Why Crocs Stock Jumped to a 52-Week High Today
Shares of shoe company Crocs (NASDAQ: CROX) jumped to 52-week highs on Thursday after the company reported financial results for the fourth quarter of 2022. As of 10 a.m. ET today, Crocs stock was up 9% after rising about 14% earlier in the trading session.
For 2022, Crocs' revenue increased 54% year over year to $3.6 billion. Not all of this growth was organic. The company acquired the Heydude footwear brand early in the year, and it contributed almost $900 million to the top line from the time the acquisition was complete. However, the Crocs brand still had organic growth of almost 15%, which is strong.
The Heydude acquisition did lower Crocs' gross profit margin and operating profit margin. Gross margin dropped from 61.4% in 2021 to 52.3% in 2022; operating margin dropped from 29.5% to 23.9%. And investors don't like to see margins go down.
Source Fool.com
