Crocs surprises in the third quarter and raises guidance

The US shoe retailer Crocs Inc. exceeded market expectations in the third quarter of fiscal 2022 with strong growth in sales and profits. In view of the pleasing development, the company set higher targets for the full year on Thursday.

Group sales in the months of July to September reached a new record high of 985.1 million US dollars (1.01 billion euros) and thus exceeded the level of the same quarter of the previous year by 57.4 percent. Adjusted for exchange rate changes, revenues increased by 63.0 percent.

The Heydude label, which was taken over on February 17, made a significant contribution to the significant growth and contributed sales of 269.4 million US dollars in the past quarter. But the core brand Crocs also developed successfully: compared to the same period of the previous year, its sales increased by 14.3 percent (currency-adjusted +19.9 percent) to 715.7 million US dollars. Although growth in North America was limited (+1.7 percent, currency adjusted +1.8 percent), sales in Asia-Pacific increased by 65.5 percent (+82.3 percent currency adjusted) and in the region EMEALA (Europe, Middle East, Africa and Latin America) by 26.2 percent (currency-adjusted +45.6 percent).

Despite higher costs, the group was also able to significantly increase its earnings: Operating profit grew by 30.0 percent to $264.1 million, quarterly net income by 10.3 percent to $169.3 million ($173.6 million). Euro).

In view of the surprisingly good business recently, the company raised its forecast for the year. For 2022, it now expects sales to grow by 49 to 52 percent to $3.455 to $3.520 billion. The target range for adjusted diluted earnings per share was narrowed to between $9.95 and $10.30. Previously, management had forecast annual sales of between $3.395 billion and $3.505 billion and adjusted diluted earnings per share in the range of $9.50 to $10.30.

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