Crocs reports record Q3 revenue, ups full-year forecast

US footwear brand Crocs has reported record revenue and soaring profit in the third quarter of the year despite “widespread supply chain disruption”.

In the three months to September 30, the company’s revenue came in at 625.9 million dollars, a 73 percent increase from a year earlier.

It said growth was strong in all regions, with the Americas up 94.5 percent, Asia Pacific up 21.2 percent and Europe, Middle East, and Africa (EMEA) up 42.8 percent on a constant currency basis.

Breaking it down by channel, direct-to-consumer (DTC) revenue grew 60.4 percent to 316.3 million dollars and wholesale was up 88.2 percent to 309.6 million dollars.

Digital sales increased by 68.9 percent to represent 36.8 percent of total revenue - that’s compared to 37.7 percent and 32.2 percent of revenue in 2020 and 2019, respectively.

Profits soar at Crocs

The company’s net income more than doubled to 153.5 million dollars from 61.9 million dollars a year earlier, while its operating margin expanded to 32.4 percent from 19.9 percent.

The strong earnings came despite Vietnamese factory closures and widespread disruption in the global supply chain.

Looking ahead, Crocs now expects full-year 2021 revenue to increase by between 62 percent and 65 percent.

It expects full-year 2022 growth to increase by more than 20 percent year-on-year.

Crocs chief executive Andrew Rees described the brand’s revenue growth as “exceptional”.

“Globally, our teams are managing through the supply chain disruptions to mitigate the impact on our business,” he said.

“Despite the temporary disruptions, we expect 2022 revenues to grow over 20 percent from 2021 fueled by the strength of our brand and consumer demand globally.”