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Why Crocs Stock Jumped Wednesday

By Daniel Sparks - Oct 30, 2019 at 1:16PM

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The footwear company easily beat third-quarter expectations.

What happened

Shares of footwear company Crocs (CROX -0.39%) jumped on Wednesday, rising as much as 15.3%. But as of 12:33 p.m. EDT, the stock was up 13.1%.

The stock's gain follows the company's third-quarter update, which included better-than-expected top- and bottom-line results and an improved outlook from management for the company's full-year performance.

A chart showing a stock price moving higher.

Image source: Getty Images.

So what

Crocs reported a 19.8% year-over-year increase in revenue to $312.8 million. On average, analysts expected the retailer to report revenue of $302.1 million. The company's non-GAAP (adjusted) earnings per share were $0.57, up from $0.19 in the year-ago quarter and ahead of analysts' average forecast for $0.40.

"Our Americas business delivered exceptional growth, driven in part by another highly successful back to school season," said Crocs CEO Andrew Rees in the company's third-quarter earnings release.

Now what

Based on this strong performance and the company's progress so far in the current quarter, Crocs is raising its full-year revenue outlook. The company says it now expects 2019 revenue to increase 11% to 12% year over year. This is up from previous guidance for 9% to 11% growth.

The company's full-year outlook includes negative impacts of $28 million from currency changes and $20 million from store closures.

Daniel Sparks 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.

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Stocks Mentioned

Crocs, Inc. Stock Quote
Crocs, Inc.
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