Crocs shares soar on raised sales outlook through 2021

Earnings

Victor J. Blue | Bloomberg | Getty Images

Crocs shares soared Monday after the retailer raised its outlook for the fourth quarter, and said it expects sales in 2021 to accelerate as much as 25%, building on the brand’s momentum during the holidays.

The retailer’s stock was up nearly 11% in premarket trading.

The shoe maker, ahead of a presentation at the annual ICR Conference, said it’s now calling for fourth-quarter sales to rise roughly 55% year over year, amounting to between $407 million and $410 million. That’s up from its prior outlook of a 20% to 30% jump.

Crocs said it expects 2020 full-year sales to grow more than 12% to a record of roughly $1.38 billion, up from a previous range calling for 5% to 7% growth. In 2021, it’s calling for revenue growth of 20% to 25%.

“Amidst a global pandemic in 2020, we will deliver the strongest revenue in Crocs’ history,” Chief Executive Andrew Rees said in a statement.

Crocs, once shunned by the fashion industry, has dropped limited collaborations with celebrities ranging from Justin Bieber to Post Malone in recent years, boosting the rubber shoe’s clout globally. It has expanded its footwear portfolio and even teamed up with big-name restaurant chains like KFC. The brand has especially benefitted during the Covid pandemic from being known for comfort.

Crocs shares have risen more than 53% over the past 12 months.

See the full release from Crocs here.

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