Crocs is still enjoying a strong momentum as its fourth-quarter revenues jumped by 56.5 percent from the year-ago quarter to a record level of $411.5 million. In constant currencies, they gained 56.1 percent.The number of pairs sold during the quarter grew by 38 percent to 18.9 million, and their average price went up by 14 percent to $12.63. The company booked a significant increase in e-commerce, as consumers migrated to online shopping during the Covid-19 pandemic.
The gross margin jumped by 7.7 percentage points to 55.7 percent, due to the product mix, higher prices on certain products and lower levels of promotions and discounts. The operating margin soared by 12.5 percentage points to 15.7 percent. The company’s net income surged to $183.3 million, up from $19.9 million for the year-ago quarter. The bottom line was aided by a tax benefit of $119.9 million, up from a $13.7 million benefit in the year-earlier period, due to a change in the tax structure.
Wholesale revenues grew by 52.2 percent to $190.3 million, while retail sales rose by 36.7 percent to $107.8 million, with an increase on a comparable store basis of 40.9 percent.
Global revenues from e-commerce surged by 92.0 percent, with strong growth in all regions, reaching a level of $113.3 million in the quarter. Crocs’ own digital sales, combined with those of e-tailers, rose by 87 percent, making up 41 percent of the total turnover.
By region, the Americas climbed by 100.5 percent in constant currencies to $310.2 million. However, in Asia-Pacific, revenues declined by 22.1 percent in local currencies, down to $51.8 million, but e-commerce grew in the region by 13.1 percent.
In EMEA, sales were up by 11.4 percent to $49.4 million in constant currencies. Retail sales fell by 23 percent, due to retail lockdowns, but gains of 11 percent and 54 percent were recorded at wholesale and in e-commerce, respectively.
Crocs closed two stores and opened two during the quarter, ending the period with 351 locations. The number of stores in the EMEA region was down to 49 from 50.
For the full 2020 financial year, Crocs’ revenues of $1,386.0 million showed inceases of 12.6 percent in dollars and 13.5 percent in local currencies. E-commerce rose by 58.2 percent, wholesale revenues gained 5.6 percent and retail sales progressed by 21.2 percent on a same-store basis. Digital sales jumped by 50.2 percent to represent 41.5 percent of total revenues, versus 31.1 percent last year. Overall, direct-to-consumer comparable sales grew by 39.2 percent.
The number of pairs sold last year rose by 3 percent to 69.1 million, with their average price moving up by 9 percent to $19.91. In particular, clogs generated 33 percent higher revenues, representing 72 percent of the turnover compared with 60 percent in 2019. Sandals were hit the most due to order cancellations in the first phase of the pandemic, but they are expected to return to growth in 2021.
Regionally, EMEA rose by just 1 percent to $243.7 million, while Asia-Pacific declined by 20 percent and the Americas grew by 35 percent.
The gross margin expanded by 4.0 percentage points to 54.1 percent last year, while the operating margin improved by 4.9 percentage points to 15.4 percent. Net income reached $312.8 million, up from $119.5 million in the prior year.
Crocs expects revenues to grow between 20 percent and 25 percent in 2021. It claims to be the leader in the clog market with a share of about 20 percent globally, but the company will also focus on expanding the sandal segment by targeting female consumers, investing in marketing to support client awareness and stimulate higher purchase frequency to address multiple shoe wearing situations.