No items found.

Digital, Heydude Will Drive Crocs to $6 Billion in Revenues

Share:

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.

Also in the 

Feb 23, 2022

 Newsletter

Also in the 

 

 Issue