Shares of Crocs jumped 11% in the pre-market session on Tuesday as the shoe manufacturing company posted strong 1Q results. Record revenue growth of 64% along with outstanding performance in all regions and channels drove the stellar performance.
Crocs’ (CROX) 1Q adjusted earnings of $1.49 per share surged significantly on a year-over-year basis and outpaced the Street estimates of $0.89 per share. Revenues jumped 64% to $460.1 million, topping analysts’ expectations of $414.23 million.
The company’s direct-to-consumer increased 93.3%, while wholesale revenues were up 50.1%. Additionally, digital sales grew 75.3%, while the Asia region recorded growth of 26.2%. (See Crocs stock analysis on TipRanks)
Crocs CEO Andrew Rees said, “Demand for the Crocs brand is stronger than ever with expected 2021 revenue growth of 40% to 50%…We have raised full year guidance as we continue to see consumer demand for our product accelerate globally.”
For 2Q, the company projects revenue to grow by 60%-70% year-over-year.
On April 23, Pivotal Research analyst Mitch Kummetz reiterated a Buy rating and a price target of $100 (17.9% upside potential) on the stock.
Crocs shares have exploded 261% over the past year, while the stock still scores a Strong Buy consensus rating, based on 4 Buys versus 1 Hold. That’s alongside an average analyst price target of $96.40, which implies 13.6% upside potential to current levels.
On top of this, Crocs scores a 9 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.