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Crocs (CROX) Up on Raised Q4 & 2020 View, Strong 2021 Projection

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Shares of Crocs Inc. (CROX - Free Report) rose 12% on Jan 11 after it raised the view for the fourth quarter and 2020. Moreover, investors were pleased with the company’s accelerated revenue guidance for 2021, driven by strong business momentum amid the pandemic-led rise in demand for casual footwear and increased digital sales.

The company anticipates fourth-quarter 2020 revenues to increase 55% to $407-$410 million compared with the earlier stated 20-30% growth. The revised view is significantly higher than the Zacks Consensus Estimate for revenues of $330.7 million, indicating growth of 25.7% from the year-ago reported figure.

Moreover, it predicts 2020 revenues of $1,381-$1,384 million, suggesting year-over-year growth of more than 12%. This marks a sharp increase from the previously stated 5-7% revenue growth for 2020. The Zacks Consensus Estimate for revenues is pegged at $1,305 million.

Additionally, the company anticipates the current momentum and brand strength to continue in 2021. Consequently, it expects revenue growth between 20% and 25% for 2021, which is significantly higher than the Zacks Consensus Estimate of 12.1%.

Notably, Crocs has been benefiting from brand strength and healthy demand in its key products, including Clogs, Sandals, Jibbitz and Visible Comfort technology. It envisions strong potential for growth in sandals in the near-term, with a focus on female customers. Apart from this, the company has been gaining from robust online momentum amid the pandemic.

The company is making significant progress in expanding digital and omni-channel capabilities. While stores remained open for limited hours during the third quarter, Crocs witnessed strong online demand and leveraged its omni-channel capabilities to fulfill online orders and serve customers. This resulted in a 36.3% year-over-year increase in digital sales in the third quarter, marking the 14th successive quarter of double-digit e-commerce growth. This solid momentum in the digital platform is likely to continue in the days ahead as consumers are increasingly shifting to online shopping.

Backed by the aforementioned positives, shares of this Zacks Rank #2 (Buy) company gained 53.6% in the past three months compared with the industry’s growth of 16.1%.

 

 

Looking for Other Favorable Stocks? Check These

Ralph Lauren Corporation (RL - Free Report) has an expected long-term earnings growth rate of 8.5%. The company sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Deckers Outdoor Corporation (DECK - Free Report) has an expected long-term earnings growth rate of 18.6%. It presently has a Zacks Rank #2.

V.F. Corporation (VFC - Free Report) , also a Zacks Rank #2 stock, has an expected long-term earnings growth rate of 12.3%.

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