Crocs’ Crazy Digital Growth
Crocs is one of those lucky brands that has thrived during the pandemic given it’s comfortable, easy-to-wear footwear styles.
But what caught our eye in the company’s Q2 earnings report released this morning is just how much Crocs’ digital sales have grown.
Nearly every company’s digital sales jumped significantly during the pandemic, but the Crocs numbers show that the shift to digital is sticking around even after stores have reopened.
Crocs digital sales grew 99% in Q2 2021 vs. Q2 2019. Compared to 2020 when digital sales skyrocketed during the pandemic, Crocs’ digital sales increased 25%. Digital sales now account for 36% of total revenue.
The digital numbers put context around Crocs’ decision to follow Nike’s lead and trim smaller wholesale accounts to focus on the margin-rich DTC business. Brands are also partnering more closely with key strategic wholesale customers, especially pure play e-commerce retailers or those with a strong digital as well as brick-and-mortar business.
Overall, Crocs total Q2 sales reached $641 million, a 79% increase vs. Q2 2019, with gross margin up 820 basis points.
The company now expects full year revenue to increase 60% to 65% over 2020.
Long term, Crocs believes the sandals category and the Asia region are the company’s biggest growth opportunities.