Dina Rudick | Boston Globe | Getty Images
Crocodiles hit sales and earnings on Thursday and raised its full-year sales forecast in light of strong global demand despite supply chain disruptions caused by the Covid-19 pandemic.
The cobbler stock rose 9.96% on Thursday to close at $ 131.93. At one point the stock hit a new 52-week high of $ 136.50.
The company performed in the second quarter ended June 30, compared to the expectations of the analysts surveyed by Refinitiv:
- Earnings per share: $ 2.23 adjusted vs. $ 1.60 expected
- revenue: $ 640.8 million vs. $ 565.2 million expected
Crocs has raised its forecast for the year and now expects sales to grow by 60 to 65% compared to 2020. In the last quarter of the year, the retailer increased his leadership sales growth of 40 to 50% is expected for this year.
For the third quarter, the shoe manufacturer expects sales to grow between 60 and 70% compared to last year’s sales of 361.7 million US dollars.
Crocs sale have been booming during the pandemic as consumers are looking for more comfortable shoes. The share has grown by more than 90% since the beginning of the year.
However, CEO Andrew Rees expressed concern about the short-term impact of Covid-19 on the shoemaker’s care. He assumes that Covid will lead to temporary plant closings in Vietnam, the company’s main production location.
Rees told analysts during a conference call Thursday morning that “global logistics remain challenging and volatile” as the world emerges from the pandemic. However, Crocs remains optimistic about its business, he said, noting that the delivery challenges were reflected in the raised projections.
For the second quarter, Croc’s net income rose to $ 319 million, or $ 4.93 per share, compared to $ 56.6 million, or 83 cents per share, last year.
Without one-time adjustments, the company made $ 2.23 per share, beating the $ 1.60 that analysts surveyed by Refinitiv had expected.
Revenue increased 93% to $ 640.8 million for the second quarter compared to $ 331.5 million a year earlier. The company’s digital revenue increased 25.4% to 36.4% of revenue, compared to 56.1% last year.
Sales of Crocs sandals rose 57% in the second quarter after rising 17% in the first quarter, Rees said. The company also saw digital sales grow 99% compared to 2019, he added.
Crocs’ direct sales increased 78.6% year over year and 86.4% year over year, representing 52% of sales in the second quarter.
The company’s revenue in America increased 135.3% for the second quarter.
Crocs increased its average selling price 8% to $ 21.84 for the quarter, according to CFO Anne Mehlman. The company attributed the increase to higher prices and a favorable product mix.
There will be price increases in the next year, most of which will take place in markets outside of the United States, management said.
Also on Thursday, Crocs pledged to move to net zero emissions by 2030, an initiative Rees described as “carbon-free comfort.”
“I believe we can achieve sustainable, highly profitable growth while making a positive impact on our planet and our communities,” said Rees.