Digital, Heydude Will Drive Crocs to $6 Billion in Revenues
Crocs intends to hit an annual sales target of $6 billion in 2026. More immediately, the company, expected to close on its Heydude acquisition shortly, is forecasting more than 20 percent topline growth in 2022 to more than $2.75 billion. That total excludes the Heydude brand, which is projected to contribute $620-670 million on a pro forma basis. The two brands together are projected to help Crocs reach $3.4 billion in reported revenues this year with an adjusted operating margin of about 26 percent.
To pay for the $2.5 billion Heydude acquisition announced in December, CROX is issuing 2.85 million shares to one seller and has secured a $2 million term loan. More details on the deal are expected once it closes.
“We’re excited about the potential of Heydude and incredibly confident in our ability to build a $1 billion brand by 2024,” CEO Andrew Rees told investors last week.
In Q1, Crocs is forecasting topline growth of 31-37 percent to a range of $605-630 million and $520-535 million, excluding Heydude, to represent 13-16 percent organic growth.
Direct-To-Consumer and wholesale revenues were about equal for Crocs in 2021. On a two-year basis, digital penetration rose to 37 percent from 31 percent. For the full year, D-T-C sales rose 64 percent to $1,139.3 million while wholesale revenues jumped 69 percent to $1,174.1 million. Americas’ revenues increased 86 percent on a constant currency basis to $1,607 million. The company sold over 100 million pairs of footwear in 2021, fueled by clogs that accounted for 80 percent of the topline versus 72 percent in 2020.