Crocs Stock soars after profit. Price target raised on “stellar” results.
shares surged Thursday after the shoe company posted higher-than-expected third-quarter profits despite plant closures and supply chain issues.
The company reported record revenue of $ 625.9 million, an increase of 73% from the same period last year.
(ticker: CROX) also beat analysts’ earnings estimates, posting earnings of $ 2.47 per share, down from 94 cents a year earlier.
Analysts polled by FactSet were looking for earnings per share of $ 1.87 on revenue of $ 606.8 million.
Piper Sandler analysts called the company’s results “stellar,” saying they are still buying the stock.
Crocs has posted higher-than-expected earnings per share and sales each quarter since March 2020, supported by increased demand for comfortable and fashionable shoes.
The stock jumped 8.9% to $ 147.97 on Thursday morning. Shares have climbed 140.6% year-to-date.
Digital sales increased 68.9% and now represent 36.8% of revenue. That’s slightly down from 37.7% in 2020, but up from 32.2% in 2019.
Piper Sandler analyst Erinn Murphy reiterated her overweight rating on the stock Thursday, but raised her target price from $ 212 to $ 215.
âThe brand continues to reach new heights with consumer demand, and we’re encouraged by the discipline around inventory management,â Murphy wrote.
Piper Sandler called the company’s results “stellar,” saying they are still buying the stock.
The growth comes even as Crocs grappled with continued disruptions in the global supply chain and the shutdown of its Vietnamese factories. The company has nine facilities in Vietnam that were closed for several weeks in the third quarter, which mainly affected its operations in Europe, the Middle East and Africa, Murphy wrote.
Regardless, EMEA revenue grew another 42.8% this quarter. The Americas region saw sales increase 94.5% to $ 455.9 million, and Asia-Pacific saw revenue increase 21.2%.
Barron recommended buying Crocs in April, making an initial bullish call on the stock in September 2020.
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