NASDAQ$CROX

Crocs Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Crocs reported record revenues and industry-leading operating margin.

Crocs, Inc. announced exceptional third quarter results with a 73% increase in revenue compared to 2020 and an industry-leading operating margin of 32%. The company is managing global supply chain disruptions and expects revenue growth to exceed 20% in 2022.

  • Record revenues of $625.9 million, a 73.0% increase compared to 2020.
  • Operating income more than doubled to $203.1 million, with operating margin expanding to 32.4%.
  • Digital sales grew 68.9%, representing 36.8% of revenues.
  • Revenue growth was strong in all regions, with the Americas up 94.5%, Asia Pacific up 21.2%, and EMEA up 42.8% on a constant currency basis.

Headline financials

Total Revenue

$626M

Previous: $362M+73.0%
EPS (adj)

$2.47

Previous: $0.94+162.8%
Capital Expenditures

-$35.8M

Previous: -$33.2M-7.7%
Free Cash Flow

$118M

Previous: $28.7M+310.3%
Net Income

$153M

Previous: $61.9M+148.0%
Operating Income

$203M

Previous: $72.1M+181.7%
Gross Profit

$400M

Previous: $207M+93.4%
Cash & Equivalents

$437M

Previous: $124M+253.3%
Total Assets

$1.75B

Previous: $802M+117.6%
Stock-Based Comp

$10.6M

Previous: $4.87M+117.6%

Revenue & EPS history

Crocs · Revenue · Quarterly

$626M

Q3 2021+73%vs Q3 2020
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Crocs · $247M total across 1 segment · Q3 2023

  • HEYDUDE Brand
    $247M-8.4%

Forward guidance

Crocs expects revenue growth to be between 62% and 65% for full year 2021 compared to 2020. For 2022, the company expects revenue growth to exceed 20% compared to 2021.

Tailwinds

  • Revenue growth to be between 62% and 65% compared to 2020 revenues of $1,386.0 million.
  • Non-GAAP operating margin of approximately 28%.
  • Non-GAAP effective tax rate of approximately 23%.
  • Capital expenditures of approximately $75 million for supply chain investments to support growth.
  • Revenue growth to exceed 20% compared to 2021.

Headwinds

  • Non-GAAP adjustments of approximately $8 to $10 million related to distribution center investments that will negatively impact gross margin.
  • Gross margin to include an incremental $75 million of air freight compared to 2021.
  • Global Supply Chain Disruptions During the third quarter our business was impacted by Vietnamese factory closures and widespread disruption in the global supply chain.
  • Despite ongoing global supply challenges we remain confident in our ability to deliver upon our short- and long-term goals.
  • To minimize the impact of this disruption, we have taken swift action to shift production, improve factory throughput, leverage air freight, and strategically allocate units.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

-0.2%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+3.5%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+27.3%

Q3 2022

Best reaction

-23.3%

Q2 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.6%+2.8%+18.4%
Q4 2025+19.0%+20.8%-5.8%
Q3 2025-2.4%-7.1%+0.3%
Q1 2025+9.8%+19.4%+0.7%
Q4 2024+23.9%+20.8%+11.0%
Q3 2024-21.0%-23.1%-23.5%
Q2 2024-8.2%-5.7%+8.8%
Q1 2024+6.9%+13.1%+17.2%
Q4 2023+9.8%+6.7%+18.3%
Q3 2023-4.0%-3.4%+21.9%
Q2 2023-9.7%-10.7%-20.2%
Q1 2023-16.3%-18.7%-27.8%
Q4 2022+4.6%-5.5%-4.6%
Q3 2022+27.3%+23.7%+55.1%
Q2 2022-4.9%-8.3%-8.2%
Q1 2022-15.7%-24.9%-15.7%
Q4 2021-18.9%-21.7%-17.9%
Q3 2021+10.2%+13.5%+29.1%
Q2 2021+9.4%+7.3%+18.3%
Q1 2021+16.0%+18.0%+20.0%
Q4 2020-6.5%-7.7%-6.5%
Q3 2020+3.2%+0.2%+14.8%
Q2 2020-3.8%-2.6%+10.1%
Q1 2020-7.7%+1.8%+14.6%
Q4 2019-22.7%-23.0%-46.8%
Q3 2019+5.0%+7.4%+4.7%
Q2 2019+7.2%+8.7%-2.4%
Q1 2019-13.9%-18.0%-32.0%
Q4 2018-11.9%-11.5%-9.7%
Q3 2018+18.3%+23.8%+16.6%
Q2 2018+0.8%+2.3%+14.7%
Q1 2018+3.7%+5.6%+22.4%
Q4 2017-8.2%-3.9%+15.5%
Q3 2017+2.5%+9.7%+12.0%
Q2 2017+10.0%+16.2%+15.8%
Q1 2017+11.9%+5.0%+15.5%
Q4 2016+8.4%+7.2%+6.3%
Q3 2016-2.8%+8.3%-2.6%
Q2 2016-23.3%-23.9%-22.5%
Q1 2016+23.5%
Q4 2015-6.4%
Q3 2015-8.0%
Q2 2015+11.3%
Q1 2015+8.2%
Q4 2014+4.8%
Q3 2014-2.2%
Q2 2014+12.2%
Q1 2014+1.6%
Q4 2013+2.9%
Q3 2013-6.7%
Q2 2013-21.7%
Q1 2013+5.1%
Q4 2012+1.4%
Q4 2011-1.0%
Q3 2012-22.2%
Q2 2012+16.7%
Q1 2011+0.7%
Q1 2012-9.6%
Q4 2009-3.9%
Q3 2011+3.6%
Q3 2010+3.6%
Q4 2010-9.6%
Q2 2010-9.6%
Q2 2011-9.6%
Q1 2010+0.2%

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