Some have dubbed Crocs the “it” shoe of the pandemic, as the clog has become a staple for consumers seeking comfort during their more casual pandemic lifestyle.
Popularity helped Crocs see impressive sales gains last quarter, but investors, fearing it was for the best, sold the stock on Tuesday. The stock closed 3.8% at $ 80.01 on Tuesday, but the stock more than doubled over 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,” Andrew Rees, CEO of Crocs, told CNBC’s “Power Lunch.”
Rees said he remains optimistic that the brand can grow with the help of product innovations like the introduction of new sandals to its portfolio. He also noted that the shoe brand was trending before the pandemic and put it in a good position when Covid-19 hit.
“Sandals are a large category of products and the sandal market we have access to is approximately $ 30 billion worldwide,” said Reese.
The growth of their shoe spell, or jibbitz, also contributed to the successful year the brand doubled in the last year when loyal Crocs fans personalized their shoes to make them one of a kind.
The shoe also has a strong following and has fans of Justin Bieber, Post Malone and Priyanka Chopra.
Earlier Tuesday, Crocs announced that fiscal fourth quarter net income rose from $ 19.9 million, or 29 cents per share last year, to $ 183.3 million, or $ 2.69 per share. Excluding items, Crocs made $ 1.06 per share.
Revenue increased 56.5% to $ 411.5 million. Crocs predicts sales will grow 40% to 50% for the first quarter and between 20% and 25% for the full year.