Why Is Crocs (CROX) Stock Rocketing Higher Today
What Happened:
Shares of footwear company Crocs (NASDAQ:CROX) jumped 12.4% in the afternoon session after the company reported fourth-quarter results that exceeded analysts' revenue and EPS expectations, driven by a better-than-expected performance at both its Crocs and HEYDUDE brands. Its full-year 2024 revenue and earnings guidance exceeded Wall Street's estimates despite next quarter's earnings guidance coming in soft. For 2024, the company expects its Crocs brand to grow revenue by 5% year on year and for its HEYDUDE brand to be flat to slightly up - an improvement from the 18.5% decrease HEYDUDE posted this quarter. Zooming out, this was still a decent, albeit mixed, quarter, showing that the company is staying on track.
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What is the market telling us:
Crocs's shares are quite volatile and over the last year have had 21 moves greater than 5%. But moves this big are very rare even for Crocs and that is indicating to us that this news had a significant impact on the market's perception of the business.
Crocs is up 30.4% since the beginning of the year, but at $122.24 per share it is still trading 19.1% below its 52-week high of $151.13 from April 2023. Investors who bought $1,000 worth of Crocs's shares 5 years ago would now be looking at an investment worth $4,388.
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