Crocs (CROX) stock soared after the shoe maker topped fourth-quarter revenue views early Thursday and reported an optimistic 2023 outlook with profits exceeding analyst consensus views.
The Colorado-based footwear company reported early Thursday fourth-quarter earnings grew 23% to $2.65 per share while revenue increased 61% to $945 million. Those numbers easily cleared analyst targets of $2.26 and $939.26 million.
For the full year, Crocs EPS advanced 31% to $10.92 while sales edged up 54% to $3.55 billion.
Crocs stock surged more than 7% to 134.5o Thursday during premarket trade.
Crocs reported revenue increased 6% on a constant currency basis in North America, while Asia Pacific-region revenue grew 47%. Sales also increased 47% across Europe, Middle East, Africa and Latin America.
“Consumer demand for the Crocs and HEYDUDE brands has been exceptional, fueling record 2022 revenues for both brands,” CEO Andrew Rees said in a statement.
Rees added the company projects another record year in 2023 with “growth expected to be led by sandals and international for the Crocs Brand and increased U.S. market penetration for HEYDUDE.”
In Q1 2023, the footwear company expects revenue to grow 27%-30% with adjusted EPS of $2.06-$2.19. Crocs predicts adjusted operating margin of approximately 24%-25%.
For full year 2023, Crocs sees sales increasing 10%-13% to $3.9 billion-$4.0 billion at current currency rates. The company expects full-year earnings of $11-$11.31 per share. The Colorado-based company forecasts its Crocs brand sales will grow 6%-8% in 2023.
Analysts predict full-year EPS of $10.86 and $3.97 billion in revenue, according to FactSet.
CROX shares are rebounding from support at their 50-day moving average. Crocs stock has a buy point of 131.28, with the buy range extending to 137.84, according to Leaderboard analysis.
Crocs stock is an IBD Leaderboard watchlist stock, and also sits sixth on the IBD 50 list.
CROX shares lead IBD’s Apparel-Shoes & Retail Manufacturing industry group, which ranks a strong No. 12 among the 197 industry groups tracked by IBD. Crocs stock has a 99 Composite Rating out of 99. The stock also has a 97 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share-price movement. The EPS Rating is 98.
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