Shares of shoemaker Crocs rallied 27 percent Thursday after CEO Andrew Rees said strong clog sales helped the company post a surprise profit in the third quarter.
“Clogs grew in every region. Our North American results were particularly strong as interest in our Classic Clog continued to climb,” Rees said Thursday. “It’s a staple for every day and on top of that, it was embraced by high school and college-aged students for back-to-school wear. This growing demand, which exceeded our expectations, gives us confidence going into spring summer of 2019.”
Clog revenue, which represents about half of the company’s total, grew by 12.7 percent, exceeding the expectations of company executives and Wall Street analysts. Crocs posted earnings per share of 7 cents against expectations of a loss per share of 2 cents, according to analysts polled by Refinitiv.
Third-quarter revenue topped $261.1 million versus estimates of $246.4 million.