Crocs Expects Record Revenue Growth. The Stock Dropped Anyway.

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Crocs said on Monday it was expecting record revenue growth in 2021, but an upbeat outlook on deteriorating market sentiment at retailers didn’t do enough to raise the price.

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The footwear brand is projecting revenue of $2.31 billion, compared to a reported $1.38 billion in 2020. This reflects a roughly 67% increase in revenue in 2021, which exceeds Wall Street’s consensus call of 65%.

Shares of Crocs (ticker: CROX) fell 2.47% to $122.6 at the close of Monday. S&P 500 fell 0.1%.

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While the data point is a positive, “we think the market is more likely to focus on the negative,” said UBS analyst Jay Soul, who has a neutral rating on the stock with a $175 price target. “Markets are concerned about retail slowdown and shrinking retailer’s margins over the next 6 months,” Soul said. baron’s,

He pointed to specialty retailers like lululemon athletica (ticker: LULU) and Bath & Body Works (BBWI), indicating macro factors are hurting sales in January. The athletic retailer expects fourth-quarter revenue to be at the low end of its $2.125 billion to $2.165 billion range, while Bath & Body expects earnings per share to be at the high end of its previous outlook of $2.10 to $2.25 , which is below. The road consensus of $2.27.

Most recently, Cros bought Heydude, an Italian casual footwear brand, last month. It makes lightweight and comfortable products like slip-ons for men, women, and kids, which cost around $60.

Revenue growth for Crocs, excluding sales from its recent acquisitions, is expected to exceed 20% this year compared to 2021.

“2021 proved to be an exceptional year for the Crocs brand,” said Crocs CEO Andrew Rees. “We are incredibly confident in the Crocs brand and continue to expect to achieve $5 billion in revenue by 2026, even before any Heydude revenue.”

Crocs was a baron’s Stock picks in September 2020.

The company’s announcement on Monday came ahead of this week’s ICR conference, one of the biggest investment conferences of the year. Crocs is due to give a presentation on Tuesday.

Write to Karishma Vanjani at [email protected]


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