Crocs raised its full-year forecasts, and its shares jumped about 27% on Thursday. The company pointed to a recovery at its HEYDUDE brand and steady demand for its clogs, while the wider footwear sector struggles with uneven consumer spending.
Crocs shares surged about 27% on Thursday after the footwear maker raised its full-year forecasts. The company is betting on a sustained recovery at HEYDUDE and steady demand for its namesake clogs.
The stock rose to $151.82, its highest in two years. If the gains hold, it will mark the best day for the shares since 2018.
Crocs' outlook contrasts with a broader footwear sector that has been grappling with uneven consumer spending, elevated costs and heavy competition for shoppers. Many brands have had to rely on promotions to drive sales.
Crocs now forecasts 2026 revenue growth of about 3%, up from its prior forecast of 1% to 2%. It said HEYDUDE's turnaround gained traction as retailers placed faster-than-expected orders because inventory sold quickly. That helped wholesale revenue climb 14%.
Management also addressed the pressure on shoppers. CEO Andrew Rees said on the earnings call: "We see weakness at the low-end consumer, and we see strength at the high-end consumer", describing a "K-shaped economy".
Despite those pressures, Crocs said its brands benefit from relatively affordably priced products, selling in the $50 to $60 range. CFO Patraic Reagan said the company feels very confident it can protect profitability even in an inflationary environment, citing pricing actions, supply-chain and cost-saving measures.
Source: Investing.com
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