Shares of Crocs lost more than a quarter of their value Thursday after the maker of brightly colored clogs said it expects tariffs to hurt current-quarter results.
Crocs, Inc. (NASDAQ:CROX ) Q2 2025 Earnings Conference Call August 7, 2025 8:30 AM ET Company Participants Andrew Rees - CEO, Director & Interim President for HEYDUDE Brand Erinn Elisabeth Murphy - Senior VP of Investor Relations & Corporate Strategy Susan L. Healy - Executive VP & CFO Conference Call Participants Adrienne Eugenia Yih-Tennant - Barclays Bank PLC Anna A.
Although the revenue and EPS for Crocs (CROX) give a sense of how its business performed in the quarter ended June 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Crocs, Inc. (NASDAQ:CROX) shares plunged almost 25% after the shoemaker issued weak guidance for the third quarter. The company said it expects revenue to be down 9% to 11% year-over-year, attributed to continued uncertainty regarding global trade policy and its related pressure on consumers.
The company beat earnings expectations but issued disappointing third-quarter guidance.
Crocs (CROX) came out with quarterly earnings of $4.23 per share, beating the Zacks Consensus Estimate of $4.01 per share. This compares to earnings of $4.01 per share a year ago.
Crocs (CROX) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
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In the latest trading session, Crocs (CROX) closed at $105.64, marking a -1.04% move from the previous day.
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 In the previous quarter, management had withdrawn full-year guidance due to tariff uncertainty and projecting $130M in cost impact, dampening investor sentiment.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.