Markets

Why Crocs Stock Jumped Wednesday

What happened

Shares of footwear company Crocs (NASDAQ: CROX) jumped on Wednesday, rising as much as 15.3%. But as of 12:33 p.m. EDT, the stock was up 13.1%.

The stock's gain follows the company's third-quarter update, which included better-than-expected top- and bottom-line results and an improved outlook from management for the company's full-year performance.

A chart showing a stock price moving higher.

Image source: Getty Images.

So what

Crocs reported a 19.8% year-over-year increase in revenue to $312.8 million. On average, analysts expected the retailer to report revenue of $302.1 million. The company's non-GAAP (adjusted) earnings per share were $0.57, up from $0.19 in the year-ago quarter and ahead of analysts' average forecast for $0.40.

"Our Americas business delivered exceptional growth, driven in part by another highly successful back to school season," said Crocs CEO Andrew Rees in the company's third-quarter earnings release.

Now what

Based on this strong performance and the company's progress so far in the current quarter, Crocs is raising its full-year revenue outlook. The company says it now expects 2019 revenue to increase 11% to 12% year over year. This is up from previous guidance for 9% to 11% growth.

The company's full-year outlook includes negative impacts of $28 million from currency changes and $20 million from store closures.

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Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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