Crocs’ Sandals Will Surpass Clogs in Growth Rate
Looking ahead after a record FY2020 where total revenues grew 13 percent to nearly $1.4 billion and digital sales jumped 50 percent (92 percent in Q4), Crocs projects its sandals business will return to growth this year. Revenue from sandals is forecast to eventually increase at a higher percentage than the brand’s mainstay clogs segment that “has been growing tremendously” since 2019 and is forecast to be “essentially out of stock” in Q1/21. Impacted by the COVID-19 pandemic, sales of Crocs’ sandals slipped 19 percent in 2020.
Another product silhouette that may gain traction at Crocs in late 2021/early 2022 is the boot. Staffers have been showing retailers a new comfort warm boot for next winter and getting good feedback, according to CEO Andrew Rees.
As for more details on Q4/20 and the company’s outlook for FY21, Crocs sales doubled in the Americas’ region during the final period to $310.3 million, Retail comps rose 54 percent on higher traffic and increased conversion. Regional ecommerce sales rose 125 percent and wholesale increased nearly 131 percent, stronger-than-forecast, on gains from ecommerce and the brand’s top 20 brick-and-mortar partners.
In FY21, Crocs’ is forecast 20-25 percent topline expansion, barring any further significant closures related to the pandemic. First quarter sales are forecast to grow in all regions, producing an adjusted operating margin of 17-18 percent and revenue growth of 40-50 percent over the year-ago period.