Some have called the Crocs the “it” shoe of the pandemic, as the clog became a wardrobe staple for consumers seeking comfort during their more casual pandemic lifestyle.
The popularity helped propel Crocs to make impressive sales gains in its latest quarter, but investors, fearing the best was behind, sold the shares on Tuesday. The shares closed down 3.8% to $ 80.01 on Tuesday, but the shares have 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,” Crocs CEO Andrew Rees told CNBC’s “Power Lunch.”
Rees said he remains optimistic that the brand can grow with the help of product innovations, such as the introduction of new sandals in its portfolio. He also noted that the shoe brand was trending even before the pandemic, putting them in a good position when Covid-19 arrived.
“Sandals is a large product category and the accessible market for us around sandals is around $ 30 billion globally,” Reese said.
The growth of its shoe charms, or Jibbitz, also contributed to the brand’s successful year, doubling in the last year as loyal Crocs fans personalize their shoes to make them unique.
The shoe also has a huge celebrity following, with Justin Bieber, Post Malone, and Priyanka Chopra among its fans.
Earlier Tuesday, Crocs said its fiscal fourth quarter net income increased to $ 183.3 million, or $ 2.69 a share, from $ 19.9 million, or 29 cents a share, the prior year. Excluding items, Crocs earned $ 1.06 per share.
Revenue increased 56.5% to $ 411.5 million. Crocs said it expects revenue to grow 40-50% in the first quarter and 20-25% for the full year.