What Happened?
Shares of footwear company Crocs (NASDAQ: CROX) jumped 10.8% in the afternoon session after the company reported impressive first quarter 2025 results, which beat analysts' constant currency revenue, EPS, and EBITDA estimates.
The big story this time was overseas growth for the Crocs brand, which helped make up for weaker results at home. Still, the company pulled its yearly forecast, citing trade worries and shaky demand. Zooming out, we think this was still a decent quarter.
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What The Market Is Telling Us
Crocs’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. But moves this big are rare even for Crocs and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 16 days ago when the stock gained 5.8% on the news that investor sentiment improved on renewed optimism that the US-China trade conflict might be nearing a resolution. According to reports, Treasury Secretary Scott Bessent reinforced this positive outlook by describing the trade war as "unsustainable," and emphasized that a potential agreement between the two economic powers "was possible." His comments signaled to markets that both sides might be motivated to seek common ground, raising expectations for reduced tariffs and more stability across markets.
Crocs is up 1.4% since the beginning of the year, but at $111.57 per share, it is still trading 30.1% below its 52-week high of $159.68 from June 2024. Investors who bought $1,000 worth of Crocs’s shares 5 years ago would now be looking at an investment worth $4,461.
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