Crocs expects to reach $5B in sales by 2026

BROOMFIELD — Crocs Inc. (Nasdaq: CROX) saw its stock snap upward in earlier trading Thursday as the company posted higher than anticipated revenue and earnings figures, increased its full-year guidance and declared that the brand will reach the $5 billion mark in sales by 2026.

Revenues were $985.1 million in the most-recent period, an increase of 57.4% from the third quarter of 2021.

Income from operations were up 30% year over year at $264.1 million, and adjusted diluted earnings per share increased 20.2% to $2.97 compared to $2.47 in 2021.

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“Our exceptional third quarter results, including record revenue and industry-leading adjusted operating margin of 28% are a testament to the strength of the Crocs and Heydude brands,” Crocs CEO Andrew Rees said in a prepared statement. “We are raising 2022 guidance following our strong back-to-school performance and 20% constant currency revenue growth in the Crocs brand. We are confident in our ability to continue to gain significant market share, deliver best-in-class profitability, and generate strong cash flow.”

The company is projecting full-year 2022 sales of $3.455 to $3.520 billion, up 49% to 52% over last year’s performance.

Looking ahead, not only does Crocs expect to hit $5 billion in sales by 2026, the company also believes Heydude will account for $1 billion in sales in 2023.

Crocs stock closed Thursday at $76.60 per share. It is down 46% year-to-date.