Crocs Inc. (CROX) stock prices were down by 4.54% as of the market closing on October 21st 2021. This brought the price per share down to USD$135.93. Subsequent premarket fluctuations saw the stock surge by 12.62%, bringing it up to USD$153.08.
CROX Stock Resists Headwinds
The third quarter of fiscal 2021 saw CROX stock report its business being adversely impacted by Vietnamese factory closures. These effects were further compounded by widespread disruptions in the global supply chain. In an effort to mitigate the impact of these disruptions, the company has taken swift action to shift production, improve factory throughput, leverage air freight, and strategically allocate units. The company is confident in its ability to deliver upon short and long term goals despite these challenging headwinds.
Revenue Breakdown
Revenues for the third quarter of fiscal 2021 came out to USD$625.9 million. This represents a 73% increase from the revenues reported for the prior year quarter, or a 72.2% increase on a constant currency basis. Revenue growth improved across all of the company’s regions: with North and South America exhibiting an increase of 94.5%; Asia Pacific being up 21.2%; and Europe, Middle East, and Africa representing a year over year increase of 42.8% on a constant currency basis as compared to the prior year quarter. Digital sales were up by 68.9%, representing 36.8% of revenues for the quarter. This is compared to 37.7% for the 2020 year quarter and 32.2% for the 2019 quarter. All regions where the company operates exhibited double digit growth within the digital segment.
Solid Liquidity Position
CROX stock reported a solid liquidity position for the third quarter of fiscal 2021. The company reported cash and cash equivalents in the amount of USD$436.6 million as of September 30th 2021. This is comparable to the USD$135.8 million reported as of December 31st 2020. Inventories were up to USD$212.5 million as of September 30th 2021, as compared to the USD$175.1 million reported as of December 31st 2020.
Future Outlook for CROX Stock
CROX stock is poised to capitalize on the opportunities afforded to it as a result of the momentum it generated over the course of the current fiscal year. The company is keen to maintain its trajectory of success in a bid to usher in unprecedented growth. Current and potential investors are hopeful that management will be able to leverage the resources at their disposal. This is hoped to facilitate consistent and organic increases in shareholder value over the long term.
