Crocs, Inc. (CROX - Free Report) has come a long way since its possible bankruptcy in 2009, cementing its position in the market. Despite losing $15 million in sales during the third quarter of 2018 due to store closures and restructuring actions, the company delivered top-line growth, driven by strong performance of its newest franchise — LiteRide (clogs and sandals).
Apart from this, Crocs is witnessing rising traffic as apparent from robust comparable sales across its DTC and wholesale businesses. Notably, the company recorded fifth consecutive quarter of double-digit e-commerce growth during the third quarter. Encouraged by such upsides, management raised its 2018 guidance and also projects mid-single-digit revenue growth in 2019.
Moving on, this Zacks Rank #1 (Strong Buy) company, which shares space with G-III Apparel Group (GIII - Free Report) , boasts an impressive earnings surprise history, beating estimates in three of the trailing four quarters. Moreover, analysts are growing bullish on the stock, apparent from the upward revision in the Zacks Consensus Estimate for earnings. The consensus mark for 2019 has gone up by 25 cents to $1.05 over the past 30 days.
Growth endeavors and stellar performance have led shares of this Niwot, CO-based company to skyrocket 92.2% so far in the year. In the said period, the stock has comfortably outperformed its industry and sector’s decline of 5.5% and 13.6%, respectively. The company’s long-term earnings growth rate of 15% also highlights its growth potential.
With the company’s focus on brand enhancement and product innovation, it is sure to keep its stellar show on. Likewise, other companies in the textile-apparel space are also expected to benefit from their brand enhancement initiatives. To this end, impressive product mix, alliances and buyouts, licensing agreements, constant innovation, and marketing initiatives are likely to help tap growth opportunities. Accelerated investment in the digital realm is another factor driving growth for most textile-apparel companies.
2 Apparel Stocks Likely to Tread on Crocs Path
Here are two Textile-Apparel stocks that are poised to grow in 2019 and carry a favorable Zacks Rank. Clearly, future plans outlined by these companies suggest that there is more room for the stocks to gain.
lululemon athletica inc. (LULU - Free Report) has been riding high on progress pertaining to its strategy for 2020, and stringent focus on digital and international growth. Moreover, the company is gaining from broad-based growth across all categories, channels and geographies. Management expects the solid momentum to continue in fiscal 2018, evident from its raised guidance for the fiscal year. In third-quarter fiscal 2018, lululemon reported seventh consecutive quarter of earnings beat and 12th straight positive sales surprise. The company has trailing four-quarter average positive earnings surprise of 19.5%.
Additionally, share price of this yoga-inspired athletic apparel company has increased almost 47.2% year to date. The company’s long-term earnings growth rate of 19.3% also highlights its growth potential. The Zacks Consensus Estimate for earnings in 2018 went up by 9 cents to $4.32. Currently, lululemon carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Columbia Sportswear Company (COLM - Free Report) , which carries a Zacks Rank #2, marked its seventh straight quarter of earnings beat in third-quarter 2018, with the bottom line delivering positive surprises for 23 quarters in a row. Additionally, shares of this Portland, OR-based company have gained 16.8% so far this year. The company’s long-term earnings growth rate of 10.8% also highlights its growth potential.
Moreover, the company is benefitting from its strong international presence and Project CONNECT program, which are likely to drive sales and earnings growth. Strong performance in wholesale and DTC businesses also act as major growth drivers. The company’s Zacks Consensus Estimate for earnings in 2019 went up by 15 cents to $4.09.
In addition to the stocks discussed above, would you like to know about our 10 top tickers to buy and hold for the entirety of 2019?
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