Victor J. Blue | Bloomberg | Getty Images
Crocs shares soared on Monday after the retailer boosted its outlook for the fourth quarter, saying it expects sales to accelerate to 25% in 2021, building on the brand’s momentum during the holiday season.
The trader’s stock increased by almost 11% in trading on the market.
The shoe manufacturer said before a presentation at the annual ICR conference that it is now asking for sales to increase by about 55% year-on-year in the fourth quarter, between $ 407 million and $ 410 million. This is better than the outlook of 20% to 30%.
Crocs said it expects annual sales to grow by more than 12% in 2020 to a record $ 1.38 billion, compared to a previous range of 5% to 7%. In 2021, this calls for a revenue growth of 20% to 25%.
“Amid a global pandemic in 2020, we will generate the strongest revenue in the history of Crocs,” CEO Andrew Rees said in a statement.
Crocs, formerly avoided by the fashion industry, has dropped limited collaborations with celebrities over the past few years, ranging from Justin Bieber to Post Malone, who has raised the rubber shoe worldwide. It has expanded its shoe portfolio and even teamed up with big name restaurant chains like KFC. The brand has benefited from the fact that it is known for convenience, especially during the Covid pandemic.
Crocs shares have risen more than 53% over the past 12 months.
See the full release of Crocs here.