Some have called Crocs the “it” shoe of the pandemic, as clogs have become a staple for consumers seeking comfort during their more casual lifestyle.
The popularity helped Crocs make amazing sales gains in the last quarter, but investors, fearing they were not far behind, sold the shares on Tuesday. Shares closed 3.8% on Tuesday at $ 80.01, but shares doubled over the past year.
“The pandemic has allowed us to reach new customers, but I think consumers are also focusing 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 mentioned that the footwear brand was on trend just before the pandemic, putting them in a good position when Covid-19 hit.
“Sandals are a large category of products, and the affordable market for us around sandals is about $ 30 billion globally,” Reese said.
The rise of their shoe charms, or Jibbitz, has also contributed to the brand’s successful year, doubling in the last year, as loyal Crocs fans customize their shoes to make them unique.
The shoe also has a strong following of celebrities and counts Justin Bieber, Post Malone and Priyanka Chopra among its fans.
Earlier on Tuesday, Crocs said its fourth-quarter tax revenue rose to $ 183.3 million, or $ 2.69 a share, from $ 19.9 million, or 29 cents a share, with a a year earlier. Except for the articles, Crocs earned $ 1.06 per share.
Revenues rose 56.5 percent to $ 411.5 million. Crocs said revenues are expected to increase by 40% to 50% in the first quarter and between 20% and 25% for the full year.