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Crocs Q2 Blows Past Analyst Predictions on Digital Sales Strength

Crocs posted record second quarter earnings early Thursday — with revenues up 93%, led by strength from the Americas.

The comfort footwear company, which also raised its full-year outlook, said quarterly net earnings rose to $319 million, or $2.23 per share, on an adjusted basis, compared with $56.6 million, or $1.01 a year ago. Revenues of $640.8 million compare with $331.6 million in a year ago.

Analysts expected EPS of $1.52 on revenues of $559.1 million.

“We continue to see strong consumer demand for the Crocs brand globally. On the back of record second quarter results and continued momentum, we are raising our full year 2021 guidance,” said Andrew Rees, CEO, in a statement.

The company now expects full-year revenues to increase 60% to 65% compared with 2020 revenues of $1.39 billion. In the third quarter, the company sees revenues rising 60% to 70% compared with third quarter 2020 revenues of $361.7 million.

By channel, Crocs said Q2 sales in the Americas were up 135.6% to $405.7 million, while Asia Pacific sales increased 27.1% on a constant currency basis to $126.8 million. In Europe, Middle East, and Africa, sales rose 52.6% to $108.3 million.

Digital sales increased 25.4% and now represent 36.4% of revenue, compared with 56.1% of revenues in 2020, Crocs said. Direct-to-consumer sales made up 52% of Q2 revenues and rose 78.6% year over year.

The company’s gross margins popped 740 basis points to 61.7% of sales (61.8% on an adjusted basis) versus 54.3% a year ago.

In addition to the earnings report, Crocs said it is committing to net zero carbon emissions by 2030. The company will focus on transitioning to sustainable ingredients, minimizing packaging, using resources responsibly, and exploring solutions for product afterlife.

“I believe we can deliver sustained, highly profitable growth while having a positive impact on our planet and our communities,” Rees said.

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