Crocs reports record Q2 revenues, announces net zero emissions target
Broomfield, Colorado-based footwear maker Crocs, Inc. reported record second-quarter revenues of $640.8 million on Thursday, an increase of 93.3% compared to $331.5 million in the prior-year period, and revealed an ambitious new environmental goal.
In the second quarter ended June 30, 2021, Crocs saw particular growth in its wholesale channel, where revenues rose 112.1% year over year to $307.3 million, up from $144.9 million in Q2 2020.
In the direct-to-consumer (DTC) channel, sales totaled $333.4 million, accounting for 52.0% of the company’s total quarterly revenues. This figure represented a 78.6% increase compared to the second quarter of 2020, when DTC sales were $186.7 million, and an 86.4% rise compared to the second quarter of 2019. Digital sales at Crocs grew 25.4% year over year, representing 36.4% of total revenues.
Broken down by geographical region, Crocs made the strongest gains in the Americas, where revenues came to $405.7 million, an increase of 135.6% in constant currencies, compared to the prior-year period. In Europe, the Middle East and Africa (EMEA), the company’s revenues rose 42.6% year over year to $108.3 million, while in the Asia-Pacific region, sales rose 27.1% in constant currencies to $126.8 million.
Quarterly net income at Crocs was $319.0 million, or $4.93 per diluted share, up from $56.6 million, or $0.83 per diluted share, in the same period in the previous year.
Taking into account its results for both the first and second quarters, the company’s revenues for the first half of the year totaled $1.1 billion, up from $612.7 million in the prior-year period. First-half income was $417.4 million, or $6.35 per diluted share, compared to $67.6 million, or $0.99 per diluted share.
Looking forward, Crocs expects its Q3 revenues to see growth of between 60% and 70%, compared to $361.7 million in the third quarter of 2020. In light of its strong Q2 results, the company has also upped its full-year guidance and now expects its annual revenue to increase in the range of 60% to 65% compared to $1.386 billion in the previous year.
In addition, Crocs announced that it has committed to becoming a net zero emissions company by 2030. The company’s strategy will prioritize the mitigation of Scope 1, 2 and 3 CO2 equivalent emissions, which covers direct emissions from owned or controlled sources, and indirect emissions arising from the consumption of purchased energy, as well as from the company’s value chain.
In practice, Crocs said that it will be focusing on transitioning to the use of sustainable materials, while also minimizing packaging, responsibly managing resources, and exploring innovative afterlife solutions for its products.
“We continue to see strong consumer demand for the Crocs brand globally,” commented Crocs CEO Andrew Rees in a release. “I believe we can deliver sustained, highly profitable growth while having a positive impact on our planet and our communities.”
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