Crocs (CROX) easily beat second-quarter earnings forecasts early Thursday, with sales growth accelerating once again. Skechers (SKX) reports results after the close. CROX stock rose before the open, signaling a new high.
Estimates: Analysts expected Crocs earnings per share rose 56% to $1.58. They see sales jumping 68% to $557 million.
Results: Crocs earnings shot up 121% to $2.23 a share. Revenue swelled 93% to $640.8 million, the fourth straight quarter of accelerating growth.
Outlook: The footwear maker sees Q3 revenue up 60%-70%, with full-year sales up 60%-65%. Both are well above consensus.
The Colorado-based maker of foamy rubber clogs has a cult-like following among Gen Z shoppers. Crocs has partnered with pop culture favorites like Justin Bieber and Grammy-winning DJ and producer Diplo among others.
Digital sales have fueled Crocs’ revenue in recent quarters, as customers turned to online shopping during the pandemic.
Stock: Shares rose 3.9% before the open on the stock market today. CROX stock broke out past a 110.01 buy point from a flat base June 23 but is now extended, according to MarketSmith chart analysis. That buy zone topped out at 115.51.
But CROX stock found support at the 10-week line, which also offered a buy point at about 109.50 with a buy range extending 10% to 120.45.
The relative strength line, which tracks performance vs. the S&P 500 index, is trending upward, approaching its all-time high. Its RS Rating is 97 out of a possible 99. Its EPS Rating is a top-notch 99, as it’s posted four straight quarters of earnings growth.
With a Composite Rating of 99, Crocs ranks No. 1 in IBD’s apparel-shoes & related manufacturing group, which itself ranks 31st among 197 groups.
Estimates: Wall Street sees Skechers swinging to a profit of 52 cents a shares from a year-ago loss of 44 cents a share, as revenue soars 104% to $1.49 billion.
Results: Check back after the close.
Stock: Shares were not yet active early Thursday. SKX stock is closing in on a 51.58 buy point from a double-bottom base on a weekly chart.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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