Latest news with #CROX
Yahoo
3 days ago
- Business
- Yahoo
Don't Sleep on Crocs: The Market's Comfiest Clog Is a Value Play
Crocs shows financial strength with expanding margins despite flat revenue, as its core brand grows internationally by 2.4%. HEYDUDE continues to struggle with a 9.8% revenue drop, creating uncertainty in Crocs' two-brand strategy. Potential tariffs on Chinese goods threaten Crocs' Asian manufacturing base, creating cost pressure that could erode its improved margins. 10 stocks we like better than Crocs › Crocs (NASDAQ: CROX) might carry the stigma of foam clogs and pop-culture punchlines, but the company's financials are nothing to laugh at. In Q1 2025, Crocs reported revenue of about $937 million, essentially flat year over year. On paper, that may not sound like much. But dig deeper, and you'll find a company expanding margins, growing profits, and navigating supply chain uncertainty with precision. The shoe stock is still down about 24% year over year, but with earnings growth and strategic resilience in hand, could Crocs be growing into a bigger size? Let's see how it measures up. Crocs doesn't sell just one brand, but two: the original Crocs and the newer HEYDUDE. We can think of the company as running a race with two different shoes. One is a proven performer; the other is still getting broken in. The stronger fit is the original Crocs brand, which has demonstrated consistent revenue growth over recent quarters. In Q1 2025, revenues increased by 2.4% year over year to $762 million, with international markets like China and Western Europe driving double-digit gains that offset softer U.S. wholesale demand. Lower product costs and a smarter customer mix for the brand helped lift adjusted gross margins for the enterprise to 57.8%, up 180 basis points from a year ago. In other words, the Crocs isn't just growing: It's getting more efficient with every sale. Operationally, then, the Crocs brand is moving with purpose. But the other shoe -- HEYDUDE -- is a bit more problematic. Acquired for $2.5 billion in 2022, HEYDUDE was meant to extend Crocs' dominance into casual footwear. Instead, it's become a source of uncertainty. Revenue fell 9.8% in Q1 to $176 million, with sales at department stores and third-party retailers falling 17.9%. At the same time, HEYDUDE saw some growth selling directly from its own website and stores (about 8.3%). That traction, however, hasn't been enough to steady the brand, nor convince investors that it's ready to carry its share of the weight. One of the biggest storylines from Q1 wasn't a number. It was the lack of one. Crocs pulled its full-year 2025 guidance, pointing to macro uncertainty and rising trade tensions. New U.S. tariffs on goods from China could drive up production costs, and with much of Crocs' manufacturing still based in Asia, the company is playing it safe. It's not ideal, but Crocs isn't the only one bracing for impact. Sketchers withdrew full-year guidance in April, Adidas refrained from raising its 2025 financial forecast despite strong first-quarter results, and Deckers warned that tariffs could cost up to $150 million in fiscal 2026. Retailers across the board are hedging toward visibility, which could make shoe stocks like Crocs more volatile for the next few quarters. The upside? Crocs has pricing power. Its products are distinct, popular, and affordable enough that customers won't likely balk at a modest price hike. That said, pricing power only matters if Crocs protects its margins, which is something investors should watch closely. Crocs has built momentum on culture as much as comfort. And, right now, the culture is still buying. TikTok trends, celebrity nods, and a shift toward more versatile casual wear have all worked in Crocs' favor. But fashion is fickle, and Crocs is playing a careful game. It ended Q1 with $166 million in cash and cut its debt by nearly $250 million. Capital spending, though, came in at just $15 million, a modest figure compared to peers. Crocs is still digesting the HEYDUDE acquisition, which limits how aggressively it can reinvest elsewhere. The brand is still trending, and the balance sheet looks stable. But in this industry, staying fashionable might demand a bit more risk than what Crocs is currently taking. True, not everyone's a fan of Crocs' aesthetic. But investors don't have to wear them to appreciate the numbers: rising earnings, solid margins, and a surprisingly low multiple. At the time of writing (May 26, 2025), Crocs trades at around 6.8 times trailing earnings, meaning investors are paying just under $7 for every $1 of earnings. That's pretty cheap by almost any standard, especially when compared against Sketchers (14.9), Deckers (20), and Adidas (38). To be sure, those companies are bigger, with broader product lines and a global scale to match. But that's exactly what makes Crocs' lower multiple so compelling. For a company that is still growing earnings, expanding margins, and riding a consumer wave, this kind of valuation suggests that investors may be overlooking its potential. The stock comes with scuff marks you shouldn't ignore: Tariffs could eat into profits, and HEYDUDE still needs to catch up. But if Crocs' fundamentals continue to hold up, today's low valuation may not last. For long-term investors who believe Crocs can stay relevant, now might be a smart time to buy in. Before you buy stock in Crocs, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Crocs wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Steven Porrello has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Deckers Outdoor. The Motley Fool recommends Crocs and Skechers U.s.a. The Motley Fool has a disclosure policy. Don't Sleep on Crocs: The Market's Comfiest Clog Is a Value Play was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Is Crocs (CROX) a Buy as Wall Street Analysts Look Optimistic?
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Crocs (CROX). Crocs currently has an average brokerage recommendation (ABR) of 1.54, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 13 brokerage firms. An ABR of 1.54 approximates between Strong Buy and Buy. Of the 13 recommendations that derive the current ABR, nine are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 69.2% and 7.7% of all recommendations. Check price target & stock forecast for Crocs here>>> While the ABR calls for buying Crocs, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential. Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements. Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision. In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures. The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them. In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research. Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns. Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements. In terms of earnings estimate revisions for Crocs, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $12.90. Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Crocs. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Crocs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Crocs, Inc. (CROX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-06-2025
- Business
- Yahoo
Crocs (CROX) Dips More Than Broader Market: What You Should Know
Crocs (CROX) closed at $97.49 in the latest trading session, marking a -5.95% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 1.13%. On the other hand, the Dow registered a loss of 1.79%, and the technology-centric Nasdaq decreased by 1.3%. Coming into today, shares of the footwear company had lost 11.61% in the past month. In that same time, the Consumer Discretionary sector gained 3.54%, while the S&P 500 gained 3.55%. Investors will be eagerly watching for the performance of Crocs in its upcoming earnings disclosure. The company is expected to report EPS of $4.06, up 1.25% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.14 billion, indicating a 2.91% growth compared to the corresponding quarter of the prior year. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.9 per share and revenue of $4.14 billion. These totals would mark changes of -2.05% and +0.84%, respectively, from last year. It's also important for investors to be aware of any recent modifications to analyst estimates for Crocs. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Crocs currently has a Zacks Rank of #3 (Hold). With respect to valuation, Crocs is currently being traded at a Forward P/E ratio of 8.04. This represents a discount compared to its industry average Forward P/E of 14.32. We can additionally observe that CROX currently boasts a PEG ratio of 2.6. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Textile - Apparel was holding an average PEG ratio of 2.02 at yesterday's closing price. The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 205, which puts it in the bottom 17% of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Crocs, Inc. (CROX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
10-06-2025
- Business
- Yahoo
CROX Q1 Earnings Call: Tariff Uncertainty Drives Guidance Withdrawal as Brand Investments Continue
Footwear company Crocs (NASDAQ:CROX) beat the market's revenue expectations in Q1 CY2025, with sales flat year on year at $937.3 million. Its non-GAAP EPS of $3 per share was 20.6% above analysts' consensus estimates. Is now the time to buy CROX? Find out in our full research report (it's free). Revenue: $937.3 million (flat year on year) Adjusted EPS: $3 vs analyst estimates of $2.49 (20.6% beat) Operating Margin: 23.8%, in line with the same quarter last year Constant Currency Revenue rose 1.4% year on year (6.9% in the same quarter last year) Market Capitalization: $5.69 billion Crocs' first quarter results were shaped by contrasting trends in its brand portfolio and proactive cost management amid industry volatility. CEO Andrew Rees pointed to double-digit international growth for the Crocs brand and stabilization in HEYDUDE's direct-to-consumer channel as key positives, while acknowledging that U.S. wholesale softness and deliberate inventory controls impacted topline growth. Rees highlighted the success of new product launches and digital campaigns, especially in Asia, as drivers of engagement. He also noted, 'We have identified approximately $50 million of additional savings to be realized in 2025 and we are continuing to evaluate potential actions for future savings.' Looking ahead, Crocs is operating without formal guidance due to unpredictable tariff dynamics and broader macro uncertainties. Management stressed that their sourcing mix and pricing strategies will be critical levers to offset potential cost pressures, particularly if tariffs escalate or remain volatile. CFO Susan Healy explained that the company is 'pursuing three primary levers to mitigate any potential impact of tariffs in the short and longer term: adjusting our sourcing mix into the U.S.; further reducing costs; and evaluating potential price increases.' Management also emphasized continued investment in marketing and digital channels to support both brands globally, but cautioned that consumer demand could soften if higher prices become widespread across the industry. Management attributed the quarter's performance to international expansion, product innovation, and digital marketing, while cost control actions addressed external pressures. International growth drives Crocs brand: Crocs brand delivered double-digit growth internationally, with China revenue up more than 30% year over year. New product launches and tailored marketing campaigns, such as the BAE relaunch with a global celebrity, boosted engagement and store traffic in key regions. HEYDUDE stabilizing in DTC: The HEYDUDE brand saw 8% growth in its direct-to-consumer channel, aided by refreshed product assortments and targeted influencer campaigns. While wholesale declined, management cited improved traction in digital and new retail formats as evidence of progress in stabilizing the brand. Cost savings initiatives enacted: The company identified $50 million in additional cost savings, focusing on SG&A (selling, general, and administrative expenses) reductions to offset macro and tariff-related headwinds. Management is actively evaluating further savings opportunities as conditions evolve. Social commerce and digital focus: Crocs continues to prioritize social-first marketing strategies, leveraging platforms like TikTok Shop, which contributed to the brand being ranked as the top footwear brand on the platform in the quarter. Digital campaigns and limited-edition collaborations drove high levels of new customer acquisition. Tariff and sourcing response: Facing new U.S. tariffs and related uncertainties, Crocs is rapidly adjusting its sourcing mix away from China and remains agile in shifting production to other regions. Management provided frameworks for potential tariff cost impacts and reiterated its preparedness to further diversify sourcing if needed. Management's outlook centers on navigating trade policy changes and maintaining brand momentum through strategic investments and cost actions. Tariff exposure and mitigation: Crocs' future profitability is heavily influenced by evolving tariff policies, especially for goods sourced from China and Vietnam. Management is diversifying its sourcing and indicated readiness to shift production within six to twelve months if higher tariffs persist, while also considering targeted price increases to protect margins. Sustained marketing and innovation: The company plans to maintain elevated marketing spend to reinforce consumer engagement, particularly in international markets and new product categories such as sandals. Continued investment in digital and influencer-driven campaigns is expected to support both brand relevance and customer acquisition. Inventory and wholesale discipline: Crocs and its retail partners are planning inventory and order volumes conservatively to avoid channel oversupply amid uncertain demand. Management is prioritizing brand health and is prepared to accept lower unit sales in the near term if necessary to preserve pricing and brand positioning. In upcoming quarters, the StockStory team will be watching (1) the effectiveness of Crocs' tariff mitigation strategies and rapid sourcing adjustments, (2) continued growth in international markets, especially China and Western Europe, and (3) the sustainability of HEYDUDE's direct-to-consumer recovery. The ability to balance cost control with ongoing investment in marketing and innovation will also be closely monitored as a marker of execution. Crocs currently trades at a forward P/E ratio of 8.1×. Should you double down or take your chips? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. 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Yahoo
09-06-2025
- Business
- Yahoo
Crocs, Inc. (CROX): A Bull Case Theory
We came across a bullish thesis on Crocs, Inc. (CROX) on The Finance Corner's Substack by Kostadin Ristovski. In this article, we will summarize the bulls' thesis on CROX. Crocs, Inc. (CROX)'s share was trading at $100.17 as of 5th June. CROX's trailing and forward P/E were 6.18 and 8.61 respectively according to Yahoo Finance. andersphoto / Crocs, founded in 2002, has carved out a unique space in the footwear industry with its polarizing design and proprietary Croslite material, offering comfort, lightness, and odor resistance. While its classic clogs and sandals are not inherently exciting, the company has driven engagement through personalization, celebrity partnerships, and Jibbitz accessories—turning its products into cult items especially among Gen Z. The brand saw an unexpected surge during the pandemic, as demand for comfortable, at-home footwear soared, propelling revenue and pushing its stock price from $11 to $180 in just over a year. Recognizing the temporary nature of this boom, management sought to diversify with the acquisition of HEYDUDE for $2.5 billion—a move initially criticized by the market. While HEYDUDE added lightweight, casual loafers to the portfolio and aimed for $1B in revenue by 2024, it fell short at $824M, validating some investor scepticism. However, CEO Andrew Rees has demonstrated strategic discipline, notably through an earlier rationalization that saw a 40% reduction in Crocs stores. Today, the company generates ~$900M in annual free cash flow, focusing on deleveraging and aggressive share buybacks, having reduced shares outstanding by 7% in 2024 alone. Still, questions persist: Is Crocs a lasting brand or a fashion fad? Bear, base, and bull valuation cases suggest fair values between $76 and $143 per share, hinging on this very question. Encouragingly, international markets grew 42% over two years while North America stagnated, and global manufacturing diversification gives Crocs strategic flexibility. At a $5.5B market cap, the company offers attractive upside—if it avoids missteps and remains culturally relevant. Previously, we covered a on Crocs (CROX) by Taylor Nichols, which aligns with Kostadin Ristovski's take. Since then, the stock has seen an 11% appreciation in price. Both highlight strong cash flow, high margins, and smart capital allocation. Nichols emphasizes valuation upside and financial strength, while Ristovski focuses on brand relevance and international growth. Together, they make a compelling bull case from both quantitative and qualitative angles. Crocs, Inc. (CROX) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held CROX at the end of the first quarter which was 41 in the previous quarter. While we acknowledge the risk and potential of CROX as an investment,our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
