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Crocs’ stock soared on Monday after the retailer raised its forecast for the fourth quarter, and said it expects sales in 2021 to accelerate by up to 25%, taking advantage of the brand’s momentum during the holiday.
The retailer’s shares rose nearly 11% in the pre-market.
The shoe maker, before a presentation at the annual ICR conference, said it is now asking for fourth quarter sales to increase by about 55% year on year, totaling between $ 407 million and $ 410 million. This is above your previous perspective of a 20% to 30% jump.
Crocs said it expects sales for the full year 2020 to grow by more than 12%, to a record of about $ 1.38 billion, compared to a previous growth variation of 5% to 7%. In 2021, there is a 20% to 25% revenue growth.
“In the midst of a global pandemic in 2020, we will deliver the strongest revenue in the history of Crocs,” Chief Executive Andrew Rees said in a statement.
Crocs, once rejected by the fashion industry, has abandoned limited collaborations with celebrities ranging from Justin Bieber to Post Malone in recent years, increasing the influence of the rubber shoe globally. It expanded its footwear portfolio and even associated itself with renowned restaurant chains like KFC. The brand benefited especially during the Covid pandemic for being known for comfort.
Crocs’ shares have risen more than 53% in the past 12 months.
See the full Crocs release here.