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Crocs beat on the top and bottom lines Thursday, raising its full-year revenue guidance amid strong global demand despite supply chain disruptions caused by the Covid-19 pandemic.
The shoemaker’s stock jumped more than 9% on Thursday, at one point reaching a new 52-week high of $136.50.
Here’s how the company did for its second quarter ended June 30 compared with what analysts surveyed by Refinitiv were anticipating:
- Earnings per share: $2.23 adjusted vs. $1.60 expected
- Revenue: $640.8 million vs. $565.2 million expected
Crocs raised its full-year guidance and now expects its revenue to grow between 60% to 65% compared to 2020. Last quarter, the retailer raised its guidance for this year, expecting sales to grow 40% to 50%.
During its third-quarter, the shoemaker expects revenue growth between 60% and 70% compared to last year’s third-quarter revenues of $361.7 million.
Crocs sales have boomed during the pandemic as consumers seek more comfortable footwear. Its stock has grown more than 90% year-to-date.
However, CEO Andrew Rees expressed concern about the short-term impacts of Covid-19 on the shoemaker’s supply. He expects Covid will lead to temporary factory closures in Vietnam, the company’s most significant manufacturing location.
Rees told analysts during a Thursday morning conference call that “global logistics remain challenging and volatile” as the world emerges from the pandemic. However, Crocs remains “incredibly optimistic about our business,” he said, noting that the supply challenges were factored into the raised guidance.
During the second quarter, Croc’s net income grew to $319 million , or $4.93 per share, compared to $56.6 million, or 83 cents per share, from a year earlier.
Excluding one-time adjustments, the company earned $2.23 a share, beating the $1.60 that analysts surveyed by Refinitiv were anticipating.
Revenues in the second quarter grew 93% to $640.8 million, from $331.5 million a year earlier. The company’s digital sales grew 25.4% to represent 36.4% of revenue, compared to 56.1% a year ago.
Croc’s sandals sales rose 57% during the second quarter after going up 17% in the first quarter, Rees said. The company also saw digital sales grow 99% compared to 2019, he added.
Crocs’ direct-to-consumer sales grew 78.6% compared to last year, and 86.4% compared to 2019, representing 52% of second-quarter revenues.
The company’s Americas’ revenue grew 135.3% during the second quarter.
Crocs had an 8% increase its in average selling price during this quarter to $21.84, according to CFO Anne Mehlman. The company attributed the increase to higher pricing and a favorable product mix.
Price hikes will be coming in the next year, most of which will be in markets outside of the U.S, the company’s leadership said.
Also on Thursday, Crocs committed to transition to net-zero emissions by 2030, an initiative that Rees called “comfort without carbon.”
“I believe we can deliver sustained, highly profitable growth while having a positive impact on our planet and our communities,” Rees said.
