Some call Crocs the “shoe” of the pandemic, as the clog has become a staple item in the closet for consumers looking for comfort during their more casual pandemic lifestyle.
Popularity helped push Crocs to impressive sales gains in its final quarter, but investors, fearing the best was behind it, sold the shares on Tuesday. The stock closed down 3.8% to $ 80.01 on Tuesday, but more than doubled last year.
“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 told CNBC’s “Power Lunch”.
Rees said he remains optimistic that the brand can grow with the help of product innovations, such as the introduction of new sandals in its portfolio. He also noted that the footwear brand was already a trend even before the pandemic, putting them in a good position when Covid-19 arrived.
“Sandals is a major product category and the market for us around sandals is around $ 30 billion globally,” said Reese.
The growth of its shoe charms, or Jibbitz, has also contributed to the successful year the brand has had, doubling over the past year, with loyal Crocs fans customizing their shoes to make them unique.
The shoe also has a strong celebrity following and features Justin Bieber, Post Malone and Priyanka Chopra among its fans.
On Tuesday, Crocs said its fourth quarter fiscal net income rose to $ 183.3 million, or $ 2.69 per share, from $ 19.9 million, or 29 cents per share, a year before. Excluding items, Crocs earned $ 1.06 per share.
Revenue grew 56.5% to $ 411.5 million. Crocs said it expects revenue to grow 40% to 50% in the first quarter and between 20% to 25% for the entire year.