Please ensure Javascript is enabled for purposes of website accessibility

Why Crocs Stock Gained 25% in September

By Demitri Kalogeropoulos - Updated Oct 4, 2019 at 1:50PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors grew more confident in accelerating sales growth on the way from the shoemaker.

What happened

Crocs (CROX -0.22%) investors beat the market last month as the stock jumped 25% compared to a 2% increase in the S&P 500, according to S&P Global Market Intelligence. That rally put shares back in positive territory for the year after they had been down by more than 30%.

A pair of green rubber shoes.

Image source: Getty Images.

So what

The shoe specialist attracted a few upgrades by Wall Street analysts in September, with some investors seeing reason to believe an operating rebound is on the way. To be sure, Crocs said in early August that new releases are finding traction with consumers and that costs are also moderating. These trends helped push adjusted operating income higher by 13% in Q2.

Now what

CEO Andrew Rees and his team are projecting accelerating growth over the next six months, which should show up as higher retailing sales and expanding gross and operating profit margins. These forecasts depend on a strong holiday shopping season and on the continued popularity of new releases. If the consumer goods seller can navigate these challenges, the stock should continue rallying into 2020.

Demitrios Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Crocs, Inc. Stock Quote
Crocs, Inc.
$76.58 (-0.22%) $0.17

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/18/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.