Crocs Rises as Raised 4th-Period Sales Outlook Beats Estimates

Crocs shares traded higher Monday after the footwear company's revenue forecast beat analyst expectations.
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Crocs  (CROX) - Get Report shares jumped Monday after the footwear company raised guidance for the fourth quarter, which ended in December, and expects revenue growth to as much as double in 2021.

Shares of the Broomfield, Colo., company at last check rose 9.4% to $73.06. The stock on Monday touched a 52-week high of $72.87. That figure is more than eight times its 52-week low, $8.40, set in mid-March.

Crocs estimated that fourth-quarter revenue increased roughly 55% to a range of $407 million and $410 million, up from the previous guidance range of 20% to 30%, the company said. 

A survey of analysts at FactSet produced consensus estimates of GAAP earnings of 44 cents a share, or an adjusted 47 cents, on revenue of $329.8 million.

"Amidst a global pandemic in 2020, we will deliver the strongest revenue in Crocs's history," Chief Executive Andrew Rees said in a statement. 

"Our brand momentum is exceptional, and we anticipate another record year in 2021. We remain focused on continuing to deliver sustainable, profitable growth for years to come," he added.

Crocs estimated full-year 2020 revenue at $1.381 billion to $1.384 billion for 2020, an increase of more than 12% from a year earlier. The latest estimate compares with the 5% to 7% growth rate Crocs estimated previously.

For this year, Crocs has forecast revenue growth of 20% to 25% from 2020.

Crocs reported third quarter earnings of 91 cents a share on revenue of $361.7 million, compared with analyst estimates of earnings of 69 cents a share and revenue of $344.3 million. 

Third-quarter revenue rose 16% to $361.7 million from $312.8 million.

Digital sales in Q3 rose 36%. Digital sales accounted for 38% of revenue compared with 32% a year earlier. Retail comparable-store sales jumped 16.2%.