Crocs is undervalued due to investor overreaction to HEYDUDE struggles and tariff uncertainty. The Crocs brand stands out in footwear for its unique product, pricing power, and loyal customer base, driving high margins. HEYDUDE's revenue is down, but brand relevance is rising; with new leadership, I expect a turnaround.
I reiterate my 'buy' rating on Crocs, with a price target of $139 per share, as recent trade deals with Vietnam and Indonesia should reduce tariff headwinds and improve cost visibility. In the previous quarter, management had withdrawn full-year guidance due to tariff uncertainty and projecting $130M in cost impact, dampening investor sentiment. With trade deals struck with Vietnam and Indonesia, along with the potential extension of a 90-day tariff pause with China, I expect management to lower its cost impact in Q2 earnings.
Crocs (CROX) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
27 Oct 2025 (In 3 months) Date | | - Cons. EPS | - EPS |
7 Aug 2025 (In 1 week) Date | | 4.03 Cons. EPS | - EPS |
31 Jul 2025 (In 3 days) Date | | 4.03 Cons. EPS | - EPS |
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27 Oct 2025 (In 3 months) Date | | - Cons. EPS | - EPS |
7 Aug 2025 (In 1 week) Date | | 4.03 Cons. EPS | - EPS |
31 Jul 2025 (In 3 days) Date | | 4.03 Cons. EPS | - EPS |
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Apparel - Footwear & Accessories Industry | Consumer Cyclical Sector | Andrew Rees CEO | XBER Exchange | US2270461096 ISIN |
US Country | 7,910 Employees | - Last Dividend | 15 Jun 2007 Last Split | - IPO Date |