Shares of Crocs (CROX) rose 7.6% on Friday after the innovative casual footwear maker provided a better-than-expected revenue outlook for 3Q. The company projects sales to increase by approximately 10% year-over-year in the current quarter, which comes to $344.1 million. Analysts are projecting revenues of $305.3 million in the quarter.
Crocs’ CEO Andrew Rees said, “As a brand, we have proven resilient in the face of adversity and are emerging from the COVID-19 crisis with tremendous optimism.” He further stated, “We have experienced exceptional consumer demand and strong sell throughs. As a result, we expect revenue growth of approximately 10% in the third quarter and anticipate our business continuing to strengthen. (See CROX stock analysis on TipRanks).
On August 4, Piper Sandler analyst Erinn Murphy reiterated her Buy rating as well as the price target of $45 (7.2% upside potential) saying that Crocs has the capability to attain $2 billion in revenues and $5 in earnings by 2025.
Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 5 Buys and 3 Holds. The average price target of $44.50 implies an upside potential of about 6% to current levels. Shares have remained flat year-to-date.