Crocs Focused on $6 Billion in Annual Revenues
The topline objective of $6 billion in annual revenues for Crocs includes $5 billion in sales from the Crocs brand and $1 billion or more from recently acquired Heydude. Crocs is making investments to help push digital to 50 percent of total revenues, and it wants to quadruple its sandals business to more than $1.2 billion. In Asia-Pacific, Crocs wants to increase its sales contribution from China to 10 percent of all revenues, up from less than 5 percent currently, and expand sales in all of Asia to about 25 percent of total sales.
Last week, in announcing a 44 percent increase in consolidated first quarter revenues to $660.1 million, Crocs raised its FY22 total revenue guidance to $3.5 billion from $3.4 billion with Crocs’ brand revenues forecast to rise more than 20 percent and Heydude’s annualized sales range pegged at $840-890 million (a $750-800 million contribution to the topline). First quarter net income dipped 26 percent to $72.76 million and gross margin declined 580 basis points to 49.2 percent, the latter negatively impacted by higher air freight costs. But Crocs realized a 19 percent increase in wholesale revenues to $344.3 million and a 19.6 percent improvement in average selling price (ASP) during the period due to a less promotional selling environment.