Casual footwear maker Crocs (CROX) reports third-quarter earnings on Thursday, a month after announcing an accelerated buyback program. Crocs stock fell on Wednesday.
The clog maker reports as it seeks longer-term growth in nations like China and tries to broaden its footwear offerings, while navigating issues like the world’s mangled supply chain.
Estimates: Wall Street expects Crocs’ earnings to increase 99% from a year ago to $1.87, according to FactSet. Revenue is seen up 68% to $607 million.
Results: Due before the market open Thursday.
Crocs stock jumped last month after the company also announced its intent to buy an extra $500 million in shares by the end of the year, putting its buyback program at $1 billion for the year.
At its Investor Day presentation last month, CFO Anne Mehlman said Crocs was targeting more than $5 billion in sales by 2026. The company at that time said that China and other markets abroad, along with digital ordering and new products like sandals, would drive future growth.
Crocs stock reached a record high later in September. Shares have given up those gains since.
Crocs has grown more popular on partnerships with celebrities like Justin Bieber and DJ and producer Diplo. The company also sells attachable charms, called Jibbitz, that allow wearers to customize their appearance.
Crocs stock moved higher in July after its second-quarter earnings report. But as with other businesses, management raised the alarm on potential supply disruptions.
CEO Andrew Rees, during Crocs’ earnings call at that time, said: “We’re increasingly seeing Covid spikes in some of our primary manufacturing countries and are concerned about the short-term impact of potential factory closures and supply.”
Last month, Nike’s sales missed estimates after a pandemic-related manufacturing shutdown in Vietnam and other supply-chain difficulties.
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