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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 In the previous quarter, management had withdrawn full-year guidance due to tariff uncertainty and projecting $130M in cost impact, dampening investor sentiment.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.
CROX is rebooting HEYDUDE with fresh styles, influencer buzz and tighter ops to revive U.S. growth and regain market traction.
In the most recent trading session, Crocs (CROX) closed at $99.72, indicating a -2.24% shift from the previous trading day.
Crocs (CROX) closed the most recent trading day at $104.75, moving 1.67% from the previous trading session.
Lorraine Hutchinson, Bank of America, joins 'Fast Money' to talk the impact of the Vietnam tariff announcement on retailers.
Crocs is a top pick due to strong fundamentals, best-in-class profitability, and a deeply discounted stock price despite robust growth. The company is gaining market share globally, expanding direct-to-consumer channels, and maintaining pricing power even as it faces challenges with the HEYDUDE brand. Crocs generates significant free cash flow, aggressively repurchases shares, and is paying down debt, all while outperforming peers in profitability metrics.
‘We think Western Europe, China and India will continue to be the key growth drivers' for Crocs, the analysts said.
Humans have been wearing shoes for thousands of years. Today, the quality and type of shoes available for purchase are staggering, with thousands of brands competing for consumer dollars.