What Happened:

Shares of footwear company Crocs (NASDAQ:CROX) jumped 10.1% in the morning session after the company reported, first quarter results that blew past analysts' constant currency revenue and EPS expectations, driven by outperformance in its flagship Crocs and HEYDUDE brands. On the other hand, its full-year revenue guidance fell slightly short of Wall Street's estimates, while its earnings outlook was in line. Overall, we think this was still a really good quarter that should please shareholders.

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What is the market telling us:

Crocs's shares are quite volatile and over the last year have had 17 moves greater than 5%. But moves this big are very rare even for Crocs and that is indicating to us that this news had a significant impact on the market's perception of the business. 

The biggest move we wrote about over the last year was 3 months ago, when the stock gained 12.4% on the news that the company reported fourth-quarter results that exceeded analysts' revenue and EPS expectations, driven by a better-than-expected performance at both its Crocs and HEYDUDE brands. Its full-year 2024 revenue and earnings guidance exceeded Wall Street's estimates despite next quarter's earnings guidance coming in soft. For 2024, the company expects its Crocs brand to grow revenue by 5% year on year and for its HEYDUDE brand to be flat to slightly up - an improvement from the 18.5% decrease HEYDUDE posted this quarter. Zooming out, this was still a decent, albeit mixed, quarter, showing that the company is staying on track.

Crocs is up 44.2% since the beginning of the year, and at $135.17 per share it is trading close to its 52-week high of $145.75 from March 2024. Investors who bought $1,000 worth of Crocs's shares 5 years ago would now be looking at an investment worth $5,019.

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