What happened
Shares of Crocs (CROX +0.24%) climbed 26% in October, according to data from S&P Global Market Intelligence, after the casual footwear specialist announced strong third-quarter 2019 results.
Though shares drifted higher in the weeks ahead of Crocs' quarterly update last month, they rallied nearly 16% immediately after its report hit the wires on Oct. 30.
IMAGE SOURCE: CROCS.
So what
Crocs' results were indeed impressive; quarterly revenue rose 19.8% year over year (or 21% at constant currencies) to $312.8 million, including a 25.4% increase in wholesale revenue, 28.2% growth from e-commerce sales, and retail comparable-sales growth of 12.5%. On the bottom line, that translated to adjusted net income of $40.2 million, or $0.57 per share.
Analysts, on average, were only modeling earnings of $0.40 per share on revenue closer to $302 million.
CEO Andrew Rees called it "an excellent quarter," singling out "another highly successful back to school season" in the company's Americas business.
Now what
If that weren't enough, Crocs told investors to expect fourth-quarter revenue between $245 million and $255 million, up a healthy 15.7% year over year. In fact, Crocs raised its full-year outlook to call for 2019 revenue growth of 11% to 12%, up from its old target range calling for an increase of 9% to 11%.
In the end, it was hard to argue with this straightforward beat-and-raise performance -- and Crocs stock responded in kind last month.
