Crocs Focuses on Sandals for 2023 Following Record 2022

Continued demand for casual footwear led Crocs to a record 2022.

The shoemaker announced in a Thursday (Feb. 16) press release that it recorded $3.6 billion in revenue from its flagship brand and its Hey Dude line, with the company growing nearly 54% year over year.

“We anticipate another record year in 2023 with growth expected to be led by sandals and international for the Crocs Brand and increased U.S. market penetration for Hey Dude,” Andrew Rees, the company’s CEO, said in a news release.

Sandals will be important for the company this year, Rees added during an earnings presentation, thanks to crucial markets like India and Southeast Asia letting them tap into a $30 billion footwear category.

The company’s earnings presentation said its “sandal consideration is on par with that of clogs,” with sandal revenues in the neighborhood of $310 million in 2022.

Last year also marked Croc’s first full year of ownership for Hey Dude, which brought in revenues of $986 million. The company projects the brand’s revenues will grow 20% this year, in keeping with earlier predictions that Hey Dude would surpass $1 billion in 2023.

Much of the company’s planned capital expenditures for this year — $165 million to $180 million — will center around Hey Dude. Crocs is opening a new distribution center for the brand in Las Vegas and implementing new technology systems.

The 54% growth figure — 53.7% to be precise — was slightly higher than the 53% figure Crocs projected last month, which was itself above recent guidance of 49% to 52% growth.

As PYMNTS noted at the time, other brands have seen consumers move toward casual apparel, such as Foot Locker, which said in November that sneaker sales were rising because the products are fun and casual.

“We’re at the intersection of sports, fitness, fashion and the casualization of society, and the tailwinds for sneakers, I believe, will be persistent for many years to come,” said Foot Locker President and CEO Mary Dillon.

More recently, footwear and apparel brand Skechers marked four consecutive quarters of record sales and reached annual sales of $7.4 billion in 2022, achievements the company attributed in part to its comfortable shoes.

“Our four quarterly sales records in 2022 are the result of our focused marketing efforts, extensive distribution network and core design principles — style, comfort, innovation and quality, all at a reasonable price,” Skechers Chief Operating Officer David Weinberg said during an earnings call earlier this month.

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