for more details.

(2)  In the fourth quarter of 2020, and subsequently in the fourth quarter of 2021, we made changes to our international legal structure, including an intra-entity transfer of certain intellectual property rights, primarily to align with current and future international operations. The transfers resulted in a step-up in the tax basis of intellectual property rights and correlated increases in foreign deferred tax assets based on the fair value of the transferred intellectual property rights. This adjustment represents the current period impact of these transfers, including the release of the 2020 valuation allowance as a result of a tax law change.

 

Non-GAAP earnings per share reconciliation:



Three Months Ended
December 31,


Year Ended

December 31,


2021


2020


2021


2020


(in thousands, except per share data)

Numerator:








GAAP net income

$          154,853


$          183,330


$          725,694


$          312,861

Non-GAAP cost of sales adjustments (1)

1,705


1,550


5,836


6,701

Non-GAAP selling, general and administrative expenses adjustments (2)

6,362


20,850


6,362


41,736

Non-GAAP other income adjustment (3)




(919)

Tax effect of non-GAAP adjustments (4)

(33,515)


(133,732)


(208,056)


(139,841)

Non-GAAP net income

$          129,405


$            71,998


$          529,836


$          220,538

Denominator:








GAAP weighted average common shares outstanding - basic

58,847


66,729


62,464


67,386

Plus: GAAP dilutive effect of stock options and unvested restricted stock units

1,291


1,325


1,254


1,158

GAAP weighted average common shares outstanding - diluted

60,138


68,054


63,718


68,544









GAAP net income per common share:








Basic

$                 2.63


$                 2.75


$              11.62


$                 4.64

Diluted

$                 2.57


$                 2.69


$              11.39


$                 4.56









Non-GAAP net income per common share:








Basic

$                 2.20


$                 1.08


$                 8.48


$                 3.27

Diluted

$                 2.15


$                 1.06


$                 8.32


$                 3.22


(1)  See 'Non-GAAP cost of sales, gross profit, and gross margin reconciliation' above for more information.

(2)  See 'Non-GAAP selling, general and administrative expenses reconciliation' above for more information.

(3)  Represents a prior year fair value adjustment associated with our donations of inventory.

(4)  See 'Non-GAAP income tax expense (benefit) and effective tax rate reconciliation' above for more information.

 

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL GUIDANCE


First Quarter 2022:



Approximately:

Non-GAAP operating margin reconciliation:


GAAP operating margin

10%

Non-GAAP adjustments, primarily associated with the HEYDUDE acquisition (1)

12%

  Non-GAAP operating margin

22%



Full Year 2022:



Approximately:

Non-GAAP operating margin reconciliation:


GAAP operating margin

22%

Non-GAAP adjustments, primarily associated with the HEYDUDE acquisition (1)

4%

  Non-GAAP operating margin

26%

Non-GAAP effective tax rate reconciliation:


GAAP effective tax rate

25%

Non-GAAP adjustments associated with amortization of intellectual property (2)

(3%)

  Non-GAAP effective tax rate

22%

Non-GAAP diluted earnings per share reconciliation:


GAAP diluted earnings per share

$7.70 to $8.25

Non-GAAP adjustments, primarily associated with the HEYDUDE acquisition and amortization of intellectual property

$2.00

  Non-GAAP diluted earnings per share

$9.70 to $10.25


(1)  In the first quarter of 2022, we expect to incur $30 million in SG&A costs, primarily associated with the HEYDUDE acquisition, and 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. For the full year 2022, we expect to incur $60 million in SG&A costs, primarily associated with the HEYDUDE acquisition, and an additional $75 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 acquisition.

(2)  In the fourth quarter of 2020, and subsequently in the fourth quarter of 2021, we made changes to our international legal structure, including an intra-entity transfer of certain intellectual property rights, primarily to align with current and future international operations. This adjustment represents the amortization of the deferred tax asset related to these intellectual property rights in this period.

 

CROCS, INC. AND SUBSIDIARIES

REVENUES BY CHANNEL



Three Months Ended
December 31,


Year Ended

December 31,


% Change


Constant Currency

% Change (1)


2021


2020


2021


2020


Q4 '21-'20


2021-2020


Q4 '21-'20


2021-2020


($ in thousands)

Wholesale:
















Americas

$    201,100


$    134,671


$    727,264


$    390,930


49.3 %


86.0 %


49.4 %


86.1 %

Asia Pacific

26,237


23,712


184,335


133,416


10.6 %


38.2 %


13.1 %


34.3 %

EMEA

39,752


31,902


262,395


168,410


24.6 %


55.8 %


29.2 %


50.4 %

Other businesses

13


57


87


163


(77.2) %


(46.6) %


(77.2) %


(46.6) %

Total wholesale

267,102


190,342


1,174,081


692,919


40.3 %


69.4 %


41.5 %


67.4 %

Direct-to-consumer:
















Americas

267,916


175,587


879,748


472,683


52.6 %


86.1 %


52.5 %


85.7 %

Asia Pacific

30,852


28,067


165,825


145,099


9.9 %


14.3 %


13.6 %


9.8     %

EMEA

20,756


17,510


93,762


75,250


18.5 %


24.6 %


22.2 %


22.2 %

Total direct-to-consumer

319,524


221,164


1,139,335


693,032


44.5 %


64.4 %


45.2 %


62.9 %

Total revenues

$    586,626


$    411,506


$ 2,313,416


$ 1,385,951


42.6 %


66.9 %


43.5 %


65.2 %

Total by segment:
















Americas

$    469,016


$    310,258


$ 1,607,012


$    863,613


51.2 %


86.1 %


51.2 %


85.9 %

Asia Pacific

57,089


51,779


350,160


278,515


10.3 %


25.7 %


13.5 %


21.5 %

EMEA

60,508


49,412


356,157


243,660


22.5 %


46.2 %


26.8 %


41.7 %

Other businesses

13


57


87


163


(77.2) %


(46.6) %


(77.2) %


(46.6) %

Total revenues

$    586,626


$    411,506


2,313,416


$ 1,385,951


42.6 %


66.9 %


43.5 %


65.2 %


(1) Reflects year over year change as if the current period results were in constant currency, which is a non-GAAP financial measure. See "Reconciliation of GAAP Measures to Non-GAAP Measures" for more information.

 

CROCS, INC. AND SUBSIDIARIES

RETAIL STORE COUNTS



September 30, 2021


Opened


Closed/Transferred


December 31, 2021

Operating segment:








Americas

164


9



173

Asia Pacific

154


4


5


153

EMEA

46


1



47

  Total

364


14


5


373


December 31, 2020


Opened


Closed/Transferred


December 31, 2021

Operating segment:








Americas

165


9


1


173

Asia Pacific

137


23


7


153

EMEA

49


1


3


47

  Total

351


33


11


373

 

CROCS, INC. AND SUBSIDIARIES

DIGITAL SALES PERCENTAGE AND DIRECT-TO-CONSUMER COMPARABLE SALES


Digital sales, which includes sales through our company-owned website, third party marketplaces, and e-tailers, as a percent of total revenues, by operating segment were:



Three Months Ended
December 31,


Year Ended

December 31,


2021


2020


2021


2020

Digital sales as a percent of total revenues (1):








  Americas

38.9         %


37.9         %


33.5         %


38.5         %

  Asia Pacific

37.0         %


40.2         %


37.1         %


39.2         %

  EMEA

53.5         %


59.8         %


50.7         %


54.8         %

  Global

40.3         %


40.8         %


36.7         %


41.5         %


(1)  The 2020 digital sales percentages were impacted to some extent by the COVID-19 pandemic, which increased digital penetration when brick-and-mortar stores were closed during such time-frame. Nonetheless, we expect digital sales to continue to increase going forward.

 

Direct-to-consumer ("DTC") comparable sales by reportable operating segment are as follows:



Constant Currency (1)


Three Months Ended
December 31,


2021


2020

DTC comparable sales (includes retail and e-commerce): (2)




Americas

52.5         %


84.4         %

Asia Pacific

9.5         %


4.5         %

EMEA

23.4         %


33.3         %

Global

44.9         %


63.8         %


(1)  Reflects period over period change as if the current period results were in constant currency, which is a non-GAAP financial measure. See "Reconciliation of GAAP to Non-GAAP Measures" for more information.

(2)  Comparable store status, as included in the DTC comparable sales figures above, is determined on a monthly basis. Comparable store sales include the revenues of stores that have been in operation for more than twelve months. Stores in which selling square footage has changed more than 15% as a result of a remodel, expansion, or reduction are excluded until the thirteenth month in which they have comparable prior year sales. Temporarily closed stores are excluded from the comparable store sales calculation during the month of closure and in the same month in the following year. Location closures in excess of three months are excluded until the thirteenth month post re-opening. E-commerce comparable revenues are based on same site sales period over period. As a result of temporary store closures across the globe due to COVID-19, primarily in the year ended December 31, 2020, we have not presented direct-to-consumer comparable sales for the years ended December 31, 2021 and 2020.

 


Investor Contact:

Cori Lin, Crocs, Inc.



(303) 848-5053



clin@crocs.com 





PR Contact:

Melissa Layton, Crocs, Inc.



(303) 848-7885



mlayton@crocs.com

 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/crocs-inc-reports-record-annual-revenues-of-2-3-billion-growing-67-over-2020--301483416.html

SOURCE Crocs, Inc.

Categories: Press Releases
All Press Releases