Oct 29 (Reuters) - Crocs' shares surged about 27% on Thursday after the footwear maker raised its full-year forecasts, betting on a sustained recovery at its HEYDUDE brand and steady demand for its namesake clogs.
The upbeat outlook contrasted with a broader footwear sector that has been grappling with uneven consumer spending, elevated costs and heavy competition for shoppers, forcing many brands to rely on promotions to drive sales.
• The stock rose to $151.82, its highest in two years, and is set for the best day since 2018, if gains hold
• The company forecast 2026 revenue growth of about 3%, up from its prior forecast of 1% to 2%.
• Crocs said HEYDUDE's turnaround gained traction on faster-than-expected orders from retailers as inventory sold quickly, helping its wholesale revenue climb 14%
• "We feel very confident that even in an inflationary environment that we'll be able to protect our profitability as we go forward," CFO Patraic Reagan said, adding that multiple levers, including pricing actions, supply-chain and cost-saving measures, helped the company
• "We see weakness at the low-end consumer, and we see strength at the high-end consumer," CEO Andrew Rees said on the earnings call, describing the market as a "K-shaped economy"
• Despite those pressures, Crocs said its brands are benefiting from relatively affordably priced products, selling in the $50 to $60 range
(Reporting by Sanskriti Shekhar in Bengaluru; Editing by Shreya Biswas)