Factors Likely To Decide Fate Of Crocs (CROX) In Q4 Earnings

Crocs, Inc. (CROX - Free Report) is scheduled to release fourth-quarter 2020 results on Feb 23. This leading footwear company is likely to have witnessed revenue and earnings growth in the to-be-reported quarter.

The Zacks Consensus Estimate for fourth-quarter earnings has moved up 6.5% to 82 cents in the past 30 days. Moreover, this suggests a substantial increase from 12 cents reported in the year-ago quarter. Further, the consensus mark for revenues is pegged at $408.3 million, indicating growth of 14.5% from the figure reported in the year-ago quarter.

In the last reported quarter, the company delivered an earnings surprise of 38.2%. Moreover, it delivered an earnings surprise of 191.7%, on average, in the trailing four quarters.

Crocs, Inc. Price and EPS Surprise

Crocs, Inc. Price and EPS Surprise

Crocs, Inc. price-eps-surprise | Crocs, Inc. Quote

Factors at Play

Crocs remains focused on four key growth drivers — Clogs, Sandals, Jibbitz and Visible Comfort technology. Management believes that demand for these products will remain robust in the fourth quarter, which is likely to get reflected in the upcoming results. Also, the Americas and EMEA regions have been performing well and are expected to have delivered sturdy results in the fourth quarter as well.

Further, strong online demand, driven by expanded digital and omnichannel capabilities, bodes well. Such upsides are likely to contribute to the top line in the quarter under review.

Recently, the company raised view for the fourth quarter and 2020. Management projected fourth-quarter 2020 revenues to increase nearly 55% to $407-$410 million. Also, it envisioned 2020 revenues of $1,381-$1,384 million, indicating growth of more than 12%.

Moreover, the company’s gross margin is likely to have benefited from a favorable product mix, elevated prices of selective products and fewer promotional activities in the fourth quarter. This along with a lower SG&A expense rate is likely to have resulted in operating margin leverage.

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