NASDAQ$CROX

Crocs Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Crocs reported record revenue and industry-leading adjusted operating margin.

Crocs, Inc. reported exceptional third quarter results, with record revenue and an industry-leading adjusted operating margin of 28%. The company is raising its 2022 guidance following a strong back-to-school performance and 20% constant currency revenue growth in the Crocs Brand.

  • Consolidated revenues increased 57.4% to $985.1 million, or 63.0% on a constant currency basis, compared to 2021.
  • Crocs Brand quarterly revenues increased 14.3% to $715.7 million, or 19.9% on a constant currency basis, compared to 2021, with direct-to-consumer comparable sales increasing 18.2%.
  • HEYDUDE Brand revenues were $269.4 million, up approximately 87% compared to 2021.
  • Operating margin was 26.8% and adjusted operating margin was 27.9%.

Headline financials

Total Revenue

$985M

Previous: $626M+57.4%
EPS (adj)

$2.97

Previous: $2.47+20.2%
Capital Expenditures

-$89.6M

Previous: -$35.8M-150.5%
Free Cash Flow

$79.8M

Previous: $118M-32.3%
Net Income

$169M

Previous: $153M+10.3%
Operating Income

$264M

Previous: $203M+30.0%
Gross Profit

$541M

Previous: $400M+35.4%
Cash & Equivalents

$143M

Previous: $437M-67.3%
Total Assets

$4.54B

Previous: $1.75B+160.3%
Stock-Based Comp

$7.89M

Previous: $10.6M-25.5%

Revenue & EPS history

Crocs · Revenue · Quarterly

$985M

Q3 2022+57.4%vs Q3 2021
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Crocs · $269M total across 1 segment · Q3 2022

  • HEYDUDE Brand
    $269M

Forward guidance

Crocs expects consolidated revenues to be approximately $3.455 to $3.520 billion, representing growth between 49% and 52% compared to 2021. Adjusted diluted earnings per share to now be between $9.95 and $10.30.

Tailwinds

  • Consolidated revenues to now be approximately $3.455 to $3.520 billion, representing growth between 49% and 52% compared to 2021.
  • Crocs Brand revenues to now be $2.605 to $2.630 billion, implying approximately 17% growth on a constant currency basis, and approximately 13% growth on a reported basis.
  • HEYDUDE Brand revenues to still be approximately $850 to $890 million on a reported basis, implying $940 to $980 million, including the period of time prior to the closing of the acquisition.
  • Adjusted operating income to now be approximately $920 to $950 million and adjusted operating margin to be approximately 27%.
  • Adjusted diluted earnings per share to now be between $9.95 and $10.30.

Headwinds

  • GAAP tax rate of approximately 25% and non-GAAP effective tax rate to now be approximately 21%.
  • Capital expenditures to now be approximately $150 to $170 million, primarily for supply chain investments to support growth.
  • Crocs Brand revenues to still be $5.0 billion by 2026.
  • HEYDUDE Brand revenues to now be over $1.0 billion in 2023.
  • Consolidated adjusted operating margins to still exceed 26% by 2026.

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 2022

Historical avgQ3 2022

-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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