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Crocs
said Monday that it expects record revenue growth in 2021, but the positive outlook did not do enough to lift the price given the deteriorating market sentiment of retailers.
The footwear brand expects $ 2.31 billion in revenue compared to $ 1.38 billion reported in 2020. This reflects about 67% revenue growth in 2021, exceeding the Wall Street consensus requirement of 65%.
Shares of
Crocs
(ticker: CROX) fell 2.47% to $ 122.6 at Monday’s close. That S&P 500 fell 0.1 per cent.
While the data point is positive, “we think the market is more likely to focus on the negatives,” said UBS analyst Jay Sole, who has a neutral rating on the stock with a price target of $ 175. “The market is worried that retail will slow down in the next 6 months and retailers’ margins will fall,” Sole said. Barrons.
He pointed to specialty retailers as Lululemon Athletica (ticker: LULU) and
Bath & Body Works
(BBWI) that signaled macro factors hurt sales in January. The athletic retailer expects fourth-quarter revenue to be at the low end of its $ 2.125 billion to $ 2.165 billion range, while Bath & Body expects earnings per capita to be $ 2.165 billion. streets consensus of $ 2.27.
Most recent, Cros bought Heydude, an Italian casual footwear brand, last month. It makes lightweight and comfortable products such as slip-ons for men, women and children, at a cost of around $ 60.
Revenue growth for Crocs, excluding sales from its recent acquisitions, is expected to exceed 20% this year compared to 2021.
“2021 turned out to be a unique year for the Crocs brand,” said Andrew Rees, CEO of Crocs. “We remain incredibly confident in the Crocs brand and expect to continue to achieve $ 5 billion in revenue by 2026, even before any Heydude revenue.”
Crocs the goods Barrons share election in September 2020.
The company’s announcement on Monday preceded this week’s ICR conference, one of the largest investment conferences this year. Crocs is scheduled to hold a presentation on Tuesday.
Write to Karishma Vanjani at karishma.vanjani@dowjones.com
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