Crocs shares soar as pandemic drives demand for "comfortwear"
Shares of Crocs, the maker of foam clogs worn by everyone from children to celebrity chefs, soared Tuesday after the shoemaker raised its 2021 sales forecast.
The company said it expects revenue for the year to increase between 40% and 50%, up from its previous estimate of 20% to 25%. The company's stock price surged 13% on the news, closing at $97.82 Tuesday.
Demand for the shoes is "stronger than ever," CEO Andrew Reiss said. "In the first quarter we achieved record revenues and profitability, with growth in all regions and all channels. We have raised full-year guidance as we continue to see consumer demand for our product accelerate globally."
Indeed, the musical artist known as Questlove even wore a pair that had been spray-painted gold to this year's Academy Awards.
More broadly, the pandemic has driven unprecedented consumer interest in leisure wear and other comfortable fashion styles that are conducive to working from home — and aren't usually seen in offices. Experts don't expect the "comfortwear" trend will fade anytime soon, even as workplaces reopen around the country.
Crocs sales grew 64%, soaring to $460 million in the company's first quarter, as many Americans continue to work from home, and choose comfort over style. Crocs reported record revenue of $1.4 billion in 2020.