Shares of Crocs (NASDAQ:CROX) skyrocketed 35.3% in November, according to data from S&P Global Market Intelligence, after the casual footwear specialist announced better-than-expected third-quarter 2018 results.
Nearly all of Crocs' gains came the day after it told investors that quarterly revenue had climbed 7.3% year over year to $261.1 million, far above the $230 million to $240 million guidance range management provided three months earlier. Crocs' bottom line also swung from a $0.03-per-share loss in last year's third quarter to net income of $6.5 million, or $0.07 per share, well ahead of Wall Street's expectations for a loss of a $0.01 per share.
Cross was able to increase its top line despite a negative $15 million impact related to strategic store closures and business model updates. And the company took advantage of its depressed share price by repurchasing 604,000 shares during the quarter for just over $11 million.
"We achieved these strong results by continuing to grow our brand strength and demand for our clogs and sandals," stated CEO Andrew Rees. "We anticipate a strong finish to the year and have increased our 2018 guidance accordingly, and we are excited about our prospects for 2019."
For full-year 2018, Crocs now expects revenue to increase 4% to 5% year over year, up from its old outlook for low-single-digit growth. Crocs also called for gross margin to increase roughly 100 basis points over 2017, near the high end of its old target for a 70- to 100-basis-point increase.
Finally, the company predicted 2019 revenue will increase in the mid-single-digit range over 2018, as e-commerce and wholesale revenue continue to offset lower retail sales stemming from store closures.
In the end, there was little not to like about Crocs' beat-and-raise performance last month, and the stock simply responded in kind.