Skip to main content

Crocs Shares Step Forward After Results Beat Estimates

Crocs shares rose after the footwear company reported results that were better than analysts expected.

Crocs  (CROX)  shares rose after the footwear company reported third-quarter results that were better than analysts expected.

The Broomfield, Colo., company's shares were up 1.8% to $53.16 at last check. It's trading around its 52-week high above $54, set a week ago. And it's up by a factor of six from its 52-week low of $8.40, set in mid-March.

For the quarter Crocs posted earnings of 91 cents a share, up 75% from 51 cents in the year-earlier quarter. Adjusted earnings were 94 cents, up from 57 cents.

Revenue rose 16% to $361.7 million from $312.8 million. 

A survey of analysts by FactSet produced consensus estimates of GAAP earnings of 69 cents a share, or an adjusted 70 cents, on revenue of $344.3 million.

Amid the covid-19 pandemic. cash flow was strong, Chief Executive Andrew Rees said in a statement.

Scroll to Continue

TheStreet Recommends

Gross-profit margin widened to 57.2% from 52.4%. 

Digital sales for Crocs rose 35.5%. Digital sales accounted for 37.7% of revenue compared with 32.2% a year earlier. Retail comparable-store sales jumped 16.2%. 

The company reported cash and cash equivalents of $123.6 million at Sept. 30 compared with $108.3 million at the end of 2019.

The shoe retailer didn't buy back any shares during the third quarter. It has $469 million authorized for share buybacks.

Looking ahead the company expects fourth-quarter revenue to grow between 20% and 30% from the year-earlier period excluding the potential impact of any covid-related shutdowns in a major market. This would translate to full-year 2020 revenue growth of 5% to 7%.

In May NDP Group found that Crocs was the only top footwear brand to enjoy rising sales in both March and April.