Crocs forecasts record sales in 2022 as executives forge ahead with an ambitious growth plan to hit $5 billion in Crocs brand revenue by 2026.
The comfort company on Tuesday said it expects revenues in 2022 to hit about $3.55 billion, which would mark a 53% bump from 2021 and beat its previously announced expectations of 49% to 52% growth. By brand, Crocs is expected to be up 15% to $2.65 billion and the recently acquired Hey Dude brand is expected to grow close to 70% to nearly $1 billion. (The company previously announced a goal to have Hey Dude revenues hit $1 billion in 2023.)
Crocs announced this news as part of its presentation at the 25th annual ICR conference, which runs through Wednesday. Other major footwear brands and retailers such as On, Caleres, Genesco and Boot Barn have also announced updated sales and earnings expectations in advance of and during the conference, though some have downgraded their outlooks due to inflation and other headwinds.
“2022 was an exceptional year for Crocs, Inc., with strong consumer demand for both the Crocs and Hey Dude brands driving expected 53% revenue growth,” CEO Andrew Rees. “We are also pleased to have made significant progress on deleveraging, as we have reduced borrowings by approximately $500 million since acquiring Hey Dude in early 2022.”
In Q4, Crocs expects to see revenue growth of about 60% over 2021. And in 2023, Crocs projects revenue growth of 10% to 13% over 2022, or between $3.9 billion and $4 billion.
Building on its success in 2022, Crocs outlined new product launches planned for 2023 for both of its brands and said it would double down on international markets. In 2022, international made up 29% of sales and Americas accounted for 71%.
For Hey Dude, Crocs is looking to expand the brand’s relationships with top US wholesale accounts. Across the company, DTC accounted for 45% of sales and wholesale made up 55% in 2022. Digital penetration was 37%.
