For Crocs, a 'Bittersweet Moment' Amid the PandemicNewser — Jenn Gidman
For many retailers, 2020 was a catastrophe due to the coronavirus pandemic. For the Crocs footwear brand, it was a "bittersweet moment," per CNN Business. The sweet part: Last year was a record one in terms of sales, and the company on Monday increased its Q4 year-over-year revenue predictions, with an expected jump of 55%, or between $407 million and $410 million.
The company had earlier predicted a 20% to 30% increase. Meanwhile, the company had expected to see 5% to 7% sales growth in 2020, compared to the previous year—but it now says it expects to register a 12% increase once the final numbers are in.
"Amidst a global pandemic in 2020, we will deliver the strongest revenue in Crocs' history," company CEO Andrew Rees says in a statement. "Our brand momentum is exceptional, and we anticipate another record year in 2021."
The company forecasts it will see a 20% to 25% sales spike this year.
Shares jumped around 11% after the news. So what was behind the significant boost for a brand that CNBC says was "once shunned by the fashion industry"? "Consumer casualization," Rees says, noting that people were simply looking for comforting (and comfortable) footwear during these trying times.
He adds that Crocs are also simple to clean and sanitize—important during a pandemic—and that younger customers were drawn into the brand by stars pushing the clogs, including Post Malone and Justin Bieber.
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This article originally appeared on Newser: For Crocs, a 'Bittersweet Moment' Amid the Pandemic