Crocs tops Wall Street projections, expects $3.5B in sales in 2022

BROOMFIELD — Crocs Inc. (Nasdaq: CROX) stomped on Wall Street’s earning projections for the first quarter of the year as the newly acquired Heydude footwear line significantly boosted revenues.

Consolidated revenues were $660.1 million in the most recent period, up 43.5% from the first quarter of 2021.

Heydude accounted for $114.9 million of those sales, tallied between the closing of the acquisition on Feb. 17 through the end of the quarter on March 31.

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Direct-to-consumer and online sales were up significantly in the first quarter of 2022. 

Despite the strong sales figures, income from operations declined to $118.7 million from $124.7 million for the same period last year.

Crocs attributes the decrease to increased air-freight costs and acquisition expenses.

Still, the adjusted diluted earnings per share of $2.05 per share was more than the $1.55 per share that FactSet analysts predicted.

Crocs is projecting full-year sales of $3.5 billion, up more than 50% compared with 2021.

“Our first quarter revenue growth of 47% on a constant currency basis is a testament to the underlying strength of the Crocs and Heydude brands,” Crocs CEO Andrew Rees said in a prepared statement. “Consumer demand remains strong giving us the confidence to raise our full year outlook for revenue to approximately $3.5 billion, adjusted operating margin to 26% to 27%, and adjusted diluted earnings per share to $10.05 to $10.65.”

Crocs’ stock price finished trading Thursday at $65.63, down 9.11%

This article was first published by BizWest, an independent news organization, and is published under a license agreement. © 2022 BizWest Media LLC.