Cecilia Bel
Apr 28, 2023
Total revenue in the first quarter was $884 million, an increase of 36% at constant exchange rates.
On April 27, Crocs, a well-known casual shoe company located in Colorado, USA, announced its financial report for the first quarter of fiscal year 2023, ending March 31. Crocs CEO and Director Andrew Rees said that they are very satisfied with the earnings in the first quarter.
Looking specifically at the data for the first quarter of this year, according to Andrew's conference call, total revenue was $884 million, an increase of 36% at constant exchange rates, with growth across all brands, regions, and channels. Crocs brand revenue increased 22% in constant currency, with growth in all regions; DTC (direct to consumer, no retailers or wholesalers) comparable sales increased 19%. For the third year in a row, Crocs has been named one of Fast Company's 10 Most Innovative Brands.
At the beginning of last year, Crocs announced that it had completed the previously acquisition of the original Italian casual shoe brand Heydude for $2.5 billion. Heydude has performed very well every quarter since operating as a stand-alone division. Heydude brand revenue was $235 million, and an adjusted gross margin of 54% was outstanding. Brand revenue approached $1 billion in its first year of acquisition.
According to category rankings by consultancy L.E.K., the Crocs brand ranks No. 2 among women's casual shoe brands and No. 3 among men. It was ranked sixth among teens in Piper Sandler's Spring 2023 Teen Takeaway Survey. The Heydude brand is L.E.K.'s #1 casual shoe brand for men and women. It rose one spot (from 9 to 8) in the Piper Sandlers survey compared to the same period last spring.
Andrew also said that the performance of the sandal category in this quarter was amazing, especially in Asia. Sandals' performance as a whole saw a 65% increase in revenue compared to the same period last year. They're confident they'll grow to about $400 million for the full year this year.
The penetration rate of Crocs in Asia is currently lower than that in the United States, so the brand is very optimistic about the long-term growth momentum here. In the first quarter, revenue in Asia grew 55% in constant currency, with revenue in China growing more than 110% in constant currency.
At present, Crocs' previous best-selling styles have already undergone a new strategic plan. An ERP implementation and a new distribution center in Las Vegas will be implemented this year. Based on the outstanding performance in the first quarter, Crocs said they raised their full-year revenue forecast for 2023, which will increase by 11% to 14% year-on-year to reach US$3.95 billion to US$4.05 billion. As the epidemic improves, this growth rate may be faster.
