Crocs Posts Earnings Beat, Delivers ‘Highest Quarterly Revenues in Company History’
Crocs Inc. delivered stellar fourth-quarter and full-year earnings and revenues as its brand momentum continues to defy macroeconomic challenges related to the coronavirus pandemic.
For the three months ended Dec. 31, adjusted diluted earnings per share amounted to $1.06, versus the prior year’s earnings of 12 cents per share. Wall Street had predicted earnings of 78 cents per share. Revenues also surged 56.5% to $411.5 million, compared with analysts’ bets of $399.51 million. Its e-commerce business advanced 92%, while wholesale rose 52.2% and retail comps climbed 40.9%.
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In a statement, Crocs said that the “highest quarterly revenues in company history were achieved in the fourth quarter.” The clog maker, which was named FN’s Brand of the Year at the 2020 FN Achievement Awards, has seen its stock climb nearly 135% in the past year.
“We achieved record fourth-quarter revenues and profitability and finished 2020 with very strong brand momentum,” CEO Andrew Rees said in a statement. “We are looking forward to an exceptional 2021 with accelerated revenue growth as we invest in digital, China and our supply chain to support future growth.”
For the full year, its revenues grew 12.6% to $1.39 billion, while adjusted diluted earnings per share doubled to $3.22 from $1.61. Digital sales — including those through its company-owned website, third-party marketplaces and e-tailers — improved 50.2% and represented 41.5% of total revenues, compared with 31.1% last year. Direct-to-consumer comparable sales, which includes retail and e-commerce, also increased 39.2% in 2020.
Across geographies, the Asia-Pacific was the only region to report a decline — sliding 19.2% to $278.5 million. The Americas saw revenues jump 35.7% to $863.6 million, and Europe-Middle East-Africa recorded a 1.5% uptick in revenues to $243.7 million.
At the end of the year, Crocs had cash and equivalents of $135.8 million as well as $319.4 million in available borrowing capacity. It also released forecasts for the next fiscal period and the full year: First-quarter revenue growth is expected to be between 40% and 50%, while adjusted operating margins are anticipated to be between 17% and 18%. For 2021, it predicted revenue gains to be between 20% and 25%, with adjusted operating margins between 18% and 19%.
“I am confident in our ability to continue to deliver outstanding profitability and strong cash flow,” Rees added. “The Crocs brand has never been stronger, and I am very excited about our future.”
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