Crocs Sees 53% Growth by Meeting Consumer Demand for Casualization

Consumer demand for casualization, comfort, sustainability and personalization is driving growth at Crocs.

The casual footwear company expects year-over-year revenue growth of 53% in 2022 — higher than its recent guidance of 49% to 52% growth — and 10% to 13% in 2023, Crocs said in a Tuesday (Jan. 10) press release.

The company’s stock is on the rise as well, with its price having doubled over the last six months.

“2022 was an exceptional year for Crocs Inc., with strong consumer demand for both the Crocs and Heydude brands driving expected 53% revenue growth,” Crocs CEO Andrew Rees said in the release.

Other companies have seen consumers move toward casual apparel as well.

For example, specialty athletic retailer Foot Locker said sales of sneakers are growing because the products are fun and casual.

“We’re at the intersection of sports, fitness, fashion and the casualization of society, and the tailwinds for sneakers I believe will be persistent for many years to come,” Foot Locker President and CEO Mary Dillon said in November.

Similarly, athletic performance apparel brand Under Armour said it sees a $300 billion opportunity by addressing the market for casual wear.

At Crocs, which sells casual footwear like sandals, clogs, flats and wedges, revenue of the Crocs brand is expected to be up 15% while that of Heydude is estimated to leap 70%, according to an investor presentation released Tuesday for the ICR Conference 2023.

Crocs acquired Heydude in 2021. As PYMNTS reported at the time, the purchase potentially allowed the company to give consumers the ability to customize their Crocs.

The firm also saw potential for growing the brand globally, saying during its most recent earnings call that the Heydude brand should surpass $1 billion in 2023 as it expands overseas.

In its Tuesday presentation, Crocs said the “Heydude acquisition continues to outperform from a growth, consumer resonance and profit perspective.”

Crocs attributed the company’s growth to its brands’ alignment with long-term consumer trends as well as its growing international presence and digital penetration, according to the presentation.

The Crocs brand is estimated to have seen 34% growth in international revenues, with international markets now accounting for 38% of the brand’s revenue and 29% of the company’s overall revenue, the presentation said.

The company’s digital channels — including both its own websites and eTailers — now account for 37% of sales, per the presentation.

Looking ahead, Crocs plans to make significant new product introductions for both brands, to continue to grow in all markets, but especially internationally, to market Crocs sandals robustly and to deepen the Heydude product assortments sold through top U.S. wholesale accounts, according to the presentation.

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