What happened
Shares of Crocs (CROX +0.57%) jumped 7% on Thursday after the footwear company's second-quarter earnings came in significantly above Wall Street's expectations.
So what
Crocs' revenue rose 9.4% year over year to $358.9 million, and 12.5% when excluding the impact of foreign currency translation. This growth came despite the fact that store closures reduced Crocs' sales by approximately $6 million. The gains were fueled by a 9.4% rise in wholesale revenue and an 18% jump in e-commerce revenue. Notably, Croc's comparable-store sales leapt 11.8%.
Crocs' shoes are in high demand. Image source: Crocs.
Crocs' non-GAAP (adjusted) operating income climbed 12.7% to $51.2 million, as adjusted operating margin improved to 14.3% from 13.9% in the year-ago period. Adjusted net income, meanwhile, increased by 3% to $42.6 million, or $0.59 per share. That was well above analysts' estimates for adjusted EPS of $0.45.
"We had a terrific quarter, as demand for our product and brand heat continued to climb," CEO Andrew Rees said in a press release.
Now what
Based on these results and current sales trends, Crocs lifted its 2019 revenue growth forecast to between 9% and 11% year over year, up from a previous projection of 5% to 7%. Analysts had been expecting Crocs to grow its revenue by only 7.1% in 2019.
"We expect our revenue growth in the back half of the year to significantly outpace the first half; accordingly, we are increasing our full-year outlook," Rees said.
