Crocs Stock Falls 5% Despite Record Q4 Revenue & EPS, What’s Next?

Trade CROX Stock Your Capital Is At Risk
Ollie Martin
Updated: 16 Feb 2022

Key points:

  • CROX stock slipped 5% despite posting impressive Q4 earnings and 2022 outlook
  • Revenue jumped by 42.6%, and EPS doubled from $1.06 to $2.15
  • The company's acquisition of HEYDUDE places the brand in an attractive light in the year to come

Crocs (NASDAQ: CROX), a prominent figure in the casual footwear market, posted fourth-quarter earnings after the bell on Tuesday. Bulls reacted imminently but briefly, soon giving way to a sell-off in Wednesday mid-market trading. Currently, CROX is down just under 5% – surprising on the basis of the companies impressive earnings report for Q4 and full-year fiscal 2021. 

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Revenue was posted at $586.6M for the quarter, a 42.6% increase year-on-year, with adjusted EPS coming in at $2.15 – more than double from last year's EPS of $1.06. Looking at the overall numbers for fiscal 2021, Crocs delivered record revenue of $2.3B, a 66% increase from 2020. 

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Crocs is a bit of an anomaly in the consumer-facing market. The company failed to draw on any supply chain issues or material shortages that are wreaking havoc amongst a wide range of industry competitors, bolstered further by rising demand and an incredibly successful holiday period – a strong time for any consumer-facing brand. 

Looking ahead, Crocs appear well situated in a competitive market following their acquisition of HEYDUDE, which is expected to close in February 2022. Management outlines confidence in the growth trajectory of the two brands, expecting revenue to grow to $6B by 2026. Overall, Crocs posted solid Q4 results, with a similarly promising outlook for 2022. Despite the positive growth, CROX stock has been falling since November 2021, with today’s earnings only offering some brief respite before sellers took hold once again. 

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