Crocs Shares Step Forward After Results Beat Estimates
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.
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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.
