Why Crocs Stock Jumped 19% This Week
Crocs (NASDAQ: CROX) investors beat a rising market as shares jumped 19% through Thursday trading compared to a 3% surge in the S&P 500, according to data provided by S&P Global Market Intelligence. That boost put the footwear specialist only slightly closer to positive territory, though. Shares remain lower by more than 50% so far in 2022.
The rally was powered by rising optimism that the company might not face a sharp demand pullback, or declining earnings, over the next few quarters.
There's no shortage of worries in the consumer apparel industry today. Inflation and slowing economic growth threaten to dampen demand for Crocs products, and a quick tilt in order volumes could leave the company saddled with too much inventory heading into the holiday shopping season.
Source Fool.com
