卡洛馳 (CROX) 2022 Q1 法說會逐字稿

Good morning, and welcome to the Crocs, Inc. First Quarter 2022 Earnings Call. (Operator Instructions) Please note this event is being recorded. I'd now like to turn the conference over to Cori Lin, Vice President of Corporate Finance. Please go ahead.

早上好，歡迎參加 Crocs, Inc. 2022 年第一季度財報電話會議。 （操作員說明）請注意正在記錄此事件。我現在想將會議轉交給企業財務副總裁 Cori Lin。請繼續。

Good morning, everyone, and thank you for joining us today for the Crocs First Quarter 2022 Earnings Call. Earlier this morning, we announced our latest quarterly results, and a copy of the press release may be found on our website at crocs.com. We would like to remind you that some of the information provided on this call is forward-looking and accordingly is subject to the safe harbor provisions of the federal securities laws. These statements include, but are not limited to, statements regarding the acquisition of HEYDUDE and the benefits thereof; Crocs strategy, plans, objectives, expectations, financials or otherwise and intentions; future financial results and growth potential; anticipated product portfolio; our ability to create and deliver shareholder value and statements regarding potential impacts to our business related to the COVID-19 pandemic. 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.

大家早上好，感謝您今天參加 Crocs 2022 年第一季度財報電話會議。今天早上早些時候，我們公佈了最新的季度業績，新聞稿的副本可以在我們的網站 crocs.com 上找到。我們想提醒您，本次電話會議中提供的一些信息具有前瞻性，因此受聯邦證券法的安全港條款的約束。這些陳述包括但不限於關於收購 HEYDUDE 及其利益的陳述； Crocs 戰略、計劃、目標、期望、財務或其他方面和意圖；未來的財務業績和增長潛力；預期的產品組合；我們創造和交付股東價值的能力以及關於 COVID-19 大流行對我們業務的潛在影響的聲明。這些陳述涉及已知和未知的風險、不確定性和其他因素，可能導致我們的實際結果、業績或成就與前瞻性陳述中明示或暗示的任何未來結果、業績或成就存在重大差異。

Crocs is not obligated to update these forward-looking statements to reflect the impact of future events, except as required by applicable law. We caution you that all forward-looking statements are subject to risks and uncertainties described in the Risk Factors section of our annual report on Form 10-K and our subsequent filings with the SEC. Accordingly, actual results could differ materially from those described on this call. Please refer to Crocs annual report on Form 10-K as well as other documents filed with the SEC for more information relating to these risk factors.

Crocs 沒有義務更新這些前瞻性陳述以反映未來事件的影響，除非適用法律要求。我們提醒您，所有前瞻性陳述都受到我們關於 10-K 表格的年度報告的風險因素部分以及我們隨後向 SEC 提交的文件中描述的風險和不確定性的影響。因此，實際結果可能與本次電話會議中描述的結果大不相同。有關這些風險因素的更多信息，請參閱 Crocs 的 10-K 表格年度報告以及向 SEC 提交的其他文件。

Certain financial metrics that we refer to as adjusted or non-GAAP are non-GAAP measures. A reconciliation of these amounts to their GAAP counterparts is contained in the press release we issued earlier this morning. Joining us on the call today are Andrew Rees, Chief Executive Officer; and Anne Mehlman, Executive Vice President and Chief Financial Officer. Following their prepared remarks, we will open the call for your questions. At this time, I'll turn the call over to Andrew.

我們稱為調整後或非公認會計原則的某些財務指標是非公認會計原則指標。我們今天上午早些時候發布的新聞稿中包含了這些金額與其 GAAP 對應金額的對賬。今天與我們一起參加電話會議的是首席執行官 Andrew Rees；和執行副總裁兼首席財務官 Anne Mehlman。在他們準備好的評論之後，我們將打開您的問題的電話。這個時候，我會把電話轉給安德魯。

Thank you, Cori, and good morning, everyone. We're very pleased today to announce that we had an exceptional first quarter despite a number of headwinds. Revenues grew by 47% on a constant currency basis, adjusted operating margins were extremely strong at 27% of sales, and we generated $2.05 of adjusted diluted EPS. Within our overall company results, the Crocs brand performed very strongly across all regions and channels. While we have only owned HEYDUDE for 6 weeks during the quarter, we are rapidly assimilating it into the company and it's very clear that demand for the brand is exceptional, and we're confident in a robust growth runway.

謝謝你，Cori，大家早上好。我們今天很高興地宣布，儘管有許多不利因素，我們第一季度的表現非常出色。按固定匯率計算，收入增長了 47%，調整後的營業利潤率非常強勁，佔銷售額的 27%，調整後的攤薄每股收益為 2.05 美元。在我們的整體公司業績中，Crocs 品牌在所有地區和渠道的表現都非常強勁。雖然我們在本季度只擁有 HEYDUDE 6 週，但我們正在迅速將其吸收到公司中，很明顯對該品牌的需求是異常的，我們對強勁的增長跑道充滿信心。

Anne will review our financial results in more detail shortly, but here are a few highlights from the first quarter of 2022. Overall, consolidated revenue growth, including both Crocs and HEYDUDE was 47% on a constant currency basis. On a constant currency basis, Crocs brand grew 22% and including strong DTC growth of 20% and digital growth of 23%. HEYDUDE revenue exceeded our expectations at $115 million since February 17. On a pro forma basis, Q1 revenues were $205 million, up 81%. The HEYDUDE integration is proceeding well and is on track. Adjusted operating margins on a consolidated basis, including Crocs and HEYDUDE, was best-in-class to 27%. Adjusted diluted EPS was an exceptional $2.05 per share. Both brands ranked in the top 10 of Piper Sandler spring taking stock with teen survey with Crocs at #6 preferred footwear brand, up from #8 last spring and HEYDUDE as the #9 preferred footwear brand.

Anne 將在不久後更詳細地審查我們的財務業績，但這裡有一些 2022 年第一季度的亮點。總體而言，包括 Crocs 和 HEYDUDE 在內的綜合收入增長為 47%（按固定匯率計算）。按固定匯率計算，Crocs 品牌增長 22%，其中包括 20% 的強勁 DTC 增長和 23% 的數字增長。自 2 月 17 日以來，HEYDUDE 的收入超過了我們的預期，達到了 1.15 億美元。在備考基礎上，第一季度的收入為 2.05 億美元，增長了 81%。 HEYDUDE 的整合進展順利，並已步入正軌。包括 Crocs 和 HEYDUDE 在內的綜合調整後營業利潤率達到 27%，是同類產品中的佼佼者。調整後的稀釋後每股收益為每股 2.05 美元。這兩個品牌都在 Piper Sandler 春季盤點的前 10 名中，Crocs 排名第 6 的首選鞋履品牌，高於去年春季的第 8 名，HEYDUDE 排名第 9 的首選鞋履品牌。

Finally, we released our 2021 ESG report, reiterating our bold commitment to become a net zero company by 2030. Moving to our brand highlights for the quarter. Let's begin with the Crocs brand. We experienced a strong Q1 with constant currency growth of 22%. Our strong DTC growth evidences the continued demand consumers have for the brand. Another indicator of the Crocs -- of Crocs demand is that it jumped up 2 spots in the Piper Sandler Spring Teen Survey to become the #6 preferred footwear brand amongst teens.

最後，我們發布了 2021 年 ESG 報告，重申了我們到 2030 年成為淨零公司的大膽承諾。轉向我們本季度的品牌亮點。讓我們從 Crocs 品牌開始。我們經歷了強勁的第一季度，貨幣增長率為 22%。我們強勁的 DTC 增長證明了消費者對該品牌的持續需求。 Crocs 的另一個指標——Crocs 的需求量是它在 Piper Sandler 春季青少年調查中上升了 2 位，成為青少年中排名第六的首選鞋履品牌。

We continue to drive Crocs brand relevance and consideration through many activations. We made waves at the Grammys when Justin Bieber wore a hard Crocs sandal created in collaboration with luxury fashion house, Balenciaga; and Questlove wore a Pollex clog from a partnership with renowned footwear designer Salehe Bembury. In China, we introduced fashion and entertainment icon, Nana, as China's newest Crocs ambassador, leveraging her creativity and ingenuity.

我們通過許多活動繼續推動 Crocs 品牌相關性和考慮。當 Justin Bieber 穿著與奢侈時裝公司 Balenciaga 合作設計的硬質 Crocs 涼鞋時，我們在格萊美頒獎典禮上掀起了波瀾； Questlove 穿著與著名鞋履設計師 Salehe Bembury 合作的 Pollex 木屐。在中國，我們介紹了時尚和娛樂偶像 Nana 作為中國最新的 Crocs 大使，充分利用了她的創造力和獨創性。

We continue to run many innovative digital marketing campaigns. For our Karol G collaboration, we curated a custom playlist with Spotify and the popular playlist, Viva Latino, which helped drive 1.4 million visits to the Crocs website during the campaign. The Karol G Instagram announcement also became the second most light post in Crocs social history. To drive sandal consideration amongst athletes, we teamed up with SLAM magazine to develop a content series highlighting how 4 global basketball stars incorporate Crocs into their off-court looks. We experienced additional basketball theme success was Crocs ranked in the top 5 most popular brands in the NBA 2K video game series.

我們繼續開展許多創新的數字營銷活動。對於我們與 Karol G 的合作，我們與 Spotify 和流行的播放列表 Viva Latino 一起策劃了一個自定義播放列表，該播放列表在活動期間幫助推動了 Crocs 網站的 140 萬次訪問。 Karol G Instagram 公告也成為 Crocs 社會歷史上第二輕的帖子。為了提高運動員對涼鞋的考慮，我們與 SLAM 雜誌合作開發了一個內容系列，重點介紹 4 位全球籃球明星如何將 Crocs 融入他們的場外造型。我們經歷了額外的籃球主題成功，Crocs 在 NBA 2K 視頻遊戲系列中排名前 5 位最受歡迎的品牌。

Our Valentine's Day collaboration with Sweethearts Candy to create the classic sweetheart fur clog drove 200,000 unique visitors to our site, and the novelty Crocs were a topic of conversation on the Late Late Show between host James Gordon and guest Nicki Minaj. Our new Cozy 2-strap line panel debuted in a digital first launch on the Crocs app. And finally, we had a very promising start to our newly launched LiteRide 360 franchise that features enhanced breathability and comfort as well as a higher price point than our original LiteRide franchise.

我們在情人節與 Sweethearts Candy 合作打造經典的甜心毛皮木屐，為我們的網站帶來了 200,000 名獨立訪問者，而新穎的 Crocs 成為主持人 James Gordon 和嘉賓 Nicki Minaj 之間的深夜秀的話題。我們新的 Cozy 2-strap line 面板在 Crocs 應用程序的數字首次發布中首次亮相。最後，我們新推出的 LiteRide 360 特許經營權有了一個非常有希望的開端，該特許經營權具有增強的透氣性和舒適性，並且價格比我們最初的 LiteRide 特許經營權更高。

From a channel perspective, we achieved strong growth in both DTC and wholesale, as revenues benefited from higher pricing, favorable product mix and lower promotional levels as compared to last year. Crocs brand DTC revenues, which includes revenues from e-commerce and company-owned retail stores, grew by 20% on a constant currency basis over 2021. Wholesale, which includes brick-and-mortar, e-tail and distributors, grew revenues 23% on a constant currency basis. Our digital business experienced another strong quarter with 23% growth on a constant currency basis.

從渠道的角度來看，我們在 DTC 和批發方面都實現了強勁增長，因為與去年相比，收入受益於更高的定價、有利的產品組合和更低的促銷水平。 Crocs 品牌 DTC 收入（包括電子商務和公司自有零售店的收入）在 2021 年按固定匯率計算增長了 20%。包括實體店、電子零售和分銷商在內的批發收入增長了 23 % 在固定貨幣基礎上。我們的數字業務又經歷了一個強勁的季度，按固定匯率計算增長了 23%。

Turning to HEYDUDE. We closed the acquisition on February 17 and are even more excited about the opportunities ahead of us. HEYDUDE brand revenues exceeded our expectations, contributing $115 million to the first quarter or $205 million on a pro forma basis. Demand was incredible, both in wholesale and digital, fueling 81% pro forma growth for the quarter.

轉向 HEYDUDE。我們於 2 月 17 日完成了收購，對我們面前的機會更加興奮。 HEYDUDE 品牌收入超出了我們的預期，為第一季度貢獻了 1.15 億美元，或在備考基礎上貢獻了 2.05 億美元。批發和數字方面的需求令人難以置信，推動了本季度 81% 的備考增長。

Underlying momentum is exceptional for HEYDUDE. The brand ranked ninth in the Piper Sandler Spring 2022 survey, cracking the top 10 for the second consecutive survey, and remains particularly strong in the Midwest and South. To drive future growth, we're focused on building out the brand platform for HEYDUDE. You will begin to see some of this work in the marketplace later this year.

HEYDUDE 的潛在動力非常出色。該品牌在 Piper Sandler 2022 年春季調查中排名第九，連續第二次進入前 10 名，並且在中西部和南部地區仍然特別強勁。為了推動未來的增長，我們專注於為 HEYDUDE 打造品牌平台。今年晚些時候，您將開始在市場上看到其中的一些作品。

By investing in talent, marketing and digital, we look forward to taking this highly successful brand that consumers love and growing into a $1 billion-plus brand across the U.S. and high potential international markets. From an integration standpoint, it's early days, but everything is progressing to plan. As we mentioned, during our fourth quarter conference call, we've hired many of the key leadership positions. We're integrating the shared service functions, including HR, finance, legal and supply chain, with the integration on track and results already exceeding expectations. We look forward to continued success of this high-growth, highly profitable brand.

通過在人才、營銷和數字方面的投資，我們期待著將這個深受消費者喜愛的非常成功的品牌發展成一個在美國和高潛力國際市場上價值超過 10 億美元的品牌。從集成的角度來看，現在還處於早期階段，但一切都在按計劃進行。正如我們所提到的，在我們的第四季度電話會議中，我們聘請了許多關鍵的領導職位。我們正在整合共享服務功能，包括人力資源、財務、法律和供應鏈，整合進展順利，結果已經超出預期。我們期待這個高增長、高利潤的品牌繼續取得成功。

Another notable achievement is that we published the Crocs brand ESG report, reflecting important progress and our commitment to becoming more sustainable and equitable company. Over time, this report will evolve to capture both brands and continue to be guided by the SASB and UN Sustainable Development Goals. As a brand that is proud to invite everyone to be comfortable in their own shoes, the report demonstrates how we've applied our commerce to our values into an actionable 3-pillar approach to ESG: comfort without carbon, comfort for our communities and comfort for all people. We're excited about the transparency of our sustainability efforts, especially around sustainable innovation and renewable energy, and this report reinforces our bulk commitment to become a net zero company by 2030.

另一個顯著成就是我們發布了 Crocs 品牌 ESG 報告，反映了重要進展以及我們致力於成為更加可持續和公平的公司。隨著時間的推移，本報告將不斷發展以涵蓋這兩個品牌，並繼續以 SASB 和聯合國可持續發展目標為指導。作為一個自豪地邀請每個人穿著自己的鞋子感到舒適的品牌，該報告展示了我們如何將我們的商業應用到我們的價值觀中，形成可操作的 ESG 3 支柱方法：無碳舒適、社區舒適和舒適為所有人。我們對可持續發展工作的透明度感到興奮，特別是在可持續創新和可再生能源方面，這份報告強化了我們到 2030 年成為淨零公司的承諾。

Now let me turn to the future. As we discussed on our first quarter call, the macro environment remains challenging. The backdrop of high inflation, rising interest rates and supply chain disruptions has only become more complicated with the war in Ukraine and the ongoing shutdowns caused by the Zero COVID policy in China. The impact of all these factors on consumer confidence remains uncertain. However, we have tremendous confidence and clear evidence to the underlying strength and growth potential of both the Crocs and HEYDUDE brands.

現在讓我轉向未來。正如我們在第一季度電話會議上所討論的，宏觀環境仍然充滿挑戰。高通脹、利率上升和供應鏈中斷的背景隨著烏克蘭戰爭和中國零疫情政策導致的持續停工變得更加複雜。所有這些因素對消費者信心的影響仍然不確定。然而，我們對 Crocs 和 HEYDUDE 品牌的潛在實力和增長潛力有極大的信心和明確的證據。

We look forward to continue to execute on the long-term vision for both brands and are extremely confident about our ability to grow the Crocs brand to $5 billion in revenues by 2026, and HEYDUDE brand to $1 billion of revenue by 2024. With that, Anne will now review our financial results in more detail.

我們期待繼續執行這兩個品牌的長期願景，並對我們到 2026 年將 Crocs 品牌的收入增長到 50 億美元、到 2024 年將 HEYDUDE 品牌的收入增長到 10 億美元的能力充滿信心。有了這個，安妮現在將更詳細地審查我們的財務業績。

Thank you, Andrew, and good morning, everyone. I'll begin with a short recap of our first quarter results. For a reconciliation of the non-GAAP amounts mentioned to their equivalent GAAP amounts, please refer to our press release. As you've already seen from our press release, we had an excellent first quarter. We delivered strong and consistent revenue growth within the Crocs brand across all regions and channels, and HEYDUDE revenues exceeded expectations.

謝謝你，安德魯，大家早上好。我將首先簡要回顧一下我們的第一季度業績。有關提到的非公認會計原則金額與其等值公認會計原則金額的對賬，請參閱我們的新聞稿。正如您已經從我們的新聞稿中看到的那樣，我們的第一季度表現出色。我們在所有地區和渠道的 Crocs 品牌內實現了強勁且持續的收入增長，HEYDUDE 的收入超出了預期。

Gross margins remained very strong despite freight headwinds and leverage in adjusted SG&A led to another quarter of best-in-class adjusted operating margin and adjusted earnings per share. With the HEYDUDE acquisition now closed, our reportable operating segments for the Crocs brand are North America, Asia Pacific, Europe, Middle East, Africa and Latin America. Latin America has moved from the previous Americas segment to the newly formed EMEALA segment, and we've added a segment that is now the HEYDUDE brand.

儘管貨運逆風和調整後的 SG&A 的槓桿作用導致另一個季度的同類最佳調整後營業利潤率和調整後每股收益，毛利率仍然非常強勁。隨著對 HEYDUDE 的收購現已結束，我們可報告的 Crocs 品牌運營部門是北美、亞太地區、歐洲、中東、非洲和拉丁美洲。拉丁美洲已從以前的美洲市場轉移到新成立的 EMEALA 市場，我們增加了一個市場，現在是 HEYDUDE 品牌。

First quarter consolidated revenues were $660 million, a growth rate of 43.5% over last year, comprised of $545 million from the Crocs brand or 18.5% growth and $115 million from the HEYDUDE brand following the acquisition closed on February 17. Crocs achieved 18.5% growth despite losing revenues from Russia in the latter half of the quarter, and unfavorable currency movement in the quarter. During the first quarter for the Crocs brand, we sold 20.6 million pairs of shoes, which slightly declined by 1.1% over last year. The Crocs brand average selling price during Q1 was $21.10, a year-over-year increase of 19.6%, driven by price increases, reduced promotions and discounting and incremental jibbitz penetration.

第一季度合併收入為 6.6 億美元，比去年增長 43.5%，其中包括 Crocs 品牌的 5.45 億美元或 18.5% 的增長和 HEYDUDE 品牌的 1.15 億美元，收購於 2 月 17 日結束。Crocs 實現了 18.5% 的增長儘管在本季度後半段失去了來自俄羅斯的收入，並且本季度貨幣走勢不利。 Crocs 品牌第一季度售出 2060 萬雙鞋，比去年略有下降 1.1%。第一季度 Crocs 品牌的平均售價為 21.10 美元，同比增長 19.6%，主要受價格上漲、促銷和折扣減少以及 jibbitz 滲透率增加的推動。

Let's review a few Crocs brand highlights by region. Beginning with North America, where Q1 revenues increased 19.5% to $319 million to prior year, driven by higher prices and strong sell-throughs. DTC revenues increased 18.5% on top of an exceptional 131.3% growth last year and clearly signals the strength of the Crocs brand in North America.

讓我們按地區回顧一些 Crocs 品牌亮點。從北美開始，在價格上漲和強勁銷售的推動下，第一季度收入比上年增長 19.5% 至 3.19 億美元。 DTC 收入在去年增長 131.3% 的基礎上增長了 18.5%，清楚地表明 Crocs 品牌在北美的實力。

The Crocs brand in Asia generated revenues of $96 million or 22.1% growth on a constant currency basis, driven by higher pricing, less discounting and greater wholesale volume. South Korea, India and Singapore, all posted strong double-digit revenue growth versus last year. This momentum was slightly offset by softness in China and Japan, as COVID lockdowns and a conservative Japanese consumer remain headwinds. DTC revenue growth of 26% on a constant currency basis was strong, with growth accelerating from the period last year.

在更高的定價、更少的折扣和更大的批發量的推動下，Crocs 品牌在亞洲的收入為 9600 萬美元，按固定匯率計算增長 22.1%。與去年相比，韓國、印度和新加坡都實現了強勁的兩位數收入增長。這一勢頭被中國和日本的疲軟略微抵消，因為新冠疫情的封鎖和保守的日本消費者仍然是不利因素。按固定匯率計算，DTC 收入增長強勁，達到 26%，與去年同期相比增長加快。

Digital channels posted excellent double-digit growth led by India, South Korea and Australia. Crocs brand revenues for EMEALA, our new combined EMEA and Latin American regions, grew 26.8% on a constant currency basis to $130 million, even as we paused Russia operations. Double-digit DTC revenue increases were driven by higher e-commerce traffic and strong growth in core styles offset by inventory constraints.

數字渠道在印度、韓國和澳大利亞的帶動下實現了兩位數的出色增長。即使我們暫停了俄羅斯業務，Crocs 在 EMEALA（我們新合併的 EMEA 和拉丁美洲地區）的品牌收入按固定匯率計算增長了 26.8% 至 1.3 億美元。電子商務流量增加和核心款式的強勁增長被庫存限制所抵消，推動了兩位數的 DTC 收入增長。

Turning to HEYDUDE. Revenues exceeded our expectations, contributing $115 million since February 17. On a pro forma basis, Q1 revenues grew 81% to $205 million. With regards to margin, we will provide visibility into brand gross margin for the remainder of 2022 and will report on a consolidated basis only beginning next year. Consolidated adjusted gross margins for the first quarter were 53.9% versus last year's 55.2%. Importantly, adjusted gross margin for the Crocs brand was 54.9%, only 30 basis points lower than last year, even with 650 basis points of incremental freight and 50 basis points of unfavorable purchasing power as higher prices and fewer promotions almost entirely offset these significant headwinds. Adjusted gross margins at the consolidated level declined due to the addition of HEYDUDE during the quarter, which carried a lower gross margin.

轉向 HEYDUDE。收入超出了我們的預期，自 2 月 17 日以來貢獻了 1.15 億美元。在備考基礎上，第一季度收入增長 81% 至 2.05 億美元。關於利潤率，我們將在 2022 年剩餘時間內提供品牌毛利率的可見性，並將僅從明年開始進行合併報告。第一季度綜合調整後毛利率為 53.9%，而去年為 55.2%。重要的是，Crocs 品牌的調整後毛利率為 54.9%，僅比去年低 30 個基點，即使運費增加了 650 個基點，購買力下降了 50 個基點，因為更高的價格和更少的促銷活動幾乎完全抵消了這些重大不利因素.由於本季度增加了 HEYDUDE，綜合水平的調整後毛利率下降，其毛利率較低。

Adjusted gross margin excludes a $28 million inventory write-up in connection with the HEYDUDE acquisition and a $2 million inventory reserve due to the pause of Russia operations. During the first quarter of 2022, consolidated SG&A improved 60 basis points to 27.3% of revenues versus 27.9% in last year's first quarter. The decrease in adjusted SG&A rate was achieved while investing an additional $52 million versus prior year, primarily in marketing and talent. We will continue to invest to support the long-term growth of our business, particularly in HEYDUDE, where we have noted significant investment is required in infrastructure, marketing and talent.

調整後的毛利率不包括與收購 HEYDUDE 相關的 2800 萬美元庫存增記以及由於俄羅斯業務暫停而產生的 200 萬美元庫存儲備。 2022 年第一季度，綜合 SG&A 佔收入的比例從去年第一季度的 27.9% 提高了 60 個基點，達到 27.3%。調整後的 SG&A 率下降是在與去年相比額外投資 5200 萬美元的同時實現的，主要用於營銷和人才。我們將繼續投資以支持我們業務的長期增長，特別是在 HEYDUDE，我們注意到在基礎設施、營銷和人才方面需要大量投資。

Nonrecurring SG&A expenses for the first quarter included $21 million related to the HEYDUDE acquisition. Crocs nonrecurring expenses included $5 million of bad debt related to the pause of our Russia operations. Our first quarter consolidated adjusted operating income of $175 million increased 39.6% from $126 million last year, including $16 million attributable to HEYDUDE. Adjusted operating margin declined to 26.6% from 27.3% last year as SG&A leverage only partially offset the gross margin headwinds of incremental freight and the addition of the HEYDUDE brand.

第一季度的非經常性 SG&A 費用包括與 HEYDUDE 收購相關的 2100 萬美元。 Crocs 的非經常性費用包括與俄羅斯業務暫停有關的 500 萬美元壞賬。我們第一季度的合併調整後營業收入為 1.75 億美元，比去年的 1.26 億美元增長了 39.6%，其中包括歸屬於 HEYDUDE 的 1600 萬美元。調整後的營業利潤率從去年的 27.3% 下降至 26.6%，因為 SG&A 槓桿僅部分抵消了增加貨運和增加 HEYDUDE 品牌的毛利率逆風。

For the first quarter, our non-GAAP tax rate was 19.8% versus 19.5% last year. Our first quarter non-GAAP diluted earnings per share increased 37.6% to $2.05 from $1.49 last year. Our liquidity position remains strong as we ended the first quarter with $172 million of cash and cash equivalents and $365 million (sic) [$371.1 million] of borrowing capacity on our upsized revolver.

第一季度，我們的非公認會計原則稅率為 19.8%，而去年為 19.5%。我們第一季度非公認會計原則攤薄後每股收益從去年的 1.49 美元增長 37.6% 至 2.05 美元。我們的流動性狀況保持強勁，因為我們在第一季度結束時擁有 1.72 億美元的現金和現金等價物，以及我們擴大後的左輪手槍的 3.65 億美元（原文如此）[3.711 億美元] 的借貸能力。

Our net borrowing at the end of Q1 were $2.9 billion after issuing a $2 billion term loan B and borrowing $235 million on our revolver. Our inventory balance at March 31, 2022, was $408 million. This includes the addition of $92 million of HEYDUDE inventory and another $28 million of inventory step-up related to the acquisition of HEYDUDE. We continue to experience significant in-transit inventory increases as a result of elevated in-transit times.

在發行了 20 億美元的定期貸款 B 並在我們的左輪手槍上借了 2.35 億美元之後，我們在第一季度末的淨借款為 29 億美元。我們在 2022 年 3 月 31 日的庫存餘額為 4.08 億美元。這包括增加 9200 萬美元的 HEYDUDE 庫存和另外 2800 萬美元與收購 HEYDUDE 相關的庫存增加。由於在途時間延長，我們繼續經歷顯著的在途庫存增加。

In-stock levels on core product have improved, particularly in the U.S., partially as a result of the investments we are making in airfreight.

核心產品的庫存水平有所提高，尤其是在美國，部分原因是我們在空運方面的投資。

Turning to the future. I would like to share our current outlook for 2022 and Q2. All numbers will be on a reported basis, unless otherwise stated. For full year 2022, we are raising our consolidated revenue guidance to approximately $3.5 billion from approximately $3.4 billion, representing year-over-year growth of 52% to 55%. We still expect Crocs brand revenue growth of over 20%. Following an outstanding first quarter for HEYDUDE, we are raising our expectations for the full year and now expect HEYDUDE revenues to be between $750 million to $800 million on a reported basis, implying $840 million to $890 million on a pro forma basis.

轉向未來。我想分享我們目前對 2022 年和第二季度的展望。除非另有說明，否則所有數字都將在報告的基礎上進行。對於 2022 年全年，我們將合併收入指引從約 34 億美元提高至約 35 億美元，同比增長 52% 至 55%。我們仍然預計 Crocs 品牌收入增長超過 20%。在 HEYDUDE 第一季度表現出色之後，我們提高了對全年的預期，現在預計 HEYDUDE 的收入在報告的基礎上將在 7.5 億美元至 8 億美元之間，這意味著在備考基礎上為 8.4 億美元至 8.9 億美元。

We are also raising our adjusted operating margin range to be approximately 26% to 27%. As a result of outstanding anticipated growth and best-in-class margins for 2022, we are raising our non-GAAP diluted earnings per share expectations to be approximately between $10.05 to $10.65. For Q2 2022, we expect consolidated revenues to be between $918 million and $957 million, representing 43% to 49% growth from prior year. We expect Crocs brand revenues to grow approximately 17% to 20% growth in constant currency, which is 12% to 15% at current currency rates.

我們還將調整後的營業利潤率範圍提高到大約 26% 至 27%。由於 2022 年出色的預期增長和一流的利潤率，我們將非公認會計原則攤薄後每股收益預期提高至約 10.05 美元至 10.65 美元之間。對於 2022 年第二季度，我們預計合併收入將在 9.18 億美元至 9.57 億美元之間，比上年增長 43% 至 49%。我們預計 Crocs 品牌收入按固定匯率計算將增長約 17% 至 20%，按當前匯率計算為 12% 至 15%。

Excluding currency and the pause of Russia, Crocs brand growth would be approximately 20% to 23%, which is above full year guidance. We expect HEYDUDE revenues to be approximately $200 million to $220 million. Even with significant investment expected in air freight and SG&A to support growth, we expect adjusted operating margin to be approximately 26%. Given our strong revenue and cash flow projections for the year, we now expect to be below 2x gross leverage by midyear next year, which would allow us to repurchase shares should we choose to do so.

剔除匯率和俄羅斯的停頓，Crocs 品牌增長將在 20% 到 23% 左右，高於全年預期。我們預計 HEYDUDE 的收入約為 2 億至 2.2 億美元。即使預計對空運和 SG&A 進行大量投資以支持增長，我們預計調整後的營業利潤率約為 26%。鑑於我們今年強勁的收入和現金流預測，我們現在預計到明年年中總槓桿率將低於 2 倍，這將使我們能夠在我們選擇這樣做時回購股票。

In summary, in spite of the challenging global operating environment, the Crocs brand and our fundamentals are incredibly strong, and the HEYDUDE brand is already accretive to growth and profitability. At this time, I'll turn the call back over to Andrew for his final thoughts.

總而言之，儘管全球經營環境充滿挑戰，但 Crocs 品牌和我們的基本面都非常強勁，HEYDUDE 品牌已經在增長和盈利。此時，我會將電話轉回給 Andrew，以徵求他的最終想法。

Thank you, Anne. As our Q1 performance indicated, we have great momentum in both of our brands. Our Crocs brand continues to grow in all regions and channels. The HEYDUDE brand has already exceeded expectations, and we're excited to unlock the full potential of this exciting young brand. We remain focused on achieving the long-range targets we've laid out for both brands and the significant shareholder value this will create. Operator, please open the call for questions.

謝謝你，安妮。正如我們第一季度的表現所表明的那樣，我們兩個品牌的發展勢頭都很好。我們的 Crocs 品牌在所有地區和渠道中持續增長。 HEYDUDE 品牌已經超出預期，我們很高興能夠釋放這個令人興奮的年輕品牌的全部潛力。我們仍然專注於實現我們為兩個品牌制定的長期目標以及這將創造的重要股東價值。接線員，請打開電話提問。

(Operator Instructions) Our first question comes from Jonathan Komp from Baird.

（操作員說明）我們的第一個問題來自 Baird 的 Jonathan Komp。

First question I want to ask, when you look at the performance of the business along with the Q2 guidance and then really it looks like an embedded second half acceleration. Could you maybe just comment a little bit more of what's supporting your outlook, especially in the second half and for the Crocs brand and the factors that you think will contribute to the acceleration in top line growth?

我想問的第一個問題是，當您查看業務表現以及第二季度的指導時，它看起來真的像是嵌入了下半年的加速。您能否就支持您的前景的因素多發表一些評論，特別是在下半年和 Crocs 品牌以及您認為將有助於加速收入增長的因素？

Yes. John, thank you for the question. So just to reiterate our guidance, we're very confident in our full year guidance, which is both the 20-plus percent in the Crocs brand and the upward revision of the HEYDUDE brand, which carries best-in-class operating margins for the combination. Our full year 20% guide to the Crocs brand and the $840 million to $890 million for the HEYDUDE brand is based on really the continued strong prebooks that we see for both brands, innovation pipeline, brand renaissance and just performance we're seeing overall globally.

是的。約翰，謝謝你的問題。因此，重申一下我們的指導，我們對全年指導非常有信心，即 Crocs 品牌的 20% 以上和 HEYDUDE 品牌的上調，該品牌的營業利潤率為組合。我們對 Crocs 品牌的全年 20% 指南以及 HEYDUDE 品牌的 8.4 億至 8.9 億美元是基於我們在全球範圍內看到的兩個品牌、創新渠道、品牌復興和公正表現的持續強勁的預售.

Then turning to Q2 specifically, our Crocs brand revenue guide of 17% to 20% constant currency translates to 12% to 15% on a reported basis. And then if you add back the pause in Russia, it would be at 20% to 23% growth, which is obviously above the 20% plus. So that sort of gives you the color on Q2. And we look forward to continuing to execute obviously, on our long term, which is the Crocs brand of $5 billion and the HEYDUDE brand to $1 billion, and then I'll let Andrew add a little extra color.

然後具體轉向第二季度，我們的 Crocs 品牌收入指南為 17% 至 20% 的固定貨幣，在報告的基礎上轉化為 12% 至 15%。然後，如果你把俄羅斯的停頓時間加起來，它將是 20% 到 23% 的增長，這顯然高於 20% 以上。所以那種給你第二季度的顏色。我們期待著繼續執行，從長遠來看，Crocs 品牌價值 50 億美元，HEYDUDE 品牌價值 10 億美元，然後我會讓 Andrew 添加一些額外的顏色。

Yes. I think -- look, I think you can come at it a couple of different ways, Jonathan. So we can look at our pre-books. We can look at the trajectory in our DTC businesses. And I think Anne referenced that. I think the other thing is we just look at the underlying strength of the brand. As we look at our brand metrics, if we look at some of the external brand metrics, the Crocs brand continues to perform very well. .

是的。我認為——聽著，我認為你可以通過幾種不同的方式來解決這個問題，喬納森。所以我們可以看看我們的預售書。我們可以看看我們 DTC 業務的發展軌跡。我認為安妮提到了這一點。我認為另一件事是我們只看品牌的潛在實力。當我們查看我們的品牌指標時，如果我們查看一些外部品牌指標，Crocs 品牌繼續表現良好。 .

There's clearly resonance for the brand, both here in the United States and in our key international markets. And we really see a strong trajectory. And I would say that is despite what we would kind of consider less than ideal NPI introductions in the first quarter. As we look at quarter 2 and quarter 3, we'll have a much stronger flow of NPI.

無論是在美國還是在我們的主要國際市場，這個品牌都有明顯的共鳴。我們真的看到了一個強大的軌跡。我想說的是，儘管我們認為第一季度引入的 NPI 不太理想。當我們查看第 2 季度和第 3 季度時，我們將擁有更強勁的 NPI 流量。

That's certainly factory closures late last year certainly impacted that. So we're pretty optimistic about the rest of the year. And then from a HEYDUDE perspective, we're really impressed by the consumer advocacy, the consumer takeaway and the enthusiasm which our wholesale accounts have for the brand the kind of results they're seeing on it in the current quarter. And obviously, that's translating into and how they're buying into the brand for the back half of the year and the conversations we're having with them about next year. So I think we see -- we're very fortunate. We see great underlying strength in both brands.

那當然是去年年底的工廠關閉肯定會影響到這一點。所以我們對今年剩下的時間非常樂觀。然後從 HEYDUDE 的角度來看，我們對消費者的擁護、消費者的外賣以及我們的批發客戶對該品牌的熱情印象深刻，他們在本季度看到了這種結果。顯然，這轉化為他們如何在下半年購買該品牌，以及我們與他們就明年進行的對話。所以我認為我們看到了——我們非常幸運。我們看到這兩個品牌都具有強大的潛在實力。

That's great. And if I could follow up on the HEYDUDE business. You've had it as part of the company for less than 90 days, yet you've raised the outlook pretty significantly for this year. So could you maybe just elaborate more what surprised you so far? How much visibility you have on supply for the upside to the guidance? And then maybe the broader picture, I know you've highlighted at least $1 billion by 2024? Are there scenarios where you could achieve that level much sooner?

那太棒了。如果我能跟進 HEYDUDE 的業務。你加入公司的時間還不到 90 天，但你已經大大提高了今年的前景。那麼，您能否詳細說明到目前為止讓您感到驚訝的事情？您對指導的上行供應有多少了解？然後可能是更廣泛的情況，我知道你已經強調到 2024 年至少 10 億美元？有沒有可以更快達到這個水平的場景？

Yes. And I think we talked a little bit about it for last call, Jonathan. As we due diligence the company and we brought it on, we knew they had a very strong revenue book, right? We knew we could see the trajectory in DTC, which the HEYDUDE is principally digital, both dot-com and Amazon, which is 3P. We had a great order book from our wholesale customers. We had strong visibility into supply but we had some questions. So I think that's probably the biggest thing that's changed. As we look at the last several weeks, obviously, the 6 weeks we reported in the first quarter and the period since then, we're working very well with the HEYDUDE team. And I think we have much more confidence in both inbound supply and logistics of getting that to our customers.

是的。我想我們在最後一次電話會議上談了一點，喬納森。當我們對公司進行盡職調查並帶來它時，我們知道他們的收入非常強勁，對吧？我們知道我們可以看到 DTC 的軌跡，HEYDUDE 主要是數字化的，包括 dot-com 和亞馬遜，即 3P。我們從批發客戶那裡收到了一份很棒的訂單。我們對供應有很強的了解，但我們有一些問題。所以我認為這可能是最大的改變。當我們回顧過去幾週時，很明顯，我們在第一季度報告的 6 週以及此後的這段時間，我們與 HEYDUDE 團隊合作得很好。而且我認為我們對將其提供給客戶的入站供應和物流更有信心。

So more ideal, I wouldn't say things are arriving on time. But we've got a lot more confidence around supply, which is really the principal reason for raising the '22 guidance for HEYDUDE. And look, we're very -- I don't really want to say any more at this stage about the ultimate potential for this brand. I think we have clear line of sight to the $1 billion that we talked about originally. And we've got a lot of work to do around integrating the brand into the company, building out the brand platform. We're doing a lot of really great work around that today. But we're very optimistic. We think this is a young brand with enormous potential.

更理想的是，我不會說事情會準時到達。但我們對供應更有信心，這確實是提高 HEYDUDE '22 指導的主要原因。看，我們非常 - 在這個階段我真的不想再說這個品牌的最終潛力。我認為我們對我們最初談到的 10 億美元有清晰的認識。我們在將品牌整合到公司、建立品牌平台方面還有很多工作要做。我們今天圍繞這個問題做了很多非常棒的工作。但我們非常樂觀。我們認為這是一個潛力巨大的年輕品牌。

The next question comes from Susan Anderson from B. Riley.

下一個問題來自 B. Riley 的 Susan Anderson。

Alec Legg on for Susan. Just to go back on HEYDUDE and the supply chain. I believe the product you mentioned was primarily made in China. Have you seen any challenges with the shutdowns there, either at the point of production or at the shipping centers?

亞歷克·萊格替補蘇珊。只是回到 HEYDUDE 和供應鏈。我相信你提到的產品主要是中國製造的。無論是在生產點還是在運輸中心，您有沒有看到那裡的停工帶來的任何挑戰？

Yes, you're right. HEYDUDE is predominantly made in China. We have seen some factory closures over the last couple of months within HEYDUDE. But in the grand scheme of things relative to our overall supply base and the production that we're expecting not material, and that is incorporated in our revised guidance. I think you also referenced shipping and logistics within that question. And that's been one of the nice benefits of integrating HEYDUDE into Crocs. We obviously have a far more robust logistics operation. So we're able to step in and really help manage the logistics. So I'd say all of those factors to date are incorporated in our guidance.

你是對的。 HEYDUDE 主要在中國製造。在過去的幾個月裡，我們在 HEYDUDE 看到了一些工廠關閉。但在相對於我們的整體供應基礎和我們預期不重要的生產的宏偉計劃中，這已包含在我們修訂後的指導中。我認為您在該問題中還提到了運輸和物流。這就是將 HEYDUDE 集成到 Crocs 的好處之一。我們顯然擁有更強大的物流運營。因此，我們能夠介入並真正幫助管理物流。所以我想說迄今為止所有這些因素都包含在我們的指導中。

Yes, I would just add that even though it's not an impact from a supply chain perspective. We do have an impact on the Crocs business based on the Shanghai shutdowns related to our e-commerce business that ships out of Shanghai. So that -- and that's incorporated into our Q2 guidance as well, but that has impacted our China business for Crocs for Q2.

是的，我只想補充一點，即使從供應鏈的角度來看這不是影響。基於與我們從上海發貨的電子商務業務相關的上海停工，我們確實對 Crocs 業務產生了影響。所以 - 這也納入了我們的第二季度指導，但這影響了我們第二季度 Crocs 的中國業務。

Okay. Perfect. And then just a follow-up on HEYDUDE, I believe last year, it was a record margin year. It was 40% plus. I guess what's the delta between that record year and that long-term expectation of 26% plus?

好的。完美的。然後只是對 HEYDUDE 的跟進，我相信去年，這是創紀錄的利潤年。這是40％以上。我猜那個創紀錄的年份和 26% 以上的長期預期之間的差值是多少？

Yes. So I think HEYDUDE obviously was a young brand and underinvested from an SG&A infrastructure perspective. They did a wonderful job of growing very, very quickly, and they hadn't scaled it back in infrastructure. So I believe last year, their EBITDA margins were approximately 38%. We filed pro forma a little bit later today. So you'll be able to see that laid out for the last 12 months.

是的。所以我認為 HEYDUDE 顯然是一個年輕的品牌，從 SG&A 基礎設施的角度來看投資不足。他們在非常非常快速地增長方面做得非常出色，而且他們沒有在基礎設施方面縮減規模。所以我相信去年，他們的 EBITDA 利潤率約為 38%。我們今天晚些時候提交了備考。因此，您將能夠看到過去 12 個月的情況。

But they -- we talked about when we bought the brand that we really needed to invest in the infrastructure. And so the difference there is our investment in SG&A in order and marketing because they haven't spent much in marketing at all. And so we intend to invest in marketing, in people and the infrastructure to build a stable brand going forward.

但是他們——我們在購買品牌時談到了我們真正需要投資於基礎設施的品牌。因此，不同之處在於我們在訂單和營銷方面的 SG&A 投資，因為他們根本沒有在營銷上花費太多。因此，我們打算投資於營銷、人員和基礎設施，以建立一個穩定的品牌。

(Operator Instructions) Our next question comes from Laura Champine from Loop.

（操作員說明）我們的下一個問題來自 Loop 的 Laura Champine。

Can you comment on how successful your efforts to drive pricing higher have been and what your assessment is of the promotional environment year-on-year as we move through spring?

您能否評論一下您為提高定價所做的努力取得了多大的成功，以及您對春季促銷環境的評估是什麼？

Yes. I think -- thank you, Laura. I think you can see that very clearly in our Q1 results. So if you look at the Q1 results, the underlying gross margin increases in the first quarter from pricing, from reduced promotions and also from enhanced Jibbitz sales was over 600 basis points. So I would say, very significant underlying margin increases from those factors. If you remember last year, we took price increases in DTC in April. They flow to our major wholesale customers later in the year.

是的。我想——謝謝你，勞拉。我認為您可以在我們的第一季度業績中非常清楚地看到這一點。因此，如果您查看第一季度的結果，第一季度的潛在毛利率因定價、促銷活動減少以及 Jibbitz 銷售增加而增加超過 600 個基點。所以我想說，這些因素帶來了非常顯著的潛在利潤率增長。如果您還記得去年，我們在 4 月份對 DTC 進行了價格上漲。它們會在今年晚些時候流向我們的主要批發客戶。

We took some additional pricing in some select international markets earlier this year. So I would say those price changes were in advance of what we anticipate to be inflationary cost increases. And they've positioned us extremely well. If we look at the promotional environment and we monitor closely the promotions that we are doing relative to last year and relative to competition, our promotional cadence in aggregate was less than last -- this time last year.

今年早些時候，我們在一些選定的國際市場採取了一些額外的定價。所以我會說這些價格變化是在我們預期的通脹成本增加之前發生的。他們為我們定位得非常好。如果我們查看促銷環境並密切關注我們相對於去年和相對於競爭的促銷活動，我們的促銷節奏總體上低於去年 - 去年這個時候。

And I think it's also generally competitive with competition. So I think we feel really good about the place that we are there. You can see an enhanced cadence of some promotional activity in the market. And we do feel like it's important to participate in key events around Easter or Memorial Day, or Fourth of July. So but we feel really good about the way the brand is positioned and the rate of sale we're seeing at the current prices.

而且我認為它通常也與競爭競爭。所以我認為我們對我們所在的地方感覺非常好。您可以看到市場上某些促銷活動的節奏加快。我們確實覺得參加複活節或陣亡將士紀念日或七月四日前後的重要活動很重要。因此，但我們對品牌的定位方式以及我們以當前價格看到的銷售率感覺非常好。

Yes. I would just add that our ASPs were up 20%. So as Andrew mentioned on the margins, but our ASPs were also up 20% in the quarter as well.

是的。我只想補充一點，我們的平均售價上漲了 20%。正如安德魯在邊際上提到的那樣，我們的平均售價在本季度也增長了 20%。

Got it. Got it. If I look at the Q2 guide for the Crocs brand, it seems like a top line deceleration from Q1. Is the way to think of that, that units are slowing because Q1, you saw improvements in supply chain, that let you ship what you wanted to ship? Or is it that promotions are increasing in Q2?

知道了。知道了。如果我查看 Crocs 品牌的 Q2 指南，這似乎是 Q1 的頂線減速。是否可以這樣想，單位正在放緩，因為第一季度，您看到供應鏈的改進，讓您可以運送您想要運送的東西？還是第二季度促銷活動增加了？

Yes. So the way that I would talk about Q2 is that we are -- actually last year Q2, we grew 93% year-over-year. So it's actually an extremely -- it's the highest growth rate we had last year. So it is a high growth quarter. And then if you neutralize for currency and the Russia impact, I would say that growth is still above our full year guide and equivalent to Q1. So we feel really good about Q2. I don't think that we see -- that doesn't anticipate slowing.

是的。所以我談論第二季度的方式是我們 - 實際上去年第二季度，我們同比增長了 93%。所以它實際上是一個非常 - 這是我們去年的最高增長率。所以這是一個高增長的季度。然後，如果你對貨幣和俄羅斯的影響進行中和，我會說增長仍然高於我們的全年指導，相當於第一季度。所以我們對第二季度感覺非常好。我認為我們沒有看到 - 預計不會放緩。

(Operator Instructions) There are no more questions in the queue. This concludes our question-and-answer session. I'd like to turn the conference back over to Andrew Rees for any closing remarks.

（操作員說明）隊列中沒有更多問題。我們的問答環節到此結束。我想把會議轉回給 Andrew Rees 做任何閉幕詞。

Look, I'd just like to say thank you very much for everybody who joined us today and their continued interest in the company, and thank you for joining. Have a great day.

聽著，我只想對今天加入我們的每個人以及他們對公司的持續興趣表示非常感謝，並感謝您的加入。祝你有美好的一天。

Conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。