Crocs Sales Keep Rising, Office Use Recovers from Holidays, Consumer Expectations Hold Steady
Crocs Sales Keep Rising
Crocs, the maker of foam footwear that plans to expand its distribution real estate this year, showed stronger sales for 2021 than the previous year despite supply-chain challenges.
The Broomfield, Connecticut-based company reported ahead of an investor presentation Tuesday that 2021 revenue could rise 67% higher than 2020 and reach a record level for Crocs. Crocs announced in December that it would pay $2.5 billion for casual footwear brand Hey Dude.
Crocs reported that it expects revenue to grow another 20% this year. Without factoring in Hey Dude, Crocs CEO Andrew Rees said in a statement the company expects to hit $5 billion in annual revenue by 2026.
Last April, Rees told investors the company’s capital investment for 2021 would include expanding the company’s distribution center next to Dayton International Airport in Dayton, Ohio.
Crocs had moved the operation from California in 2019. Expansion has taken the space to more than 1 million square feet with Riverside, Missouri-based NorthPoint Development doing the construction.
Rees said at the time that the company would be further expanding this year to handle growth.
Office Use Recovers from Holidays
Office use rose across major metropolitan areas around the country as the holiday season hit its final days, with some cities doing substantially better than others.
All of the major metropolitan areas tracked by Falls Church, Virginia-based security firm Kastle Systems saw office use increase in the week that ended Jan. 5. The New Year’s holiday tempered increases, though.
Kastle gathers anonymous employee data from workplaces where it provides access-control technology. While it is only a sampling of buildings by one security company, the data gives a peek into how employees and employers are responding to office use during the pandemic.
The biggest increases came in Texas, with the four largest cities showing double-digit gains. San Antonio rose to 43% from 18.9%, the Houston area rose 19.3 percentage points to 42.6%, the Dallas-Fort Worth area added 15 percentage points to hit 41.2% and Austin’s use grew 19.8 percentage points to 43.2%.
Washington, New York, San Francisco and Phoenix didn’t make it back above the 20% mark.
Consumer Expectations Hold Steady
For the first time in several months, consumer expectations on inflation didn’t rise.
The New York Federal Reserve Bank’s monthly survey found that consumers held steady on both short- and medium-term inflation. They expect inflation to be 6% for a year and 4% three years out.
Inflation uncertainty decreased for both short- and medium-terms from the record high the survey recorded in November.
Generally, consumers in the survey said they expected that food and gas prices will fall in the coming year but that home prices will continue to rise.
On the labor front, those earning less than $50,000 drove expectations higher for the earnings group this year.