Some have called Crocs the “it” shoe of the pandemic, as the clog became a wardrobe staple for consumers looking for comfort during their more casual pandemic lifestyle.
Its popularity helped Crocs drive a staggering sales surge in the last quarter, but investors, fearing the best was behind it, sold the stock Tuesday. Shares closed 3.8% on Tuesday at $ 80.01, but the stock has more than doubled in the past year.
“The pandemic has allowed us to reach new customers, but I think consumers are also focused on what we can bring them in the future,” Andrew Rees, Crocs CEO, 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 hit.
“Sandals is a large product category and the sandal market available to us is approximately $ 30 billion worldwide,” said Reese.
The growth of their shoe charms, or Jibbitz, also contributed to the successful year the brand had, doubling over the past year as loyal Crocs fans personalize their shoes to make them unique.
The shoe also has a strong celebrity following, counting Justin Bieber, Post Malone and Priyanka Chopra among its fans.
Earlier Tuesday, Crocs said net income for the fiscal fourth quarter rose to $ 183.3 million, or $ 2.69 per share, from $ 19.9 million, or 29 cents a share, a year earlier. Excluding items, Crocs earned $ 1.06 per share.
Sales increased 56.5% to $ 411.5 million. Crocs said it expects sales to grow 40% to 50% in the first quarter, and between 20% and 25% for the full year.