The US shoe retailer Crocs Inc. surprisingly increased its sales significantly in the first quarter of the 2022 fiscal year. Although the profit fell short of the previous year’s level due to negative special effects, it also exceeded market expectations. In light of the strong numbers, the company raised its full-year guidance on Thursday.
In the months of January to March, group sales reached a level of 660.1 million US dollars (626.0 million euros). It was thus 43.5 percent (+46.7 percent after currency adjustments) above the level of the same quarter of the previous year. The core brand Crocs increased its sales by 18.5 percent (currency-adjusted +21.7 percent) to 545.2 million US dollars, the newly acquired label Heydude has contributed 114.9 million US dollars to total sales since its acquisition on February 17th at.
Earnings were impacted by higher freight costs and negative one-off effects, mainly resulting from write-downs on Heydude inventories and products intended for sale in Russia. The operating profit fell compared to the same period last year by 4.8 percent to 118.7 million US dollars. However, adjusted for special effects, it grew by 39.6 percent to USD 175.5 million. Reported net income fell 26.1 percent to $72.8 million (€69.0 million). On an adjusted basis, net income grew 25.7 percent to $125.0 million, well ahead of market expectations.
Given the strong start, the company raised its full-year guidance: It now expects sales of about $3.5 billion and adjusted diluted earnings per share to be in the range of $10.05 to $10.65 . Previously, only 9.70 to 10.25 US dollars had been expected.