Headquartered in Niwot, CO, Crocs Inc. (CROX - Free Report) is a leading specialty footwear retailer for men, women, and children. All Crocs shoes feature Croslite, a proprietary material that gives each pair of shoes a soft, comfortable, lightweight, non-marking, and odor-resistant quality that consumers know and love.
Q2 Earnings Recap
Back in July, Crocs reported better-than-expected second quarter results, and delivered huge beats on both the top and bottom lines.
Global revenues reached $331.5 million, and four out of five of the company’s key geographies delivered growth: U.S., Korea, China, and Germany. E-commerce revenue soared 67.7% year-over-year, with strong growth in all regions.
Adjusted earnings per share hit $1.01, easily beating the Zacks Consensus Estimate of $0.12 per share.
Cash flow from operations almost doubled; cash and cash equivalents were $151.4 million as of June 30.
"Amidst unprecedented market conditions globally, we delivered exceptional performance in our Americas and e-commerce businesses and increased profit despite a very challenging environment,” said president and CEO Andrew Rees.
“Our performance demonstrates the strength of the Crocs brand and underscores the work we've done expanding the desirability, relevance, and consideration of our brand and product offering globally,” he continued.
CROX Breaks Out
Since March 23, shares of CROX have surged over 277% compared to the S&P 500’s 54% increase. Earnings estimates have been rising too, and CROX is a Zacks Rank #1 (Strong Buy) right now.
For the current fiscal year, four analysts have revised their bottom-line estimate upwards in the last 60 days, and the Zacks Consensus Estimate has moved up over one dollar to $1.95 per share. Earnings are expected to grow about 21% compared to the prior year period. 2021 looks strong too, and earnings should see double-digit year-over-year growth.
Like many other retailers, the coronavirus pandemic has taken a toll on Crocs; its brick-and-mortar stores were forced to close earlier this year (most have now reopened), and its supply chain has certainly been affected.
But, Crocs is seeing a resurgence in demand, and more people are turning to its comfort-forward shoes, especially as working from home becomes the norm. Even though the growth rates seen during the Covid crisis are beginning to temper, the retailer expects to resume pre-pandemic growth levels next year.
If you’re an investor searching for a retail stock to add to your portfolio, make sure to keep CROX on your shortlist.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>