Profile
Sector:
Consumer CyclicalIndustry:
Footwear & AccessoriesCountry:
United StatesIPO:
08 February 2006Website:
http://www.crocs.comNext earnings report:
14 February 2025Last dividends:
N/ANext dividends:
N/APrice
after hours | Wed, 20 Nov 2024 00:56:55 GMTDividend
Analysts recommendations
Institutional Ownership
CROX Latest News
CROX's Q3 results reflect continued strength. Expectations for HEYDUDE and a subdued consumer environment in the United States and China hurt its guidance.
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Crocs has been oversold at current levels, as the market over-reacts to the softer FQ4'24 guidance and the stock tanking by -21% over two days. If anything, HEYDUDE has shown sequential sales growth since FQ1'24, with FY2025 likely to bring forth an easier YoY comparison. We also believe that the domestic demand headwinds may be well balanced by the double digit growths observed in the international region, with the pain likely to be temporal.
The stock got slammed after management lowered its guidance.
I maintain my “buy” rating for Crocs stock, while reducing my price target to $132, as the management reduced its FY24 revenue guidance, despite outperforming in its Q3 earnings report. The downward revision in FY24 revenue guidance is primarily driven by its HEYDUDE segment, which is taking longer than expected to demonstrate a material revival. However, underlying fundamentals of HEYDUDE are improving, with expanding gross margins and ASP's. Plus, easier comps in FY25 should act as a tailwind too.
Crocs stock is undervalued despite strong brand growth, presenting a potential buying opportunity. HEYDUDE's struggles impact results, yet CROX's core brand momentum remains solid. Crocs' cash flow and buybacks support long-term shareholder value despite market concerns.
Crocs' stock dropped nearly 20% after 3Q24 results, driven by declining operating margins and a delayed Hey Dude turnaround, despite international growth. CROX trades at a low P/E of 9x FY24 earnings because of concerns about margin sustainability and profitability. The Company's explosive post-pandemic growth now faces fashion risk, and Hey Dude's underperformance adds uncertainty to future revenue and margin stability.
Shares of Crocs plunged 19% due to HEYDUDE's ongoing struggles, but I see this as a buying opportunity given Crocs' overall investment case. Despite HEYDUDE's disappointing performance, Crocs' profitability remains robust, with expanding gross margins and record adjusted EPS expected for the year. Crocs' healthy free cash flow profile and balanced capital allocation plan, including debt repayment and share buybacks, improve the stock's appeal.
The heavy selling pressure might have exhausted for Crocs (CROX) as it is technically in oversold territory now. In addition to this technical measure, strong agreement among Wall Street analysts in revising earnings estimates higher indicates that the stock is ripe for a trend reversal.
The Crocs brand is growing, but Heydude is a drag on results.
What type of business is Crocs?
Crocs, Inc. is a manufacturer of practical footwear made from the innovative polymer material Croslite. In addition to footwear, Crocs also produces clothing and accessories. The company sells its products in approximately 85 countries through wholesalers and distributors, as well as through stores and websites. As of December 31, 2019, it had 109 retail stores; 65 kiosks and stores; 193 outlet stores; and 13 websites. The company was founded in 1999 and is headquartered in Niwot, Colorado.
What sector is Crocs in?
Crocs is in the Consumer Cyclical sector
What industry is Crocs in?
Crocs is in the Footwear & Accessories industry
What country is Crocs from?
Crocs is headquartered in United States
When did Crocs go public?
Crocs initial public offering (IPO) was on 08 February 2006
What is Crocs website?
https://www.crocs.com
Is Crocs in the S&P 500?
No, Crocs is not included in the S&P 500 index
Is Crocs in the NASDAQ 100?
No, Crocs is not included in the NASDAQ 100 index
Is Crocs in the Dow Jones?
No, Crocs is not included in the Dow Jones index
When was Crocs the previous earnings report?
No data
When does Crocs earnings report?
The next expected earnings date for Crocs is 14 February 2025