Crocs posts record 2022 revenues

By

Benjamin Fitzgerald

Published
Feb 16, 2023

Crocs Inc announced on Thursday record-breaking revenues for the fiscal year 2022, on the back of a strong fourth quarter which saw sales grow 61% to ​$945.2 million.

The Broomfield, Colorado-based company said revenues for the full-year totalled ​$3.6 billion, up 54%, compared to 2021. Crocs brand revenues increased 14.9%, to $2.7 billion. Wholesale revenues increased 17.3%, while DTC revenues rose 12.5%.

In 2022, Crocs North America revenues increased 6% to $1.6 billion, while DTC comparable sales were 11.5%.
Asia Pacific revenues surged 47% to $ 473.9 million, while Europe, Middle East, Africa, and Latin America grew 47% to $540.5 million.

HeyDude revenues totalled $895.9 million for the full-year period, following the closing of the acquisition on February 17, 2022 with wholesale revenues of $574.1 million and DTC revenues of $321.7 million.

Overall, ​income from operations increased 24.5% to $850.8 million in 2022.

"Consumer demand for the Crocs and HeyDude brands has been exceptional, fueling record 2022 revenues for both brands at a combined $3.6 billion and top-tier adjusted operating margin of 28%," said Andrew Rees, chief executive officer. "We anticipate another record year in 2023 with growth expected to be led by sandals and international for the Crocs Brand and increased U.S. market penetration for HeyDude."

"Crocs, Inc. has industry-leading operating margins and generates robust cash flow as a result of the simplicity of our product lines and the high penetration of molded product. Post the acquisition of HeyDude, we reduced outstanding debt by $550 million and gross leverage to 2.25 times," said Anne Mehlman, executive vice president and chief financial officer.  "We remain confident in gross leverage being below 2 times by the middle of this year giving us greater flexibility with capital allocation."

Looking ahead, Crocs said it expects first-quarter 2023 revenues to grow approximately 27% to 30%, compared to first-quarter 2022 revenues of $660.1 million.