Business
Crocs, Inc. Reports Record Annual Revenues of $3.6 Billion, Growing 54% Over 2021
Full Year Operating Income of $851M and Adjusted Operating Income of $986M Full Year Diluted EPS of $8.71 and Adjusted EPS of $10.92 BROOMFIELD, Colo., Feb.
About this update from Crocs, Inc.
[{"type":"text","content":"Full Year Operating Income of $851M and Adjusted Operating Income of $986M\nFull Year Diluted EPS of $8.71 and Adjusted EPS of $10.92 \nBROOMFIELD, Colo., Feb. 16, 2023 /PRNewswire/ -- Crocs, Inc. (NASDAQ: CROX) a world leader in innovative casual footwear for women, men, and children, today announced its fourth quarter and full year 2022 financial results.\n\"Consumer demand for the Crocs and HEYDUDE brands has been exceptional, fueling record 2022 revenues for both brands at a combined $3.6 billion and top-tier adjusted operating margin of 28%,\" said Andrew Rees, Chief Executive Officer. \"We anticipate another record year in 2023 with growth expected to be led by sandals and international for the Crocs Brand and increased US market penetration for HEYDUDE.\"\n\"Crocs, Inc. has industry-leading operating margins and generates robust cash flow as a result of the simplicity of our product lines and the high penetration of molded product. Post the acquisition of HEYDUDE, we reduced outstanding debt by $550 million and gross leverage to 2.25 times,\" said Anne Mehlman, Executive Vice President and Chief Financial Officer. \"We remain confident in gross leverage being below 2.0 times by the middle of this year giving us greater flexibility with capital allocation.\"\nAmounts referred to as \"Adjusted\" or \"Non-GAAP\" are Non-GAAP measures and include adjustments that are described under the heading \"Reconciliation of GAAP Measures to Non-GAAP Measures.\" A reconciliation of these amounts to their GAAP counterparts are contained in the schedules below.\nFourth Quarter 2022 Operating Results \nRevenues were $945.2 million, an increase of 61.1% from the same period last year, or 64.8% on a constant currency basis. Direct-to-consumer (\"DTC\"), which includes retail and e-commerce, revenues grew 61.2% and wholesale revenues grew 61.1%.Gross margin of 52.5% declined 1,090 basis points and adjusted gross margin of 53.3% decreased 1,040 basis points compared to the same period last year. Approximately half of the decline in adjusted gross margin is related to the addition of the HEYDUDE Brand. Adjusted gross margin excludes $7.5 million of costs, primarily related to expansion costs and duplicate rent costs for our distribution centers.Selling, general and administrative expenses (\"SG&A\") of $276.3 million increased from $212.0 milli...