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Crocs aims to achieve 5 billion dollars revenue target by 2026

By Prachi Singh

15 Sep 2021

Business

Image: Crocs, Facebook

At its investor day, Crocs, Inc. provided an overview of the company’s long-term strategy and key initiatives to deliver sustainable, profitable growth.

The company said in a statement that it outlined a five-year growth framework to achieve 5 billion dollars in revenues, representing a compound annual growth rate in excess of 17 percent using the midpoint of the company’s 2021 guidance as the base year.

“We are incredibly proud of the track record of growth and shareholder value creation since we first embarked on the turnaround of the Crocs brand in 2014,” said Andrew Rees, chief executive officer, adding, “Looking forward, we expect the Crocs brand to grow to over 5 billion dollars in sales by 2026.”

The company added that four key drivers underpin this growth – growing digital sales, gaining market share in sandals, capturing growth in Asia and innovating in product and marketing. With digital remaining a top priority, Crocs expects at least 50 percent of total revenues to be derived from digital channels by the end of 2026.

Along with revenue growth, the company expects to deliver high levels of profitability and cash flow. By 2026, non-GAAP operating margins are expected to exceed 26 percent and annual free cash flow to surpass 1 billion dollars.

“While Covid-19 and its impact on our manufacturing in Vietnam remains fluid, we are reiterating our full year 2021 guidance provided in July and we are confident in our ability to achieve a 17 percent compound annual growth rate delivering over 5 billion dollars of revenue by 2026,” said Anne Mehlman, the company’s chief financial officer.