Crocs, Inc. Reports Record Annual Revenue of $1.4 billion, Up 13%
Full Year Diluted EPS was $4.56 and Adjusted EPS Doubled to $3.22
____________________
BROOMFIELD, COLORADO — February 23, 2021 — Crocs, Inc. (NASDAQ: CROX) a world leader in innovative casual footwear for women, men, and children, today announced its fourth quarter and full year 2020 financial results.
Andrew Rees, Chief Executive Officer, said, “We achieved record fourth quarter revenues and profitability and finished 2020 with very strong brand momentum. We are looking forward to an exceptional 2021 with accelerated revenue growth as we invest in digital, China, and our supply chain to support future growth. I am confident in our ability to continue to deliver outstanding profitability and strong cash flow. The Crocs brand has never been stronger and I am very excited about our future.”
Amounts referred to as "Adjusted" are Non-GAAP measures and include adjustments that are described under the heading "Reconciliation of GAAP Measures to Non-GAAP Measures." A reconciliation of these amounts to their GAAP counterparts are contained in the schedules below.
Fourth Quarter and Full Year 2020 Highlights
•Highest quarterly revenues in company history were achieved in the fourth quarter.
•Record 2020 revenues of $1.4 billion increased 12.6% over last year.
•Digital sales, which includes sales through our company-owned website, third party marketplaces, and e-tailers, grew 50.2% in 2020 to represent 41.5% of revenue versus 31.1% last year with growth in all regions.
•Direct-to-consumer comparable sales, which includes retail and e-commerce, increased 39.2% in 2020.
•2020 operating margin rose from 10.5% to 15.4% and adjusted operating margin grew from 11.6% to 18.9%.
•Full year diluted EPS was $4.56 per share. On a non-GAAP basis, diluted EPS doubled to $3.22.
Fourth Quarter 2020 Operating Results
•Revenues were $411.5 million, an increase of 56.5% from the same period last year, or 56.1% on a constant currency basis. E-commerce revenues grew 92.0%, wholesale revenues rose 52.2%, and retail comparable store sales increased 40.9%.
•Gross margin of 55.7% increased 770 basis points compared to 48.0% in the same period last year. Adjusted gross margin of 56.0% rose 670 basis points from the same period last year.
•SG&A expenses of $164.5 million increased from $117.9 million in the same period last year and SG&A as a percent of revenues improved by 480 basis points to 40.0%. Adjusted SG&A improved to 34.9% of revenues versus 44.4% for the same period last year.
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•Income from operations increased 673.5% to $64.6 million from $8.4 million for the same period last year. Operating margin rose to 15.7% from 3.2%. Adjusted income from operations rose 576.9% to $87.0 million and adjusted operating margin was 21.1% compared to 4.9% for the same period last year.
•Diluted earnings per share increased to $2.69 compared to $0.29 for the same period last year. Adjusted diluted earnings per share were exceptional at $1.06 compared to $0.12 for the same period last year.
2020 Operating Results
•Revenues were $1,386.0 million, an increase of 12.6% from the same period last year, or 13.5% on a constant currency basis. E-commerce revenues grew 58.2%, wholesale revenues rose 5.6%, and retail comparable store sales grew 21.2%.
•Gross margin of 54.1% increased 400 basis points compared to 50.1% last year. Adjusted gross margin of 54.6% rose 350 basis points from last year.
•SG&A expenses of $535.8 million increased from $488.4 million last year and SG&A as a percent of revenues improved by 100 basis points to 38.7%. Adjusted SG&A improved to 35.6% of revenues versus 39.5% for the same period last year.
•Income from operations increased 66.4% to $214.1 million from $128.6 million last year. Operating margin rose 490 basis points to 15.4%. Adjusted income from operations rose 83.6% to $262.6 million and adjusted operating margin was 18.9% compared to 11.6% last year.
•Diluted earnings per share increased 174.7% to $4.56 compared to $1.66 last year. Adjusted diluted earnings per share doubled to $3.22 compared to $1.61 for the same period last year.
2020 Geographic Summary
•Americas: Revenues of $863.6 million increased 35.7% on a constant currency basis.
•Asia Pacific: Revenues of $278.5 million decreased 19.2% on a constant currency basis.
•EMEA: Revenues of $243.7 million increased 1.5% on a constant currency basis.
2020 Channel Summary
•Wholesale: Revenues increased 5.6% to $692.9 million compared to $656.2 million for the same period last year.
•Retail: Revenues decreased 3.8% to $334.0 million compared to $347.4 million for the same period last year due to COVID-19 store closures.
•E-commerce: Revenues increased 58.2% to $359.0 million compared to $227.0 million for the same period last year.
•Digital sales grew 50.2% to 41.5% of total revenues versus 31.1% for the same period last year.
•Direct-to-consumer comparable sales grew 39.2% compared to 16.0% for the same period last year.
Balance Sheet and Cash Flow
•Cash and cash equivalents were $135.8 million as of December 31, 2020, up from $108.3 million as of December 31, 2019.
•Inventories increased to $175.1 million as of December 31, 2020 compared to $172.0 million as of December 31, 2019.
•Cash provided by operating activities rose 196.7% to $266.9 million during 2020 compared to $90.0 million during 2019.
•Capital expenditures were $42.0 million during 2020 compared to $36.6 million during 2019.
•Borrowings at December 31, 2020 were $180.0 million. Our liquidity position remains strong with $319.4 million in available borrowing capacity.
Share Repurchase Activity
During the fourth quarter of 2020, we repurchased 1.7 million shares of our common stock for $131.7 million, which included a $125 million accelerated share repurchase (“ASR”). For the full year, we repurchased 3.2 million shares of our common stock for $170.8 million. Including the impact of the final ASR share delivery in January 2021, the average price for share repurchase in 2020 was $46.50 per share. At year end, $337.8 million of our $1.0 billion share repurchase authorization remained available for future repurchases.
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Financial Outlook
First Quarter 2021
With respect to the first quarter of 2021, we expect:
•Revenue growth to be between 40% and 50% compared to first quarter 2020 revenues of $281.2 million
•Non-GAAP adjustments of approximately $3 million related to distribution center investments that will impact gross margin
•Adjusted operating margin to be between 17% and 18%
Full Year 2021
With respect to 2021, we expect:
•Revenue growth to be between 20% and 25% compared to 2020 revenues of $1,386.0 million
•Non-GAAP adjustments of approximately $12 to $15 million related to distribution center investments that will impact gross margin
•Adjusted operating margin to be between 18% and 19%
•GAAP tax rate of approximately 25% and non-GAAP effective tax rate of approximately 16% to 18%
•Capital expenditures of approximately $100 to $130 million for supply chain investments to support growth
Conference Call Information:
A conference call to discuss fourth quarter and full year 2020 results is scheduled for today, February 23, 2021, at 8:30 am ET. To receive conference call details, please register at the Investor Relations section of the Crocs website, investors.crocs.com. The webcast will also be available live and on replay through February 23, 2022 at this site.
About Crocs, Inc.:
Crocs, Inc. (Nasdaq: CROX) is a world leader in innovative casual footwear for women, men, and children, combining comfort and style with a value that consumers know and love. The vast majority of shoes within Crocs’ collection contains Croslite™ material, a proprietary, molded footwear technology, delivering extraordinary comfort with each step.
In 2021, Crocs declares that expressing yourself and being comfortable are not mutually exclusive. To learn more about Crocs or our global Come As You Are™ campaign, please visit www.crocs.com or follow @Crocs on Facebook, Instagram and Twitter.
Forward Looking Statements:
This news release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding full year and first quarter 2021 financial outlook and future profitability, cash flows, and brand strength. These statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to be materially different from any future results, performances, or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to, the following: current global financial conditions; the effect of competition in our industry; our ability to effectively manage our future growth or declines in revenues; changing consumer preferences; our ability to maintain and expand revenues and gross margin; our ability to accurately forecast consumer demand for our products; our ability to successfully implement our strategic plans; our ability to develop and sell new products; our ability to obtain and protect intellectual property rights; the effect of potential adverse currency exchange rate fluctuations and other international operating risks; and other factors described in our most recent Annual Report on Form 10-K under the heading “Risk Factors” and our subsequent filings with the Securities and Exchange Commission. Readers are encouraged to review that section and all other disclosures appearing in our filings with the Securities and Exchange Commission.
All information in this document speaks as of February 23, 2021. We do not undertake any obligation to update publicly any forward-looking statements, including, without limitation, any estimate regarding revenues, margins, capital expenditures, or SG&A, whether as a result of the receipt of new information, future events, or otherwise.
Category:Investors
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CROCS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended December 31,
Year Ended December 31,
2020
2019
2020
2019
Revenues
$
411,506
$
262,979
$
1,385,951
$
1,230,593
Cost of sales
182,422
136,741
636,003
613,537
Gross profit
229,084
126,238
749,948
617,056
Selling, general and administrative expenses
164,453
117,882
535,824
488,407
Income from operations
64,631
8,356
214,124
128,649
Foreign currency gains (losses), net
306
(430)
(1,128)
(1,323)
Interest income
26
108
215
601
Interest expense
(1,149)
(1,893)
(6,742)
(8,636)
Other income (expense), net
(391)
79
510
31
Income before income taxes
63,423
6,220
206,979
119,322
Income tax benefit
(119,907)
(13,693)
(105,882)
(175)
Net income
$
183,330
$
19,913
$
312,861
$
119,497
Net income per common share:
Basic
$
2.75
$
0.29
$
4.64
$
1.70
Diluted
$
2.69
$
0.29
$
4.56
$
1.66
Weighted average common shares outstanding:
Basic
66,729
68,441
67,386
70,357
Diluted
68,054
69,843
68,544
71,771
Gross margin
55.7
%
48.0
%
54.1
%
50.1
%
Operating margin
15.7
%
3.2
%
15.4
%
10.5
%
Selling, general and administrative expenses as a percentage of revenues
40.0
%
44.8
%
38.7
%
39.7
%
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CROCS, INC. AND SUBSIDIARIES
EARNINGS PER SHARE
(in thousands, except per share data)
Three Months Ended December 31,
Year Ended December 31,
2020
2019
2020
2019
Numerator:
Net income
$
183,330
$
19,913
$
312,861
$
119,497
Denominator:
Weighted average common shares outstanding - basic
66,729
68,441
67,386
70,357
Plus: Dilutive effect of stock options and unvested restricted stock units
1,325
1,402
1,158
1,414
Weighted average common shares outstanding - diluted
68,054
69,843
68,544
71,771
Net income per common share:
Basic
$
2.75
$
0.29
$
4.64
$
1.70
Diluted
$
2.69
$
0.29
$
4.56
$
1.66
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CROCS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and par value amounts)
December 31,
2020
2019
ASSETS
Current assets:
Cash and cash equivalents
$
135,802
$
108,253
Restricted cash — current
1,542
1,500
Accounts receivable, net of allowances of $21,093 and $18,797, respectively
149,847
108,199
Inventories
175,121
172,028
Income taxes receivable
1,857
1,341
Other receivables
10,816
8,711
Prepaid expenses and other assets
17,856
25,350
Total current assets
492,841
425,382
Property and equipment, net
57,467
47,405
Intangible assets, net
37,636
47,095
Goodwill
1,719
1,578
Deferred tax assets, net
350,784
24,747
Restricted cash
1,929
2,292
Right-of-use assets
167,421
182,228
Other assets
8,926
8,075
Total assets
$
1,118,723
$
738,802
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
112,778
$
95,754
Accrued expenses and other liabilities
126,704
108,677
Income taxes payable
5,038
4,207
Current operating lease liabilities
47,064
48,585
Total current liabilities
291,584
257,223
Long-term income taxes payable
205,974
4,522
Long-term borrowings
180,000
205,000
Long-term operating lease liabilities
146,401
140,148
Other liabilities
4,131
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Total liabilities
828,090
606,897
Commitments and contingencies
Stockholders’ equity:
Common stock, par value $0.001 per share, 105.0 million and 104.0 million issued, 65.9 million and 68.2 million shares outstanding, respectively
105
104
Treasury stock, at cost, 39.1 million and 35.8 million shares, respectively
(688,849)
(546,208)
Additional paid-in capital
482,385
495,903
Retained earnings
553,346
240,485
Accumulated other comprehensive loss
(56,354)
(58,379)
Total stockholders’ equity
290,633
131,905
Total liabilities and stockholders’ equity
$
1,118,723
$
738,802
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CROCS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Year Ended December 31,
2020
2019
Cash flows from operating activities:
Net income
$
312,861
$
119,497
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
27,619
24,213
Operating lease cost
61,583
60,142
Inventory donations
8,994
109
Provision for doubtful accounts, net
5,779
1,566
Share-based compensation
16,361
14,412
Unrealized foreign currency gain, net
126
(1,140)
Loss (gain) on disposals of assets
340
(213)
Asset impairments
21,071
—
Deferred taxes
(325,061)
(16,259)
Other non-cash items
4,841
(1,072)
Changes in operating assets and liabilities:
Accounts receivable, net of allowances
(47,045)
(15,015)
Inventories
(13,462)
(48,156)
Prepaid expenses and other assets
5,007
(4,012)
Accounts payable
23,229
6,032
Accrued expenses and other liabilities
22,358
13,265
Operating lease liabilities
(61,178)
(64,313)
Income taxes
203,479
902
Cash provided by operating activities
266,902
89,958
Cash flows from investing activities:
Purchases of property, equipment, and software
(42,033)
(36,576)
Proceeds from disposal of property and equipment
463
616
Other
(192)
(276)
Cash used in investing activities
(41,762)
(36,236)
Cash flows from financing activities:
Proceeds from borrowings
210,000
315,000
Repayments of borrowings
(235,000)
(230,000)
Dividends — Series A convertible preferred stock (1)
—
(2,985)
Repurchases of common stock
(170,832)
(147,190)
Other
(2,206)
(3,463)
Cash used in financing activities
(198,038)
(68,638)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
126
(569)
Net change in cash, cash equivalents, and restricted cash
27,228
(15,485)
Cash, cash equivalents, and restricted cash — beginning of year
112,045
127,530
Cash, cash equivalents, and restricted cash — end of year
$
139,273
$
112,045
Cash paid for interest
$
6,658
$
7,519
Cash paid for income taxes
20,816
16,050
(1) Represents $3.0 million paid to induce conversion of the Series A Convertible Preferred Stock to common stock during the year ended December 31, 2019.
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CROCS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
In addition to financial measures presented on the basis of accounting principles generally accepted in the United States of America (“GAAP”), we present “Non-GAAP cost of sales,” “Non-GAAP gross profit,” “Non-GAAP gross margin,” “Non-GAAP selling, general, and administrative expenses,” “Non-GAAP income from operations and operating margin,” “Non-GAAP income tax expense (benefit) and effective tax rate,” “Non-GAAP net income,” “Non-GAAP weighted average common shares outstanding - basic and diluted,” and “Non-GAAP basic and diluted net income per common share,” which are non-GAAP financial measures. We also present future period guidance for “Non-GAAP adjusted operating margin” and “Non-GAAP effective tax rate.” Non-GAAP results and guidance exclude the impact of items that management believes affect the comparability or underlying business trends in our consolidated financial statements for the periods presented.
We also present certain information related to our current period results of operations through “constant currency,” which is a non-GAAP financial measure and should be viewed as a supplement to our results of operations and presentation of reportable segments under GAAP. Constant currency represents current period results that have been retranslated using exchange rates used in the prior year comparative period. We believe the use of constant currency enhances the visibility of the underlying business trends excluding the impact of foreign currency exchange rate fluctuations.
We use non-GAAP results to assist in comparing business trends from period to period on a consistent basis in communications with the board of directors, stockholders, analysts, and investors concerning our financial performance. We believe that these non-GAAP measures are useful to investors and other users of our consolidated financial statements as an additional tool for evaluating operating performance and trends. For the three months and year ended December 31, 2020, we believe it is helpful to evaluate our results excluding the impacts of excluding the impacts of various adjustments relating to special or nonrecurring
items. Investors should not consider these non-GAAP measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
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CROCS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
Non-GAAP cost of sales, gross profit, and gross margin reconciliation:
Three Months Ended December 31,
Year Ended December 31,
2020
2019
2020
2019
(in thousands)
GAAP revenues
$
411,506
$
262,979
$
1,385,951
$
1,230,593
GAAP cost of sales
$
182,422
$
136,741
$
636,003
$
613,537
New distribution centers (1)
(1,550)
(3,413)
(4,186)
(11,394)
COVID-19 inventory write-off (2)
—
—
(2,396)
—
Other
—
84
(119)
(91)
Total adjustments
(1,550)
(3,329)
(6,701)
(11,485)
Non-GAAP cost of sales
$
180,872
$
133,412
$
629,302
$
602,052
GAAP gross profit
$
229,084
$
126,238
$
749,948
$
617,056
GAAP gross margin
55.7
%
48.0
%
54.1
%
50.1
%
Non-GAAP gross profit
$
230,634
$
129,567
$
756,649
$
628,541
Non-GAAP gross margin
56.0
%
49.3
%
54.6
%
51.1
%
(1) Represents expenses, including expansion costs, related to our distribution centers in Dayton, Ohio and Dordrecht, the Netherlands and initial costs for our new third-party operated distribution center in Chiba, Japan.
(2) Represents an inventory write-off in our Asia Pacific segment associated with the impact of COVID-19.
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Non-GAAP selling, general and administrative expenses reconciliation:
Three Months Ended December 31,
Year Ended December 31,
2020
2019
2020
2019
(in thousands)
GAAP revenues
$
411,506
$
262,979
$
1,385,951
$
1,230,593
GAAP selling, general and administrative expenses
$
164,453
$
117,882
$
535,824
$
488,407
Donations of inventory
70
—
(9,900)
—
COVID-19 severance costs
—
—
(2,403)
—
COVID-19 impact of bad debt expense (1)
315
—
(4,118)
—
Other COVID-19 costs (2)
(18)
—
(845)
—
Asset impairments (3)
(21,071)
—
(21,071)
—
Duplicate headquarters rent (4)
(154)
—
(1,274)
—
Non-recurring expenses associated with cost reduction initiatives in 2019
—
(584)
—
(2,282)
Offering fees (5)
—
(589)
—
(589)
Other (6)
8
—
(2,125)
—
Total adjustments
(20,850)
(1,173)
(41,736)
(2,871)
Non-GAAP selling, general and administrative expenses (7)
$
143,603
$
116,709
$
494,088
$
485,536
GAAP selling, general and administrative expenses as a percent of revenues
40.0
%
44.8
%
38.7
%
39.7
%
Non-GAAP selling, general and administrative expenses as a percent of revenues
34.9
%
44.4
%
35.6
%
39.5
%
(1) Represents bad debt expense associated with the impact of COVID-19 on wholesale partners in our Asia Pacific and Americas segments.
(2) Represents costs incurred in response to the COVID-19, including hazard pay, cleaning costs, and legal costs.
(3) Represents impairments to our long-lived assets for a retail store in New York City and for our former corporate headquarters in Niwot, Colorado.
(4) Represents ongoing duplicate rent costs associated with our move to our new headquarters in Broomfield, Colorado, while we conclude the lease for our former headquarters.
(5) Represents fees associated with the November 4, 2019 underwritten public offering, in which certain investment funds affiliated with The Blackstone Group Inc. sold 6.9 million shares of our stock to Morgan Stanley & Co. LLC. We did not receive any proceeds from this sale.
(6) Represents non-recoverable duties, non-recurring costs related to the closure of company-owned retail stores in Australia, employee severance costs, and various other immaterial items.
(7) Non-GAAP selling, general and administrative expenses are presented gross of tax.
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Non-GAAP income from operations and operating margin reconciliation:
Three Months Ended December 31,
Year Ended December 31,
2020
2019
2020
2019
(in thousands)
GAAP revenues
$
411,506
$
262,979
$
1,385,951
$
1,230,593
GAAP income from operations
$
64,631
$
8,356
$
214,124
$
128,649
Non-GAAP cost of sales adjustments (1)
1,550
3,329
6,701
11,485
Non-GAAP selling, general and administrative expenses adjustments (2)
20,850
1,173
41,736
2,871
Non-GAAP income from operations
$
87,031
$
12,858
$
262,561
$
143,005
GAAP operating margin
15.7
%
3.2
%
15.4
%
10.5
%
Non-GAAP operating margin
21.1
%
4.9
%
18.9
%
11.6
%
(1) See ‘Non-GAAP cost of sales and gross margin reconciliation’ above for more details.
(2) See ‘Non-GAAP selling, general and administrative expenses reconciliation’ above for more details.
Non-GAAP income tax expense (benefit) and effective tax rate reconciliation:
Three Months Ended December 31,
Year Ended December 31,
2020
2019
2020
2019
(in thousands)
GAAP income from operations
$
64,631
$
8,356
$
214,124
$
128,649
GAAP income before income taxes
63,423
6,220
206,979
119,322
Non-GAAP income from operations (1)
$
87,031
$
12,858
$
262,561
$
143,005
GAAP non-operating income (expenses):
Foreign currency gains (losses), net
306
(430)
(1,128)
(1,323)
Interest income
26
108
215
601
Interest expense
(1,149)
(1,893)
(6,742)
(8,636)
Other income (expense), net
(391)
79
510
31
Non-GAAP income before income taxes
$
85,823
$
10,722
$
255,416
$
133,678
GAAP income tax benefit
$
(119,907)
$
(13,693)
$
(105,882)
$
(175)
Tax effect of non-GAAP operating adjustments
6,014
1,126
12,123
3,589
Benefit of U.S. deferred tax assets previously subject to valuation allowance in 2019
—
14,655
—
14,655
Intra-entity IP transfer (2)
127,718
—
127,718
—
Non-GAAP income tax expense
$
13,825
$
2,088
$
33,959
$
18,069
GAAP effective income tax rate
(189.1)
%
(220.1)
%
(51.2)
%
(0.1)
%
Non-GAAP effective income tax rate
16.1
%
19.5
%
13.3
%
13.5
%
(1) See ‘Non-GAAP income from operations and operating margin reconciliation’ above for more details.
(2) Represents changes to our international legal structure, including an intra-entity transfer of certain intellectual property rights, primarily to align with current and future international operations. The transfer resulted in a step-up in tax basis of intellectual property rights and a correlated increase in foreign deferred tax assets based on the fair value of the transferred intellectual property rights.
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Non-GAAP earnings per share reconciliation:
Three Months Ended December 31,
Year Ended December 31,
2020
2019
2020
2019
(in thousands, except per share data)
Numerator:
GAAP net income
$
183,330
$
19,913
$
312,861
$
119,497
Non-GAAP cost of sales adjustments (1)
1,550
3,329
6,701
11,485
Non-GAAP selling, general and administrative expenses adjustments (2)
20,850
1,173
41,736
2,871
Non-GAAP other income adjustment (3)
—
—
(919)
—
Tax effect of non-GAAP adjustments (4)
(133,732)
(15,781)
(139,841)
(18,244)
Non-GAAP net income
$
71,998
$
8,634
$
220,538
$
115,609
Denominator:
GAAP weighted average common shares outstanding - basic
66,729
68,441
67,386
70,357
Plus: GAAP dilutive effect of stock options and unvested restricted stock units
1,325
1,402
1,158
1,414
GAAP weighted average common shares outstanding - diluted
68,054
69,843
68,544
71,771
GAAP net income per common share:
Basic
$
2.75
$
0.29
$
4.64
$
1.70
Diluted
$
2.69
$
0.29
$
4.56
$
1.66
Non-GAAP net income per common share:
Basic
$
1.08
$
0.13
$
3.27
$
1.64
Diluted
$
1.06
$
0.12
$
3.22
$
1.61
(1) See ‘Non-GAAP cost of sales, gross profit, and gross margin reconciliation’ above for more information.
(2) See ‘Non-GAAP selling, general and administrative expenses reconciliation’ above for more information.
(3) Represents a fair value adjustment associated with our donations of inventory.
(4) See ‘Non-GAAP income tax expense (benefit) and effective tax rate reconciliation’ above for more information.
12
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL GUIDANCE
First Quarter 2021:
Approximately:
Non-GAAP operating margin reconciliation:
GAAP operating margin
16% to 17%
Non-GAAP adjustments associated with distribution center investments
1%
Non-GAAP operating margin
17% to 18%
Full Year 2021:
Approximately:
Non-GAAP operating margin reconciliation:
GAAP operating margin
17% to 18%
Non-GAAP adjustments associated with distribution center investments
1%
Non-GAAP operating margin
18% to 19%
Non-GAAP effective tax rate reconciliation:
GAAP effective tax rate
25%
Non-GAAP adjustments associated with amortization of IP
(7)% to (9)%
Non-GAAP effective tax rate
16% to 18%
13
CROCS, INC. AND SUBSIDIARIES
REVENUES BY CHANNEL
Three Months Ended December 31,
Year Ended December 31,
% Change
Constant Currency
% Change (1)
2020
2019
2020
2019
Q4 ‘20-’19
2020-2019
Q4 ‘20-‘19
2020-2019
($ in thousands)
Wholesale:
Americas
$
134,671
$
58,438
$
390,930
$
275,284
130.5
%
42.0
%
134.1 %
44.0
%
Asia Pacific
23,712
37,937
133,416
207,405
(37.5)
%
(35.7)
%
(38.5)
%
(34.7)
%
EMEA
31,902
28,795
168,410
173,480
10.8
%
(2.9)
%
6.9 %
(2.0)
%
Other businesses
57
(117)
163
58
(148.7)
%
181.0
%
(148.7)
%
181.0
%
Total wholesale
190,342
125,053
692,919
656,227
52.2
%
5.6
%
52.7 %
7.0
%
Retail:
Americas
90,651
59,578
249,238
241,694
52.2
%
3.1
%
52.2 %
3.1
%
Asia Pacific
13,145
13,892
64,789
74,793
(5.4)
%
(13.4)
%
(9.1)
%
(12.5)
%
EMEA
4,019
5,422
19,989
30,875
(25.9)
%
(35.3)
%
(23.0)
%
(33.7)
%
Total retail
107,815
78,892
334,016
347,362
36.7
%
(3.8)
%
36.2 %
(3.5)
%
E-commerce:
Americas
84,936
37,741
223,445
123,537
125.0
%
80.9
%
124.9 %
81.0
%
Asia Pacific
14,922
12,521
80,310
65,874
19.2
%
21.9
%
13.1 %
22.2
%
EMEA
13,491
8,772
55,261
37,593
53.8
%
47.0
%
47.7 %
46.8
%
Total e-commerce
113,349
59,034
359,016
227,004
92.0
%
58.2
%
89.7 %
58.3
%
Total revenues
$
411,506
$
262,979
$
1,385,951
$
1,230,593
56.5
%
12.6
%
56.1
%
13.5
%
Total by segment:
Americas
$
310,258
$
155,757
$
863,613
$
640,515
99.2
%
34.8
%
100.5
%
35.7
%
Asia Pacific
51,779
64,350
278,515
348,072
(19.5)
%
(20.0)
%
(22.1)
%
(19.2)
%
EMEA
49,412
42,989
243,660
241,948
14.9
%
0.7
%
11.4 %
1.5
%
Other businesses
57
(117)
163
58
(148.7)
%
181.0
%
(148.7)
%
181.0
%
Total revenues
$
411,506
$
262,979
1,385,951
$
1,230,593
56.5
%
12.6
%
56.1
%
13.5
%
`
(1) Reflects year over year change as if the current period results were in constant currency, which is a non-GAAP financial measure. See “Reconciliation of GAAP Measures to Non-GAAP Measures” for more information.
14
CROCS, INC. AND SUBSIDIARIES
RETAIL STORE COUNTS
September 30, 2020
Opened
Closed/Transferred
December 31, 2020
Type:
Outlet stores
186
1
1
186
Retail stores
100
1
1
100
Store-in-store
65
—
—
65
Total
351
2
2
351
Operating segment:
Americas
165
—
—
165
Asia Pacific
136
2
1
137
EMEA
50
—
1
49
Total
351
2
2
351
December 31, 2019
Opened
Closed/Transferred
December 31, 2020
Type:
Outlet stores
193
6
13
186
Retail stores
109
4
13
100
Store-in-store
65
1
1
65
Total
367
11
27
351
Operating segment:
Americas
165
2
2
165
Asia Pacific
145
7
15
137
EMEA
57
2
10
49
Total
367
11
27
351
15
CROCS, INC. AND SUBSIDIARIES
DIGITAL SALES PERCENTAGE, COMPARABLE RETAIL STORE SALES, AND DIRECT-TO-CONSUMER COMPARABLE SALES
Digital sales, which includes sales through our company-owned website, third party marketplaces, and e-tailers, as a percent of total revenues, by operating segment were:
Three Months Ended December 31,
Year Ended December 31,
2020
2019
2020
2019
Digital sales as a percent of total revenues:
Americas
37.9
%
34.0
%
38.5
%
29.5
%
Asia Pacific
40.2
%
30.0
%
39.2
%
28.1
%
EMEA
59.8
%
41.3
%
54.8
%
39.9
%
Global
40.8
%
34.2
%
41.5
%
31.1
%
Comparable retail store sales and direct-to-consumer comparable sales by reportable operating segment are as follows:
Constant Currency (1)
Three Months Ended December 31,
Year Ended December 31,
2020
2019
2020
2019
Comparable retail store sales: (2)
Americas
54.4
%
24.2
%
32.8
%
18.8
%
Asia Pacific
(2.7)
%
(5.8)
%
(1.2)
%
(2.0)
%
EMEA
(4.5)
%
(1.4)
%
(5.4)
%
5.0
%
Global
40.9
%
16.0
%
21.2
%
12.4
%
Constant Currency (1)
Three Months Ended December 31,
Year Ended December 31,
2020
2019
2020
2019
Direct-to-consumer comparable sales (includes retail and e-commerce): (2)
Americas
84.4
%
28.1
%
54.4
%
21.0
%
Asia Pacific
4.5
%
5.7
%
9.6
%
5.6
%
EMEA
33.3
%
11.5
%
29.7
%
13.3
%
Global
63.8
%
21.7
%
39.2
%
16.0
%
(1) Reflects period over period change as if the current period results were in constant currency, which is a non-GAAP financial measure. See “Reconciliation of GAAP to Non-GAAP Measures” for more information.
(2) Comparable store status is determined on a monthly basis. Comparable store sales include the revenues of stores that have been in operation for more than twelve months. Stores in which selling square footage has changed more than 15% as a result of a remodel, expansion, or reduction are excluded until the thirteenth month in which they have comparable prior year sales. Temporarily closed stores are excluded from the comparable store sales calculation during the month of closure and in the same month in the following year. Location closures in excess of three months are excluded until the thirteenth month post re-opening. E-commerce revenues are based on same site sales period over period.