Crocs store in New York City.
Michael Brochstein | SOPA pictures | LightRocket | Getty Images
Crocs stock rose more than 11% in the premarket on Tuesday after the shoemaker 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, the momentum had already increased before Covid.
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, beating the 89 cents surveyed by Refinitiv that analysts had expected.
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.
Direct sales from stores or websites to consumers increased 93.3% to $ 170.1 million. Wholesale sales increased 50.1% year over year to $ 290 million. During a conference call following the win, management said Crocs recently decided to cut ties with some of its wholesale partners in North America, although names were not disclosed in order to maintain control of its brand.
In total, the company has 349 company-operated stores, including 165 in the Americas.
“Looking ahead, we continue to focus on strategically important customers that include leading e-tailers, sporting goods, family shoes and specialty footwear retailers,” said Rees.
For the second quarter, Crocs is now asking for sales growth of 60% to 70% year over year. According to Refinitiv, analysts were aiming for growth of 39.2%.
For the year a sales increase of 40% to 50% is now expected. In February, the forecast for sales growth was 20% to 25%. 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 would launch more sandals. Sandal sales rose 17% in the first quarter, and the company announced that it will one day outgrow its core clogs.
Crocs stock rose more than 260% over the past 12 months, making it one of the best-performing stocks in retail during the health crisis. It has a market cap of $ 5.5 billion.
The full press release from Crocs can be found here.