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shares of crocs (NASDAQ:Crocs) Shares soared 20.3% on Monday after the company updated its outlook for the fourth quarter and full year 2023, citing strong holiday season sales.
About Crocs’ impressive holiday season
In a press release Monday morning, Crocs told investors it expects sales to increase 1% year over year in the fourth quarter of 2023, down from -4% previously expected. He said it was significantly higher than that. Crocs’ strong fourth quarter performance was driven solely by the company’s namesake brand, with sales increasing by nearly 10%, more than offsetting the HEYDUDE division’s 19% decline.
Crocs CEO Andrew Rees said it was a “successful holiday season with market share growth for both brands.”
As a result, Crocs has revised its full-year sales forecast for 2023 upwards from its previous forecast of 10-11% growth compared to 2022. The company also raised its 2023 adjusted (non-GAAP) operating margin outlook to over 27%, a slight improvement from previous guidance for the metric to reach “approximately 27%.”
What next for Crocs investors?
Crocs also gave investors a glimpse of its expectations for next year, providing preliminary guidance for 2024 revenue growth of 3% to 5%. Within that total, Crocs brand sales should increase by 4% to 6% (from just over $3 billion in 2023), and HEYDUDE brand sales should increase from “flat to slightly above $949 million last year.” It should increase.
Even after the latest scandal, Crocs’ stock price has fallen about 8% over the past year, and investors are right to hope that the company will finish 2023 on a strong note. If Crocs can maintain this momentum over the next few quarters, it could prove to be a worthy portfolio candidate in 2024.
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Steve Symington has no position in any stocks mentioned. The Motley Fool recommends Crocs. The Motley Fool has a disclosure policy.
The post Why Crocs Stock Soared Today was originally published by The Motley Fool
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