After Crocs (CROX 0.43%) reported a record second quarter today, the stock of the leisure footwear maker is running. As of 11:15 a.m. EDT on Thursday, its shares were 7.8% higher, slightly off the morning's highs. With today's gains, Crocs shares have more than doubled year to date.
The company reported that second-quarter revenue jumped 93% over the prior-year period. Record quarterly revenue of $640.8 million was driven by 136% growth in the Americas region. But the Asia Pacific and Europe, Middle East, and Africa (EMEA) regions also grew 27% and 53%, respectively. The strong results led the retailer to increase its full-year revenue growth and operating margin guidance.
The company said it now expects full-year revenue growth to be between 60% and 65% versus 2020. At the midpoint, that implies the company has a forward price-to-sales ratio of 3.74, the lowest level since April 2021, when Crocs' share price began a steep 65% rise. That increase came on the heels of strong first-quarter results, when the company initially raised 2021 revenue guidance to a range of 40% to 50% compared with last year.
Management called the second-quarter results "exceptional," and the company backed up its optimistic outlook by repurchasing $300 million worth of shares in the quarter at an average price of about $104 per share. Today's jump has shares trading at about $128. Investors seem to be as comfortable buying shares today as they are wearing the product.