Crocs Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Crocs (NAS: CROX) jumped 15% on Wednesday after the plastic-shoe specialist said that it expects fourth-quarter sales to be at the high end of its prior guidance.
So what: Coming in at the high end of its previous revenue outlook, around $200 million-$205 million, would take Croc's annual revenue over $1 billion for the first time in the company's history. That represents year-over-year sales growth of more than 25%, which is quite an accomplishment for a company that was fighting for its existence just a few short years ago.
Now what: Recent expansion into sneakers, casual shoes, and boots should continue to spur some decent growth for Crocs. "As we begin our 10th anniversary year in 2012, everyone at Crocs can be proud of what we've achieved together, and we're looking forward to the next 10 years," CEO John McCarvel said. However, given Crocs' still-faddish qualities, I'd be careful about betting on them for that long.
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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