Some have referred to as Crocs the “it” shoe of the pandemic, because the clog became a closet staple for customers searching for consolation throughout their extra informal pandemic life-style.
The reputation helped push Crocs to gorgeous gross sales beneficial properties in its newest quarter, but buyers, fearing the very best was behind it, offered off the inventory on Tuesday. Shares closed down 3.8% at $80.01 on Tuesday, but the inventory has greater than doubled over the previous yr.
“The pandemic has allowed us to reach new customers, but I think consumers are also focused on what we can offer them in the future,” Crocs CEO Andrew Rees advised CNBC’s “Power Lunch.”
Rees mentioned he stays optimistic that the model can develop with the assistance of product improvements, reminiscent of introducing new sandals to its portfolio. He additionally famous that the footwear model was trending even earlier than the pandemic, placing them in a good place when Covid-19 hit.
“Sandals is a large product category and the accessible market for us around sandals is about $30 billion globally,” mentioned Reese.
The development of their shoe charms, or Jibbitz, additionally contributed to the profitable yr that the model had, doubling within the final yr, as loyal Crocs fans personalize their footwear to make them distinctive.
The shoe additionally has a sturdy superstar following, and counts Justin Bieber, Post Malone and Priyanka Chopra amongst its fans.
Earlier Tuesday, Crocs mentioned its fiscal fourth-quarter web revenue surged to $183.Three million, or $2.69 a share, from $19.9 million, or 29 cents a share, a yr earlier. Excluding gadgets, Crocs earned $1.06 a share.
Revenue rose 56.5% to $411.5 million. Crocs mentioned it expects income to rise 40% to 50% within the first quarter, and between 20% to 25% for the total yr.