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Crocs Down Despite Beating Q4 Earnings, Revenue Expectations

Published 02/16/2022, 11:11 AM
Updated 02/16/2022, 11:13 AM
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By Sam Boughedda

Investing.com - Crocs Inc (NASDAQ:CROX) shares are down more than 5% Wednesday despite the company beating Wall Street analyst expectations in its fourth-quarter earnings. 

The shoe brand announced earnings per share of $2.15 on revenue of $586.6 million. Analysts polled by Investing.com expected EPS of $1.93 on revenue of $581.84 million.

Revenue rose 42.6% from the same period last year, while it achieved record revenue for the full year of $2.31 billion, a 66.9% increase from 2020.

"A strong 2021 holiday season completed a very successful year for our brand. We achieved incredible results with record revenues of $2.3 billion, 67% revenue growth and industry-leading 30% operating margin," said Andrew Rees, Crocs CEO.

"Our fourth straight year of revenue growth was fueled by continued strong consumer demand for the Crocs brand globally," he added.

Despite the earnings beat, Crocs' share price decline may because of the company's revenue guidance for the first quarter. Crocs sees revenue for Q1 in a range of $605 million to $630 million, implying a 31% to 37% growth compared to Q1 2021. However, the FactSet consensus is for $644.4 million. The figure includes the HEYDUDE acquisition, which is expected to close in February 2022. 

For the full year, revenue growth for the Crocs brand is forecast to exceed 20% compared with 2021, with adjusted EPS of $9.70 to $10.25. 

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