Crocs: The unlikely "it" shoe of the pandemicCroc stocks are up over 15% following some blowout earnings...suggesting they might finally be back in style (were they ever in style?) Hey, they’re comfy, they’re cool, and no one can see your feet when you’re on Zoom anyway, right?
We can't believe it either, but apparently Crocs have become the “it” shoe of the pandemic, and the numbers are here to prove it. Despite the tough retail environment, solid demand for Croc products has driven growth across all channels and regions, and a cult-like following on TikTok has contributed to an impressive Q1. They even made it to the Oscars – Roots frontman and Academy Awards Musical Director QuestLove rocked a pair of gold-sprayed Croslite Crocs to the awards this year. Yup.
The plastic clog-maker reported earnings per share of $1.49 on revenue of $460.1 million, compared to expectations of 89 cents per share on revenue of $415 million. Revenues were up a whopping 64% from $281.2 million the same period last year, driven by some seriously impressive numbers - digital sales surged 75.3% and take the credit for over 30% of total revenue as customers turned to online shopping. Direct-to-consumer sales from its stores and website also doubled 93.3% to $170.1 million. Yeah, you heard.
Crocs sold 25.9 million pairs of shoes in Q1, a 50% increase from the same period last year, and sales of its traditional clogs increased 87%. Even Justin Bieber jumped on the trend (we’re not sure if that’s a good thing or not.)
Crocs CEO Andrew Rees said:
“We are thrilled with our first-quarter results. The strength of the Crocs brand is exceptional, experiencing growth across all regions and all channels. In the first quarter, our global brand momentum continued to strengthen, and we benefited from economy starting to emerge from the pandemic and government stimulus in some important markets. We continue to drive brand relevance and consideration through a multifaceted marketing approach that leverages digital and social marketing, celebrity and influencer campaigns and collaborations.”
Guidance wise, Crocs is calling for a sales increase of between 60-70% y-o-y, beating analyst expectations of 39% by miles. It’s expecting sales to jump by at least 50% over the full year, way up from the 20-25% it forecast in February.
Croc stocks have surged over 260% over the last 12 months, giving it a market cap of $5.5 billion and making it one of the best-performing stocks of the pandemic. Who woulda guessed it.
When you spot the greatest fashion moment of the red carpet, you have to give props.