PR Newswire | Feb 23, 2021 07:01AM EST

02/23 06:00 CST

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, Colo., Feb. 23, 2021

BROOMFIELD, Colo., Feb. 23, 2021 /PRNewswire/ -- 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. * 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.

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(tm) 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(tm) 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

CROCS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data)



Three Months Ended Year Ended December 31, 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 revenues40.0 %44.8 %38.7 %39.7 %

CROCS, INC. AND SUBSIDIARIES EARNINGS PER SHARE (in thousands, except per share data)



Three Months Ended Year Ended December 31, 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 units1,325 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

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 4

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, 65.9 105 104 million and 68.2 million shares outstanding, respectively

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

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.

CROCS, INC. AND SUBSIDIARIESRECONCILIATION 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.

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 Year Ended December 31, 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.

Non-GAAP selling, general and administrative expenses reconciliation:



Three Months Ended Year Ended December 31, 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.

Non-GAAP income from operations and operating margin reconciliation:



Three Months Ended Year Ended December 31, 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 Year Ended December 31, 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 - 14,655 - 14,655 in 2019

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.

Non-GAAP earnings per share reconciliation:



Three Months Ended Year Ended December 31, 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 units1,325 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.

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 investments1%

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 investments1%

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%

CROCS, INC. AND SUBSIDIARIES REVENUES BY CHANNEL



Three Months Ended Year Ended Constant Currency December 31, December 31, % Change % 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.

CROCS, INC. AND SUBSIDIARIES RETAIL STORE COUNTS



September Opened Closed/TransferredDecember 31, 30, 2020 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, Opened Closed/TransferredDecember 31, 2019 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



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 Year Ended December 31, 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 Year Ended December 31, 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 Year Ended December 31, 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.

Investor Contact:Cori Lin, Crocs, Inc.

(303) 848-5053

clin@crocs.com



PR Contact: Melissa Layton, Crocs, Inc.

(303) 848-7885

mlayton@crocs.com

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SOURCE Crocs, Inc.