Crocs Inc. (CROX) stock jumps on strong Q3 results, revenue guidance

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Crocs Inc. (CROX) stock jumps on strong Q3 results, revenue guidance

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 Crocs Inc. (CROX) stock jumps on strong Q3 results, revenue guidance
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Highlights

  • Crocs’ revenue jumped 73.0% YoY to US$625.9 million, helped by strong sales growth, mainly in the Americas, followed by Asia Pacific, Europe, Middle East, and Africa.

  • The company’s online sales accounted for 36.8% of the total revenue, compared to 37.7% and 32.2% of revenues in 2020 and 2019, respectively, it said.

  • The operating income more than doubled to US$203.1 million YoY, while operating margin expanded to 32.4% from 19.9% in the previous year.

American footwear company Crocs, Inc. (CROX) stock jumped nearly 10% as it raised the full-year revenue guidance after reporting a 73% jump in third-quarter revenue on Thursday.

CROX stock was up 9.96% to US$149.475 at 2:07 pm ET following the quarterly results.

The company raised the FY 2021 revenue forecast to be between 62% and 65% compared to the total revenue of US$1,386.0 million in 2020.

For fiscal 2022, it expects revenue growth to exceed 20% from the 2021 figures.

CEO Andrew Rees said the continued strong global consumer demand and Crocs’ brand strength would bolster revenue growth in 2021 and 2022. He attributed the robust quarterly results to the Crocs teams’ superior management skills in the face of severe supply chain disruptions.

As a result of supply disruptions, Crocs had to force the closure of the Vietnam factory. But he added that swift action to shift production and improve factory output has helped deliver positive results.

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Third Quarter Highlights

Crocs’ revenue jumped 73.0% YoY to US$625.9 million, helped by strong sales growth, mainly in the Americas, followed by Asia Pacific, Europe, Middle East, and Africa.

The company’s online sales accounted for 36.8% of the total revenue, compared to 37.7% and 32.2% of revenues in 2020 and 2019, respectively, it said.

The operating income more than doubled to US$203.1 million YoY, while the operating margin expanded to 32.4% from 19.9% in the previous year.

Income from operations grew to US$203.1 million from US$72.1 million in the year-ago period. The operating margin increased to 32.4% from 19.9% in Q3 2020.

Crocs’ diluted earnings per share rose to US$2.42 from US$0.91 in the same period last year. The adjusted diluted earnings per share were US$2.47, up from $0.94.

The company said its total revenues from the Americas increased by 94.5% to US$455.9 million on a constant currency basis from the comparable period last year. Likewise, Asia Pacific revenues rose by 21.2% to US$83.6 million YoY.

The company’s cash and cash equivalents rose to US$436.6 million as of September 30, 2021, compared to US$135.8 million as of December 31, 2020.

Also Read: Blackstone (BX), Freeport (DCX) post record Q3 earnings as sales soar

Crocs’ revenue jumped 73.0% YoY to US$625.9 million, helped by strong sales growth, mainly in the Americas, followed by Asia Pacific, Europe, and Middle East.

Source: Pixabay

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Stock Performance

The stock jumped around 140% YTD. Its 52-week highest and lowest prices were US$163.18 and US$50.55, respectively. Its P/E ratio is 14.92, the forward P/E one year is 19.67, and the EPS is US$10.00. Crocs has a market capitalization of around US$91.9 billion.

Bottomline

The global retail sector has made significant strides since the covid lockdowns. The industry saw rapid growth in the past two quarters, especially in the North American markets, and some countries in Europe and Asia, buoyed by strong consumer demand. However, investors should evaluate the companies carefully before investing in stocks.

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