Crocs CEO Andrew Rees told analysts last week that the company’s acquisition of the Heydude footwear brand nearly a year ago is “exceeding expectations” as it begins implementing a growth plan for the Heydude business, which accounted for 27 percent of Crocs’ FY22 revenues on a pro forma basis or approximately $959.8 million. Heydude, which also delivered $275 million in annual adjusted operating income for the company, realized 58 percent growth in digital sales to represent about $363 million (37.8%) last year.

In FY22, Crocs increased the Heydude staff by more than 150 positions, expanded the brand’s manufacturing footprint, grew its distribution base, and spent almost $60 million in H2 marketing the brand.   

The addition of Heydude to its portfolio is enabling Crocs to access an addressable, global market of approximately $160 billion, four times larger than the company’s target audience previously.

In Q4, Heydude sales rose 36.6 percent year-over-year to $279 million with digital accounting for nearly 52 percent of revenues. 

Overall, FY22 revenues for Crocs Inc. increased by 54 percent in FY22 to a record $3.55 billion but net profit dipped by 26 percent to $540.2 million. Annual North American revenues rose by 6 percent on a constant currency basis to $1,644.6 million. Crocs is forecasting 10 to 13 percent revenue expansion in FY23 to between $3.9 to $4.0 billion with Heydude sales expected to increase in the mid-20 percent range.