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Skechers (SKX) and Crocs (CROX) both easily beat second quarter profit guidance and gave strong indications on Thursday. SKX stock is on the verge of breaking a buy point and CROX stock has hit a new high.
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Skechers Earnings
Estimates: Wall Street sees Skechers profit 52 cents per share from a loss of 44 cents per share a year ago, as revenues skyrocket 104% to $ 1.49 billion.
Results: 88-cent EPS on $ 1.66 billion in revenue. Domestic wholesaling increased by 205.7%, and international wholesaling by 94.8%. Direct sales to consumers climbed 137.8%.
Outlook: Q3 EPS of 70-75 cents, above consensus for 61 cents, on revenue of $ 1.6 billion-$ 1.65 billion, better than views of $ 1.51 billion . Annual EPS of $ 2.55 to $ 2.65, higher than the consensus of $ 2.09, on revenue of $ 6.15 to $ 6.25 billion, exceeding $ 5.93 billion.
Store: Shares jumped 6.6% to 54.60 after closing up 1.9% to 151.21 on Thursday. SKX stock is now positioned to erase a buy point of 51.58 from a double bottom base on a weekly chart.
Crocs Gains
Estimates: AAnalysts expected Crocs earnings per share to rise 56% to $ 1.58. They see sales jump 68% to $ 557 million.
Results: Crocs earnings jumped 121% to $ 2.23 per share. Revenue increased 93% to $ 640.8 million, the fourth consecutive quarter of accelerated growth.
Outlook: The shoe maker sees third-quarter sales increase 60-70%, with annual sales rising 60-65%. Both are well above consensus.
The Colorado-based foam rubber clog maker has a cult following among Gen Z shoppers. Crocs has teamed up with pop culture favorites like Justin Bieber and Grammy-winning DJ and producer Diplo, among others.
Digital sales have fueled Crocs’ revenue in recent quarters, as customers have turned to online shopping during the pandemic.
Store: Shares jumped 10% to close at 131.93 on the stock market today. CROX stock broke through a buy point of 110.01 from a flat base on June 23, but is now extended, according to MarketSmith’s chart analysis. This buying area peaked at 115.51.
But CROX stock found support on the 10 week line, which also offered a buy point at around 109.50 with a buy range extending 10% to 120.45.
The Relative Strength Line, which tracks performance against the S&P 500 Index, is trending higher, approaching its all-time high. Its RS rating is 97 out of 99 possible. Its EPS rating is 99 because it has posted four consecutive quarters of earnings growth.
With a composite rating of 99, Crocs ranks # 1 in IBD’s apparel and related footwear manufacturing group, which itself ranks 31st out of 197 groups.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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