What happened

Some holders of Crocs (CROX -0.98%) stock likely feel pretty disappointed with recent returns. Shares of the popular casual footwear maker have tumbled more than 27% in the past month. Most recently, Crocs shares are down about 17% just this week as of early Friday morning, according to data provided by S&P Global Market Intelligence.

So what

But sometimes investing is all about perspective, and Crocs is crushing the market in 2021. Year to date, the stock has soared 113% even after the recent slide. With the lack of company-specific news driving shares lower, it may just be that very success that is the cause of the stock's recent decline. Growth stocks have been under pressure with the prospect of rising interest rates. Crocs has certainly been one of those growth names this year, with revenue expected to grow between 62% and 65% for the full year, based on the company's own outlook. 

Bright green casual sandals on a wooden table.

Image source: Getty Images.

Now what

The company provided its full-year outlook to investors after it reported its third-quarter sales soared 73% compared to the prior year to a record $626 million. And Crocs expects the growth to continue. For the full year 2022, management believes revenue will grow at least another 20% above 2021 levels. 

Crocs is pushing its digital sales channels with both direct-to-consumer and wholesale customers. Digital sales grew 69% year over year in the third quarter, but still only represent about 37% of total revenue. The company aims to push that growth for digital sales so it becomes the source of the majority of its revenue in the next five years.

Crocs is also focusing on geographic expansion. The company calls Asia its largest long-term growth opportunity, with a 25% compound annual growth rate expected through 2026. Much of its growth worldwide will also be driven by a larger role from sandal sales. The company is more well known for clogs, but it sees sandals as its biggest opportunity going forward. 

While its business is acting like a growth name, its recent valuation is more in line with a value stock. After its recent share drop, Crocs has a price-to-earnings ratio of about 11.5. Investors might want to look more into this big 2021 winner after it's given back a small amount of those gains recently.