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Crocs with $ 5 billion in revenue by 2026

CrocsKnown for its readily recognizable clogs, shoemakers have unveiled a new five-year growth framework that hopes to achieve $ 5 billion in revenue by 2026, especially through digital expansion.

Crocs’ five-year plan means a CAGR of 17%-Photo: Crocs

“We are very proud of our track record of growth and shareholder value creation since we launched the Crocs brand turnaround in 2014,” said Andrew Rees, CEO of the company, in a release.

“In the future, we expect Crocs brand sales to exceed $ 5 billion by 2026,” he added. “We are confident in our ability to achieve this growth while maintaining industry-leading profitability, creating significant shareholder value and having a positive impact on the planet and our communities.”

Crocs’ five-year strategy predicts an annual compound interest growth rate of 17%, which is based on the midpoint of the company’s 2021 guidance. Promoting digital growth remains a brand’s “top priority” and we expect 50% of total revenue to come from digital channels by the end of 2026.

In addition to digital development, the company outlines three other key areas of focus in its growth strategy: gaining market share in sandals, gaining growth in Asia, and innovation in both products and marketing. bottom.

Crox expects high levels of profitability and cash flow through its five-year framework, with non-GAAP operating margin expected to exceed 26% by 2026 and free cash flow of 1 billion. It is expected to exceed the dollar.

Crocs CFO Anne Mehlman emphasized the uncertainties surrounding the ongoing Covid-19 pandemic, especially the impact on the brand’s manufacturing operations in Vietnam, as a potential obstacle to the company’s strategy. Despite being keen on emphasizing the brand, we are confident in our ability to reach our 2026 goals.

Second quarter ended June 30, 2021. Crocs achieved revenue of $ 640.8 million, 93.3% increase from the previous year. The company’s net income was $ 319 million, or $ 4.93 per diluted share.

On Tuesday, shoe makers repeated the 2021 year-round guidance. It forecasts revenue growth of 60% to 65% compared to $ 1.39 billion in 2020.

In addition to its financial goals, Crocs is pursuing ambitious sustainability goals such as achieving net zero emissions by 2030 and becoming a 100% vegan brand by the end of 2021.As part of these goals, the brand recently announced Launch of new bio-based version of proprietary Crosslite foam material..

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Crocs with $ 5 billion in revenue by 2026

Source link Crocs with $ 5 billion in revenue by 2026

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