Crocs expects record $1.38 billion sales in 2020 with consumers seeking comfort during pandemic

Crocs Inc. expects to have posted record sales of $1.38 billion in 2020, up by 12 percent on-year and raising from its previous forecast of about 5 to 7 percent growth, with the pandemic making its foam clog products a hit with consumers.

The company also anticipates sales growth of 20 to 25 percent in 2021.

Crocs also forecasted fourth-quarter revenue to have increased about 55 percent on-year to between $407 and $410 million, up from its previous estimated increase between 20 to 30 percent.

The news boosted Crocs shares by 12 percent to $74.91 on the Nasdaq.

Crocs CEO Andrew Rees described their brand momentum as exceptional while saying they anticipate another record year in 2021.

According to Rees, they delivered the strongest revenue in Crocs' history amid the pandemic in 2020.

Rees attributed its strong sales to consumers' overwhelming need for comfort during the pandemic, noting that the clogs are also easy to clean and sanitize.

Younger, predominantly female consumers gravitated to Crocs during the pandemic, broadening to younger male consumers as the year progressed.

Quirky collaborations likely helped attract millennials and Gen Z'ers to the clogs.

In 2020, Crocs collaborated with such artists as Post Malone, Justin Bieber, and Bad Bunny and fast-food chain KFC on special editions.