Crocs store in New York City.
Michael Brochstein | SOPA pictures | LightRocket | Getty Images
Crocs stock rose more than 8% on Tuesday after the shoe maker increased its full-year sales outlook and posted record sales in the first quarter.
CEO Andrew Rees said global demand for the Crocs brand is “stronger than ever”. Some have dubbed Crocs the “It” shoe of the pandemic as the clog has become a staple for consumers seeking home comfort. Thanks to popular collaborations and limited drops with celebrities like Justin Bieber, Post Malone and Priyanka Chopra, however, the momentum had already increased before that.
Here’s how the shoemaker developed for the quarter ended March 31st, compared to analysts’ expectations based on data from a refinitive survey:
- Earnings per share: $ 1.49 adjusted versus 89 cents expected
- Revenue: $ 460.1 million versus $ 415 million expected
Crocs’ net income rose to $ 98.4 million, or $ 1.47 per share, for the first quarter, compared to $ 11.1 million, or 16 cents per share, last year. Without one-off adjustments, the company earned $ 1.49 per share, well above the 89 cents expected by analysts, according to Refinitiv.
Revenue rose a whopping 64% from $ 281.2 million last year to $ 460.1 million. This exceeded Street’s expectations for $ 415 million.
According to Crocs, digital sales increased 75.3% to 32.3% of sales compared to 30.1% in the same period last year.
For the second quarter, Crocs is now asking for revenue growth between 60% and 70% year over year. According to Refinitiv, analysts were aiming for growth of 39.2%.
For the year, an increase in sales of between 40% and 50% is now expected. Revenue growth of 20% to 25% was planned for February. Analysts had called for an increase of 25%.
While Crocs said there is strong and sustained momentum in America, it sees the greatest long-term growth opportunity in Asia, the world’s second largest footwear market.
It continues to experiment with new designs that build on its classic clog, including the Crocs platform for women. The company told analysts and investors on Tuesday that it will launch more sandals in the future.
Crocs stock is up more than 260% in the past 12 months, making it one of the best-performing stocks in retail during the health crisis era. It has a market cap of $ 5.5 billion.
The full press release from Crocs can be found here.