Crocs’ Financial Performance Through 2022

Crocs revenue for the twelve months ending March 31, 2023 was $3.779B, a
50.35% increase year-over-year. Crocs annual revenue for 2022 was $3.555B, a
53.67% increase from 2021. Crocs annual revenue for 2021 was $2.313B, a
66.92% increase from 2020.
How many pairs of Crocs were sold in 2022?
During 2022, the company also acquired casual footwear brand HeyDude
expanding its profile into sneakers and bringing total company sales to $3.6 billion.
All told, it sold 115.6 million pairs of Crocs shoes worldwide – nearly four pairs per
second – increasing from 103 million pairs in 2021.

How much debt is Crocs in 2022?

Crocs long term debt for 2022 was $2.298B, a 197.91% increase from 2021. Crocs
long term debt for 2021 was $0.771B, a 328.55% increase from 2020.

Crocs Long Term Debt 2010-2023

Crocs long term debt from 2010 to 2023. Long term debt can be defined as the sum of all long-
term debt fields.

 Crocs long term debt for the quarter ending March 31, 2023 was $2.250B, a 21.08%
decline year-over-year.
 Crocs long term debt for 2022 was $2.298B, a 197.91% increase from 2021.
 Crocs long term debt for 2021 was $0.771B, a 328.55% increase from 2020.
 Crocs long term debt for 2020 was $0.18B, a 12.2% decline from 2019.

https://www.macrotrends.net/stocks/charts/CROX/crocs/long-term-debt#:~:text=Crocs
%20long%20term%20debt%20for%202022%20was%20%242.298B%2C%20a,a
%20328.55%25%20increase%20from%202020.

Crocs annual/quarterly revenue history and growth rate from 2010 to 2023.
Revenue can be defined as the amount of money a company receives from its
customers in exchange for the sales of goods or services. Revenue is the top line
item on an income statement from which all costs and expenses are subtracted to
arrive at net income.

 Crocs revenue for the quarter ending March 31, 2023 was $0.884B, a 33.93%
increase year-over-year.
 Crocs revenue for the twelve months ending March 31, 2023 was $3.779B, a 50.35%
increase year-over-year.
 Crocs annual revenue for 2022 was $3.555B, a 53.67% increase from 2021.
 Crocs annual revenue for 2021 was $2.313B, a 66.92% increase from 2020.
 Crocs annual revenue for 2020 was $1.386B, a 12.62% increase from 2019.
Crocs annual/quarterly gross profit history and growth rate from 2010 to 2023.
Gross profit can be defined as the profit a company makes after deducting the
variable costs directly associated with making and selling its products or providing
its services.

 Crocs gross profit for the quarter ending March 31, 2023 was $0.476B, a 46.61%
increase year-over-year.
 Crocs gross profit for the twelve months ending March 31, 2023 was $2.012B,
a 34.84% increase year-over-year.
 Crocs annual gross profit for 2022 was $1.86B, a 30.99% increase from 2021.
 Crocs annual gross profit for 2021 was $1.42B, a 89.38% increase from 2020.
 Crocs annual gross profit for 2020 was $0.75B, a 21.54% increase from 2019.

Crocs annual and quarterly EBITDA history from 2010 to 2023. EBITDA can be
defined as earnings before interest, taxes, depreciation and amortization.

 Crocs EBITDA for the quarter ending March 31, 2023 was $0.248B, a 95.99%
increase year-over-year.
 Crocs EBITDA for the twelve months ending March 31, 2023 was $1.011B, a 42.69%
increase year-over-year.
 Crocs 2022 annual EBITDA was $0.89B, a 24.47% increase from 2021.
 Crocs 2021 annual EBITDA was $0.715B, a 195.79% increase from 2020.
 Crocs 2020 annual EBITDA was $0.242B, a 58.14% increase from 2019.

Here’s how Crocs avoided some of the pain of shipping delays and factory
closures PUBLISHED THU, OCT 21 202110:13 AM EDTUPDATED THU, OCT 21
20212:31 PM EDT

https://www.cnbc.com/2021/10/21/heres-how-crocs-avoided-some-of-the-pain-of-supply-
chain-issues.html

KEY POINTS
 A snarled global supply chain is hurting retailers, from shoe brands to
department store chains, and threating their performance this holiday season.

 But Crocs says it has created a playbook to manage through the crisis with
mitigated impact.

 Chief Executive Andrew Rees told analysts on an earnings call that the

retailer’s clog shoes are easy to make and so the company faces fewer
hurdles in shifting production around.

https://www.cnbc.com/2021/10/21/heres-how-crocs-avoided-some-of-the-pain-of-
supply-chain-issues.html
A snarled global supply chain is hurting retailers, from shoe brands to department
store chains, and threatening their performance this holiday season.

But Crocs says it has created a playbook to manage through the crisis with

mitigated impact. On Thursday, the company’s fiscal third-quarter earnings and
sales smashed Wall Street estimates, and Crocs hiked its full-year revenue
outlook. The news sent Crocs shares soaring; the stock was recently up about 7%.

Chief Executive Andrew Rees explained on an earnings-related call a key

advantage is the fact that the retailer’s clog shoes are easy to make and so the
company faces fewer hurdles in shifting production around when needed.

“Our shoes are really simple, and so [swapping] factories can be very, very quick,”
Rees explained. “The classic clog has three components, two of which are made
on site, so you don’t have a lot of external logistics to be able to get started. We
think we’re competent in terms of rapid manufacturing.”

Crocs was quick to begin diversifying its manufacturing overseas, especially with

facilities in Vietnam facing prolonged shutdowns due to pandemic lockdowns in the
region. In the short term, the company said it has moved some production back to
China and Bosnia. It’s also ramping up production in Indonesia, and it has a facility
in India expected to be online by next year.

Vietnam has traditionally represented a significant chunk of Crocs’ manufacturing

base. It was expected to account for about 70% of production by the end of this
year, the company said, but will be less due to Crocs’ diversification efforts.

As of this week, most of the retailer’s factories in Vietnam are operational again,
according to Rees. Workers are coming back to plants “pretty effectively,” he
added. But Rees said Crocs is still cautiously planning for an “on again, off again”
situation in the region.

Meantime, to avoid massive logjams at West Coast ports, the company said it has
been building a larger presence along the East Coast to reach its customers in the
United States. Crocs has also been using air freight instead of cargo transportation
to move orders in preparation for spring and summer of next year.

“We will prioritize our most important channels,” Rees said.

Crocs is anticipating some inflation next year, primarily from heightened freight and
wage costs, it said. The retailer has already slightly increased the prices of some of
its clog shoes. Pulling back on promotions has also helped to balance out
inflationary pressures.
“We’re proactively looking at other measures and things that we can do to kind of
offset any inflationary pressures,” Chief Financial Officer Anne Mehlman told
analysts.

Crocs shares have soared more than 140% year to date. The company has a
market cap of $9.3 billion.

How Crocs digitized their financial supply chain with Infor Nexus
https://www.infor.com/blog/how-crocs-digitized-their-financial-supply-chain-with-
infor-nexus
MARCH 9, 2023
Footwear brand Crocs recently took part in a webinar with Supply Chain Now’s Scott Luton
to discuss the benefits of using Infor(R) Nexus Factory Management to improve supply chain
operations and “save a ton of money”. Featuring Infor’s Jon Runkel and Chris Thorndike from
Crocs, we highlight the key messages and insights from an hour of lively chat and the post-event
Q&A.  

The Crocs' story in a changing world 

Celebrating 20 years of a footwear revolution, the Crocs brand is globally famous and still
ambitious, aiming for $5 billion in revenue in 2026. The company has expanded from 6 to 600-
plus styles and colors, and with the $2.5 billion acquisition of Hey Dude shoes in 2021 operates
across a more complex business environment.  

Supporting growth and meeting challenges 

Chris Thorndike, Croc’s Director of Global Capacity Planning, and his teams were drowning in
manual processes and paperwork through much of the company’s history. That changed with
efforts to digitize the supply chain, procurement to pay, and create a digital twin
of their processes.  

The results of that process, with the adoption of Infor Nexus saw payment cycle times
reduced from 26 days to half a day, making suppliers a lot happier and eager to do more
business. The company’s paper trail was eradicated, and past due amounts were cut from $12
million to just $.5 million, with broad savings across applications payable. 

Infor’s Jon Runkel noted that Crocs’ efforts were based on a solid foundation that made it easy
to digitize services, with speedy no-touch payments, highlighting that digitization enabled Crocs
to scale at a phenomenal rate without the need to add headcount.  

Pushing toward the all-digital future 

Crocs is looking to move to a more global footing with less reliance on China, having grown from
less than 10 suppliers to 20 in a few years. Digitization and automation help them plug in new
suppliers and factories as they come online, expanding the product portfolio faster, and freeing
up the company’s teams to handle higher-value tasks. 

Infor Nexus Factory Management supports the business through packaging, labor

requirements, standardizing supply chain processes, and streamlining receiving processes, with
visibility benefits for Crocs and their suppliers.  

Automation helps Crocs eliminate huge numbers of phone calls, emails, and other
communications across their processes. Collaboration is also improved, with the latest process
change working to eliminate Crocs’ massive spreadsheets and manual data entry that the
company relies on. Order collaboration eliminates those and many emails.  

The power of long-term relationships 

Chris Thorndike also focused on the need for strong relations between the business and solution
providers like Infor. It needs to be a long-term relationship with people you can trust (as with
suppliers and factories) and not a short-term solution to just one problem.  

The scope of engagement, focusing on people, process, and technology, is vital to understand
the business and transforming processes into automated systems, the only way to deliver
growth and efficiency, delivering value to the business and partners. 

From Infor’s perspective, the relationship (and the transformation journey) means knowing the
market and the business of the supply chain, turning up when things break, adding features that
are needed, and being there to help through problems, always looking for other efficiencies.

For all the detail and more insights, go check out the Webinar, to find out how the supply
chain became not boring and the impact of COVID on major brands.  

https://www.youtube.com/watch?v=e5bdsiJa4cU
How Crocs Optimized Their Supply Chain for Reliability and
Cost in 2021

Crocs Case study - Revolutionizing an Industry's Supply Chain

Model | SCM | Supply chain management
This case discusses the astounding growth of Crocs, Inc., a manufacturer of plastic shoes,
from 2003 through early 2007. Much of the company's growth was made possible by a
highly flexible supply chain that enabled Crocs to build additional product within the selling
season. The normal model used within the fashion industry was to take orders well in
advance of each selling season, and produce to those orders, with relatively little
additional production. If demand was far in excess of this production, there would be
stockouts and the company would lose the ability to capture revenue for that season. The
product might or might not be in fashion the following year, when production would again
be based on preseason orders. Crocs' ability to build additional shoes within the season
enabled it to take advantage of strong customer demand, resulting in the company filling
in-season orders totaling many times that of the initial prebooked orders. The case
describes the Crocs supply chain. #SCM #supplychainmanagent #Crocs
#supplychaincasestudy #mbacasestudy #managementcasestudy #harvardcasestudy
#crocs #crocscasestudy

Crocs Sees Supply Chain Woes Restraining 2022 Revenue Gains

Posted by Thomas J. Ryan | Oct 21, 2021 | Feature, SGB Executive
Crocs Inc. reported sales jumped 73 percent in the third quarter and predicted a robust
holiday selling quarter. However, the comfy shoemaker warned that continued supply chain
challenges, primarily tied to pandemic-related factory shutdowns in Vietnam, would hold
back revenue growth in the first half of 2022.
On a conference call with analysts, Andrew Rees, CEO, said wholesale bookings for the
first half of 2022 “have been exceptionally strong,” and the company expects 2022 revenue
growth to exceed 20 percent. He said, “Consumer demand for our products is high. We
remain confident in our growth trajectory.”
However, given the global supply chain constraints, Crocs is facing “limitations around
how much demand we can fulfill for the first half of the year,” according to Rees.
Supply Chain Mitigation Measures
Rees said the company is pursuing several steps to “mitigate the impact of this temporary
disruption,” including reducing its exposure to Vietnam production.
The first step is shifting production capacity to other countries, including China, Indonesia
and Bosnia. Two factories in Indonesia will be online by the end of the year, and a major
plant in India is expected to open in about a year. Crocs said it would move some of the
production, in the short term, back to China.
Rees said the company has “a unique advantage in that we can ramp factory production
quickly due to the limited inputs and simple configuration of our products.”
In Vietnam, some factories were closed for several weeks during the quarter and began
reopening earlier this month. Said Rees, “Today, most of our factories in Vietnam are
operational, although they are in various stages of restarting. We expect the situation to
remain fluid as the vaccination rates increase in the country.”
Overall, Vietnam was initially planned to represent about 70 percent of Crocs’
manufacturing base for 2021, although it will be “a little less than that” due to the
diversification efforts, according to Rees.
A second mitigation measure is prioritizing its top-selling products and narrowing SKU
count. Said Rees, “While still preserving newness, we’re able to improve factory
throughput.”
Thirdly, Crocs will aggressively leverage air freight to bring in units to support the 2022
spring/summer selling season and said it plans to invest approximately $75 million to do so.
In the U.S, Crocs said it would reduce its dependency on West Coast ports by adding East
Coast transshipment capabilities and moving shipments to northern ports on the West
Coast.
Inventories ended the quarter at $212.5 million, up 22.1 percent year-over-year due to
higher in-transit inventories tied to the global logistics challenges. Said Rees, “We
definitely have product on ships outside of Long Beach.”
Finally, Rees said Crocs plans to prioritize inventory to support its most important
channels: owned e-commerce, third-party e-tail, such as Amazon, and its major wholesale
customers.
“I have full confidence in the supply chain team and our factory partners to manage through
this temporary disruption,” said Rees.” Also, I want to emphasize that these disruptions will
not distract from the long-term strategy that we believe will propel the Crocs’ brand to $5
billion-plus over the next five years.”
In mid-September, Crocs unveiled a new five-year plan that set a goal to achieve $5 billion
in revenue in 2026, representing a compound annual growth rate (CAGR) over 17 percent
using the midpoint of the company’s 2021 guidance ($2.25 billion) as the base year. Major
growth targets were digital, sandals and China.
Q3 Sales Vault 73 Percent
The supply chain disruptions come as Crocs’ business remains on fire.
In the third quarter, total revenues of 73 percent versus the prior year to $626 million
doubled from 2019. When it reported second-quarter results on July 22, Crocs had forecast
third-quarter revenues would grow 60 percent and 70 percent. Wall Street’s consensus
target had been $607 million.
Among channels, DTC, which includes revenues from e-commerce and company-owned
stores, grew 60 percent versus the prior year and 90 percent versus 2019, to represent 51
percent of revenues. Wholesale, which includes brick and mortar retail and distributors,
grew revenues 88 percent and 111 percent compared to 2019.
Digital sales grew 69 percent, achieving double-digit growth in all regions and representing
37 percent of total revenues. Digital sales were up 129 percent versus 2019. Rees said, “All
channels benefited from strong traffic, higher pricing and fewer promotions.”
Clogs’ Revenues Jump 91 Percent 
Among product lines, clogs sales surged 91 percent against “a strong 2020” to represent 82
percent of footwear revenues versus 72 percent last year.
“We continue to innovate and are excited about our fuzz-lined product, which is on track
for holiday,” said Rees. “Clog collaborations with Balenciaga, Hidden Valley
Ranch and Sankuanz in China among others continue to excite fans.”
Awareness for Crocs’ sandals collections continues to be raised with collaborations
with Benefit Cosmetics that featured a classic clog and two-strap sandal.
Sandals’ revenues grew 15 percent in the quarter and 31 percent year to date. Sandals
represented 30 percent of footwear sales for the quarter versus 19 percent last year.
Jibbitz‘s sales once again more than doubled for the quarter versus 2020. Said Rees, “We
continue to create excitement through a fresh assortment, including recent diverse
partnerships with social media personality Bretman Rock and legendary rock band, The
Grateful Dead.”

Americas Paces Regional Growth

By region, revenues in the Americas of $455.9 million increased 94.8 percent against the
prior year. DTC revenue growth in the region was 78.3 percent, driven by higher traffic,
conversion and average transaction value. Digital penetration increased to 32.8 percent
from 30.8 percent last year and 26.9 percent in 2019, Wholesale growth was 117.6 percent
versus the prior year and almost triple 2019 “as we continue to see strong sell-through with
our best partners,” said Anne Mehlman, CFO, on the call.
In Asia, Q3 revenues were at $83.6 million, representing an increase of 21.2 percent on a
constant currency basis from last year. India posted triple-digit revenue growth while China
and South Korea both grew revenue double-digit. Softness was seen with distributor sales
in Southeast Asia and in Japan. Digital revenues grew 11.3 percent versus the prior year
and 30.5 percent versus 2019. Digital penetration was 38.1 percent in the quarter compared
to 42.3 percent last year and 32.9 percent in 2019.
EMEA’s revenues reached $86.3 million, increasing 42.8 percent on a constant currency
basis with growing brand heat offsetting global logistics disruptions. Vietnam is duty-free
in Europe, and more of its production stems from Vietnam versus other regions. DTC
revenues in EMEA increased 22.1 percent, with strength driven by higher traffic.
Wholesale revenues grew 56.9 percent. Digital growth was 37 percent versus the prior year
and 85.9 percent compared to 2019. Digital penetration represented 56.9 percent of
EMEA’s revenue this quarter, up from 59.8 percent last year and 49.6 percent in Q319.
Q3 Earnings Top Wall Street Targets 
Adjusted gross margins for the third quarter were 64.2 percent, improving 680 basis points
from last year. Price increases and fewer promotions and discounts offset higher freight
costs associated with global logistics disruption.
The average selling price during Q3 was $24.42, a year-over-year increase of
approximately 14.9 percent, driven by price increases, promotional strategy, and product
mix.
Crocs’ adjusted SG&A improved 520 basis points to 31.4 percent of revenue versus 36.6
percent in last year’s third quarter. The decrease in adjusted SG&A rate was achieved while
investing approximately $60 million versus the prior year, primarily in marketing and talent
to support its strategic growth initiatives: digital, sandals, China and innovation.
Adjusted income from operations rose 172.1 percent to $205.1 million, and the adjusted
operating margin was 32.8 percent compared to 20.8 percent for the same period last year.
When it reported second-quarter results, Crocs had forecast a non-GAAP operating margin
between 24 percent and 26 percent.
EPS more than doubled to $2.42 from 91 cents for the same period last year. Adjusted EPS
came to $2.47, up from 94 cents for the same period last year. Wall Street’s consensus
target has been $1.87.
Looking ahead, Crocs raised the low end of its 2021 full-year revenue guidance and now
expects revenues to increase between 62 and 65 percent. Previously, guidance called for
revenue growth in 2021 to be between 60 percent and 65 percent. Adjusted operating
margin guidance for 2021 was raised from approximately 25 percent to roughly 28 percent
due to favorable gross margins and SG&A leverage.
Rees said demand for Crocs remains “extraordinarily healthy.” He noted that Crocs’
recently-conducted, internal Brands Trends survey showed each of Crocs’ key metrics –
brand desirability, brand relevance and brand consideration – up double digits. Said the
CEO, “We’ve now averaged double-digit growth across these metrics for five consecutive
years.”

Another sign of brand strength was Piper Sandler’s Fall 2021 Taking Stock With Teens
survey that showed Crocs advance in teen-preferred rankings to the number six spot in
footwear, up from nine last year and 34 five years ago.

“Our extraordinary performance in spite of the ongoing COVID-19 pandemic and

widespread supply chain disruptions demonstrate the strength of the Crocs brand and
product offering globally and reinforces the confidence we have in achieving our short and
long-term goals,” said Rees. “Our team’s ability to navigate these disruptions for the last
two plus years has been and continues to be a key ingredient, across our success.”

Shares of Crocs were trading up about 9 percent in late-afternoon trading on Thursday on

management’s optimism on growth outlook and its supply chain mitigation plan.
Photos courtesy Getty.  Shown Crocs x Balenciaga’s Bolt-Embellished Platform Clog,
Summer 2022, worn by Elliot Page.