Shares of Crocs Inc. were up double digits in Monday premarket trading as the company raised its revenue guidance for 2020 and revealed a positive outlook for 2021.
Today, the casual shoe brand announced that it expects its fourth-quarter revenues to surge about 55% to between $407 million and $410 million — up from the previous guidance range of 20% to 30% growth. For the 2020 fiscal year, it anticipates revenue gains of more than 12%, which is also an improvement from its recent guidance of approximately 5% to 7% growth.
What’s more, Crocs predicted record revenues of between $1.381 billion and $1.384 billion for 2020. It added that it forecasts an accelerated full year 2021 revenue increase of 20% to 25%.
As of 8:30 a.m. ET, its stock jumped more than 11.5% to $74.50. (As of 12:45 p.m. ET, the shares remained in the green more than 12% to $74.99.)
“Amidst a global pandemic in 2020, we will deliver the strongest revenue in Crocs’ history,” CEO Andrew Rees said in a statement. “Our brand momentum is exceptional, and we anticipate another record year in 2021. We remain focused on continuing to deliver sustainable, profitable growth for years to come.”
The clog maker, which was named FN’s Brand of the Year at the 2020 FN Achievement Awards, has seen its stock climb more than 58% since the start of last year. Despite challenges brought about by the COVID-19 health crisis, Crocs has managed to solidify its brand strength — driven by a combination of trend-right products, buzzy collaborations and targeted marketing efforts.
Early into the outbreak, in March, leaders at the Niwot, Colo.-based firm began to implement their “defensive and offensive playbook” to help counter the predicted negative impact on its business. By the second quarter, those defensive measures had been completed, and its offensive action had “started to show results,” it said in late July.
In the third quarter, Crocs recorded adjusted earnings of 94 cents per share, while Wall Street had bet on earnings of 69 cents. Revenues rose 15.7% to $361.7 million, versus analysts’ forecasts of $339.6 million. In addition, its digital sales — including those made through company-owned websites, third-party marketplaces and e-tailers — advanced 35.5% for the three-month period.