Some have called Crocs the “it” shoe of the pandemic, as clog became a staple food for consumers seeking comfort during their more casual lifestyle.
Popularity helped propel Crocs to impressive sales gains in its final quarter, but investors, fearing there was the best, sold the shares on Tuesday. Shares closed up 3.8% at $ 80.01 on Tuesday, but shares have more than doubled over the past year.
“The pandemic has allowed us to reach new customers, but I think consumers are also focusing on what we can offer them in the future,” Andrew Rees, CEO of Crocs, told CNBC’s “Power Lunch”.
Rees said he remains optimistic that the brand can grow with the help of product innovations, such as introducing new sandals to its portfolio. He also noted that the footwear brand was a trend even before the pandemic, placing them in a good position when the Covid-19 arrived.
“Sandals are a large product category and the affordable market for sandals is about $ 30 billion worldwide,” Reese said.
The growth of its shoe charms, or Jibbitz, also contributed to the brand’s successful year, doubling in the last year, as loyal Crocs fans customize 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 followers.
Earlier Tuesday, Crocs said its fourth-quarter net tax revenue rose to $ 183.3 million, or $ 2.69 per share, from $ 19.9 million, or 29 cents per share. a year earlier. Excluding items, Crocs earned $ 1.06 per share.
Revenue rose 56.5% to $ 411.5 million. Crocs said he expects revenue to increase from 40% to 50% in the first quarter and between 20% and 25% for the full year.