Crocs (NASDAQ:CROX) share price doubled last year. The company’s stocks surged 68% in the last six months, up 97% in the last twelve months. CROX stock price has the 52-week trading range of $5.93-$14.47. With the market capitalization of $938 million, the stock is currently trading around $13.21 per share.

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The latest rally in its stock price was the outcome of higher-than-expected guidance for the fourth quarter. The retailer expects its Q4 sales to stand in the range of $195M to $198M, compared to the $180M to $190M range previously.

Investors are pleased with the company’s strategy of improving margins even with its strong investments in growth opportunities.

It has generated year over year, a gross margin growth of 100 basis points in the latest quarter. Crox now anticipates gross margin of 45% in the final quarter, vs. the previous estimate of 43% and 42% in a year ago.

On the back of improving margins, its earnings are growing at a higher rate than its revenues. In the latest quarter, Crocs’ net income from operations was $2.7 million, a growth of $3.9 million from loss of $1.2 million in the last year’s third quarter.

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Andrew Rees, President and Chief Executive Officer, said, “The perception of the brand continued to rise, with results from our latest annual brand survey showing double-digit increases in brand desirability, relevance and consideration compared to last year. Looking ahead, we are confident that further operational improvements and a disciplined approach to expense management will facilitate a return to double-digit EBIT margins.”

Crocs management continues implementing its strategic and operational objectives. The company plans to annually eliminate around $75 million and $85 million of SG&A expenses in order to provide additional support of $30 million to $35 million to the net income in 2019.

Moreover, the company is focusing on a diverse array of products, specifically sandals, clogs, flips and slides marketing. Crocs management also gives significant importance to its distribution channels, including improving its e-commerce and wholesale.

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