Justin Bieber with his Crocs collab. Crocs.
Shares of Crocs Inc. soared to a record high after the footwear retailer said it expects its revenue to climb to more than $5 billion by 2026.
Crocs, which analysts project will post sales of $2.27 billion this year, is forecasting an annual growth rate of more than 17 percent for the next four years. Company executives spoke on Tuesday in an online presentation to investors.
The shares rose 8.5 percent to $149.38 in New York trading. The stock has advanced almost 140 percent in 2021.
The company has seen its sales and stock skyrocket since the start of the pandemic, powered in part by high-profile collaborations with celebrities such as Justin Bieber and Bad Bunny. The distinctive plastic shoes have also been buoyed by the trend toward comfortable, at-home footwear even as the overall category posted a decline in the last year. They’re also popular with healthcare workers who work long hours standing up.
The Niwot, Colorado-based clog maker is also boosting its share repurchase program.
Chief Executive Officer Andrew Rees said that to combat manufacturing issues in Vietnam, the company has moved some of its production to other parts of the world and is using air freight to move product. This more expensive mode of transport is gaining popularity in the world of apparel as shipping and port bottlenecks persist and hinder companies’ efforts to keep their stores stocked amid rising demand. Crocs joins peers such as Adidas AG and Lululemon Athletica Inc. in boosting its use of air freight.
Byy Janet Freund and Augusta Saraiva.
The polarising clogs invaded closets during the pandemic and are cementing their influence with streetwear collaborations and a new retail sales strategy.