Crocs has raised its revenue forecasts for the year after doubling its first-quarter profits and bringing in record revenues.
The Broomfield shoe company's growth rate is expected to slow down as the year 2023 progresses, according to executives. This news dragged the stock price of the shoe seller.
Crocs Inc., (Nasdaq CROX), reported first-quarter revenue that was 39.5% higher than what it reported last year. The brand now expects sales for 2023 to be between $3.95 and $4.05 billion.
Crocs' direct-to consumer sales are a positive sign, in addition to their strong business with retailers. This is according to CEO Andrew Rees.
On an earnings call, he stated, 'That gives me tremendous confidence that consumers want our brands and are looking for them.'
He acknowledged that he expected Crocs to slow down its overall growth rate because it is now being compared with the hot 2022 results and due to an economic slowdown.
Rees stated that consumers will soften as the year progresses. I think we saw some softening in quarter one, so we are not expecting the same performance as we did last quarter.
Crocs' first-quarter profit doubled from the previous year to $149.5 million. Quarterly revenue was $884.2 millions, which is a 33.9% increase in sales over the same period last year.
Crocs' quarterly results continue a successful streak that began just before the Covid-19 Pandemic. This success led to booming sales during early lockdowns in the U.S.
The company will also buy the HeyDude shoe brand for $2.5 billion at the end of 2021. This acquisition will add to its organic growth.
Crocs' second-quarter revenue is expected to grow by 6-9% compared to 2022.
Anne Mehlman, CFO, explained that the quarter is a rough comparison with 2022 because Crocs had just closed its factories in Vietnam due to pandemics a year earlier.
She said, 'We'd had very low inventories after the first quarter.'
Crocs estimates a 11% to 14% revenue increase for the full year 2023.
Investors reacted negatively to the fact that this guidance was an increase from what had been announced previously.
Crocs' stock price fell nearly 16% at the end of Thursday's trading, to $124.32 a share.
The decline reverses some of the steady growth that has occurred so far in this year.
Crocs' stock price has risen by more than 82% this year.