Crocs stock surged on Tuesday, as the clogs maker talked up its sales prospects and announced an accelerated buyback program — aided by expected jump in digital growth and markets abroad.
CFO Anne Mehlman said at the Crocs (CROX) Investor Day presentation that the casual-footwear company was targeting more than $5 billion in sales by 2026.
The company also announced its intent to buy an extra $500 million in Crocs stock by the end of the year — putting its repurchase program at $1 billion this year.
Crocs reiterated its financial outlook for 2021. In July, Crocs forecast sales growth of 60%-65%. Second-quarter results for Crocs, reported at that time, beat estimates.
Crocs stock launched 11% higher to 153.40 in the stock market today. Shares hit a record 157.80 intraday. CROX stock has a best-possible Composite Ratings of 99.
Deckers (DECK) was up 4.1% to 435.98, rebounding from its 50-day line and offering early entry. That stock was in a flat base with a 444.58 buy point. DECK stock was added to IBD Leaderboard on Tuesday.
The gains for Crocs stock have been propelled by young, loyal customers, and efforts to allow those customers to personalize their shoes with attachable charms called Jibbitz. The company has partnered with celebrities like pop star Justin Bieber and DJ and producer Diplo.
On Tuesday, Crocs said that they had transformed clogs from a consumer “need” to “a want,” turning the items into collectables by dialing in to relevant trends, be it tie-dye or marbleized designs or other new colors.
Management said that in the future, sandals and markets like China would play a bigger part in pushing sales higher.
“Digital, sandals and Asia will power our growth and be the fastest growth drivers,” Mehlman said during the presentation.
Crocs stock is up 147% so far this year.
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