Crocs record Q2 revenue and commits to net zero emissions by 2030

United States
Published:  23 July, 2021
Men's Yukon Vista Clog

Revenues for the U.S. headquartered footwear manufacturer totalled US$641 million in the second quarter of 2021, growing 93% or 88.4% on a constant currency basis as compared to 2020.

Revenue growth was strong in all regions, with the Americas up 135.6%, Asia Pacific up 27.1% and Europe, Middle East, and Africa (EMEA) up 52.6% on a constant currency basis versus prior year. Digital sales grew 25.4% to represent 36.4% of revenue versus 56.1% and 32.6% of revenue in 2020 and 2019, respectively. Direct-to-consumer (DTC) sales grew 78.6% compared to 2020 and 86.4% compared to 2019, to represent 52.0% of second quarter revenues. Operating income more than tripled to US$195.3 million as compared to 2020 and operating margins expanded to 30.5%.

Net zero commitments
Crocs says it strives to make a positive impact on the global footwear industry and the planet by committing to transparent, socially conscious, and sustainable business practices. Crocs committed to becoming a net zero emissions company by 2030, prioritising the mitigation of Scope 1, 2 and 3 CO2 equivalent emissions.
The plan it is implementing to achieve this commitment centres on the transition to sustainable ingredients, minimising packaging, responsible resource use, and exploring innovative product afterlife solutions. Additionally, it has stated its committed to community and inclusivity, rooted in a culture of governance, transparency, and accountability.

Outlook
With respect to the third quarter of 2021, Crocs expect revenue growth to be between 60% and 70% compared to third quarter 2020 revenues of US$361.7 million, non-GAAP adjustments of approximately US$3 million related to distribution centre investments that will negatively impact gross margin and non-GAAP operating margin to be between 24% and 26%.

With respect to 2021, Crocs expect revenue growth to be between 60% and 65% compared to 2020 revenues of US$1,386.0 million, non-GAAP adjustments of approximately US$8 to US$10 million related to distribution centre investments that will negatively impact gross margin, non-GAAP operating margin of approximately 25%, non-GAAP effective tax rate of approximately 23%, excluding a GAAP tax credit of US$175.7 million, and capital expenditures of US$80 to US$100 million for supply chain investments to support growth.