Crocs Inc.’s stock is popping at market open on Wednesday on the heels of a blockbuster earnings report and an upgrade in its guidance for the full year.
The clog maker logged adjusted earnings per share of 57 cents, versus consensus bets of 40 cents. Revenues also rose 19.8% to $312.8 million, compared with Wall Street’s expectations of $302.1 million. As of 9:30 a.m. ET, the company’s shares were up more than 10% to nearly $37.
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In a statement, president and CEO Andrew Rees said, “Our Americas business delivered exceptional growth, driven in part by another highly successful back-to-school season.”
During the quarter, the Niwot, Colo.-based firm’s comps climbed 12.5% despite store closures knocking roughly $4 million from the top line. Wholesale revenues increased 25.4%, while e-commerce sales grew 28.2%.
The impressive results led Crocs to increase its full-year guidance to 11% to 12% revenue growth over 2018, compared with the prior outlook of 9% to 11% — resulting in “record annual sales,” said Rees. “The Crocs brand momentum continues to gain pace, and for 2020 we anticipate revenue growth over 2019 of 12% to 14%.”
Over the past several years, Crocs has shuttered more than 150 stores; tapped buzzy A-listers such as Post Malone and Zooey Deschanel as ambassadors; and paired up with big-name brands, celebrities and retailers on high-profile collaborations. It has also concentrated its efforts around its Classic clog, benefiting from the broader shift toward more casual and comfortable footwear as well as the “ugly shoe” trend.
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