On Monday, Crocs shared its fourth quarter outlook which entailed a 25% increase in its 2021 sales. The shoe making company’s shares soared after the company raised its fourth quarter outlook.
According to Crocs, 2021 sales will accelerate by 25% which will add to the company’s sales during the holidays. Crocs’ stock was up by almost 11% in the premarket trading.
Year Over Year Sale Increase
Ahead of the yearly ICR Conference, Crocs announced that it was calling for an increase in its fourth quarter sales by about 55% year over year. This is estimated to be worth about $407 million to $410 million which is 20% to 30% increase of the initial outlook.
Crocs explained that it expects its 2020 full year sales to increase by more than 12% (which is about $1.38 billion), an increase from the previous range of 5% to 7%. For this year, the company is eyeing a 25% increase.
According to Chief Executive Andrew Rees, the company will deliver the highest revenue in Croc’s history amidst this global pandemic.
Although Crocs was previously rejected by the fashion world, in recent years the company has been able to put its name out there. By collaborating with big names like Justin Bieber and Post Malone, the rubber shoes company has been able to grow globally. Croc’s glow-in-the-dark collaboration with Bad Bunny sold out fast after the September launch. These quirky collaborations appealed most to the millenials and Gen Z’ers alike.
The company also teamed up with restaurant chain KFC which was a huge add to its footwear portfolio. During the pandemic, the company has been able to grow because of its comfort shoes.
Over the past 12 months, Crocs shares have risen by more than 53%.
Crocs’ Pandemic Sales Spike
Speaking during the annual ICR investor conference, Rees explained that the consumer’s need for comfort amidst the pandemic was the key driver of this year’s sales. He also added that the clogs’ ease of cleaning and disinfecting was another reason for its appeal during the pandemic. The CEO assured that value and comfort will still be the company’s motivation going forward.
Younger consumers were also drawn to the company’s iconic shoes. In North America, young girls steered growth first but as the year progressed, young boys were also drawn to the shoes further increasing the growth curve. With the pandemic raging on, Crocs may experience even more sales.