Some have called Crocs the “it” shoe of the pandemic, as the clog has become a staple for consumers seeking comfort during their more laid-back pandemic lifestyle.
Popularity helped push Crocs to impressive sales gains in its final quarter, but investors, fearing the best were behind, sold off the stock on Tuesday. Stocks closed 3.8% lower at $ 80.01 on Tuesday, but the stock has more than doubled in the past year.
“The pandemic has allowed us to reach new customers, but I think consumers are also focused on what we can offer them in the future,” Crocs CEO Andrew Rees told The Power Lunch from CNBC.
Rees said he remains optimistic about the possibility for the brand to grow with the help of product innovations, such as the introduction of new sandals to its portfolio. He also noted that the shoe brand was in fashion even before the pandemic, which put them in good stead when Covid-19 hit.
“Sandals are a big product category and the market accessible to us around sandals is around $ 30 billion worldwide,” Reese said.
The growth of their shoe charms, or Jibbitz, also contributed to the brand’s successful year, doubling last year as loyal Crocs fans customize their shoes to make them unique.
The shoe also has strong fame and counts Justin Bieber, Post Malone and Priyanka Chopra among its fans.
Earlier Tuesday, Crocs said its fiscal fourth quarter net income jumped to $ 183.3 million, or $ 2.69 per share, from $ 19.9 million, or 29 cents per share, a year higher early. Excluding items, Crocs earned $ 1.06 per share.
Revenue increased 56.5% to $ 411.5 million. Crocs said it expects its revenue to increase 40% to 50% in the first quarter and 20% to 25% for the full year.