Today's Top Stock Pick: Crocs, Inc. (NASDAQ:CROX)

Crocs, Inc. (NASDAQ:CROX) is a renowned footwear company, celebrated for its distinctive and comfortable clogs. Operating within the competitive fashion industry, Crocs stands out against rivals such as Skechers and Nike through its focus on innovative designs and direct-to-consumer sales strategies, which have been pivotal to its growth and market presence.

On October 30, 2025, Crocs reported an earnings per share (EPS) of $2.64, surpassing the estimated $2.36. Despite this, the EPS was down from $4.23 the previous year. Crocs' revenue for the quarter was approximately $996.3 million, exceeding the estimated $960.1 million. However, this figure represents a 6.2% decline from the previous year, primarily due to a significant 14.7% drop in wholesale revenues. Despite this, direct-to-consumer sales increased by 1.6%, highlighting the company's strategic focus on this channel.

The company's performance was bolstered by effective cost controls and strategic brand execution. Crocs is targeting $100 million in cost savings for 2026, in addition to $50 million in 2025. This demonstrates its commitment to operational efficiency and leveraging its brand strength to maintain profitability.

Crocs' financial metrics offer insights into its market valuation. With a price-to-earnings (P/E) ratio of approximately 24.95 and a price-to-sales ratio of about 1.11, the market shows confidence in Crocs' earnings and sales potential. The company's debt-to-equity ratio of 0.28 indicates a relatively low level of debt, suggesting financial stability.

• Jay Sole from UBS has lowered the price target for Crocs, Inc. (NASDAQ:CROX) to $90, indicating a potential increase of about 19.62%.
• Q2 financial results were in line with expectations, but Q3 guidance suggests a sharp decline in sales and earnings.
• The stock has shown significant volatility, with a year's high of $151.13 and a low of $73.76, reflecting market challenges.

Crocs, Inc. (NASDAQ:CROX), a leader in the casual footwear market, is currently navigating through a period of uncertainty. The company, known for its distinctive clogs, competes with other footwear giants like Skechers and Birkenstock. Despite its strong market presence, recent developments have raised concerns among investors.

Analyst Jay Sole from UBS recently adjusted the price target for Crocs to $90, down from an earlier target of $110, as reported by TheFly. This new target suggests a potential upside of approximately 19.62% from its current trading price of $75.24. The revision follows Crocs' Q2 financial performance, which, while nearly meeting Wall Street's expectations, did not alleviate worries about the future.

The company's guidance for the upcoming third quarter has particularly dampened investor sentiment. Management anticipates a significant downturn in both sales and earnings, attributing this to a broader consumer weakness. This outlook has played a crucial role in the revised price target by UBS.

Despite a slight increase in its stock price by 1.14% or $0.85, Crocs has experienced notable market fluctuations. The stock's trading range today spanned from a low of $73.76 to a high of $77.83. Over the past year, it has seen a high of $151.13 and a low of $73.76, highlighting the volatility that has characterized its market performance.

With a market capitalization of around $4.1 billion and a trading volume of 6,469,793 shares on the NASDAQ exchange, Crocs' brand equity and market position are under scrutiny. The company's historically volatile performance, coupled with the recent guidance for Q3, may continue to influence investor sentiment and the stock's future trajectory.

Crocs (NASDAQ:CROX) stock plunged 25% on Thursday after the footwear company issued a disappointing forecast for the third quarter, overshadowing solid second-quarter results.

Adjusted EPS for Q2 came in at $4.23, beating the Bloomberg consensus of $4.00 and improving from $4.01 a year ago. Revenue increased 3.4% year-over-year to $1.15 billion, slightly ahead of analyst expectations.

Despite the beat, Crocs guided for Q3 revenue to fall between 9% and 11% from the same period last year, citing ongoing global trade uncertainties and related consumer pressures.

The company expects Q3 adjusted operating margin to range between 18% and 19%, factoring in a roughly 170 basis point hit from current and expected tariffs.

Q2 adjusted gross margin rose to 61.7%, up from 61.4% and above the 60.6% estimate. However, operating margin declined to 26.9% from 29.3% year-over-year, though it still exceeded analyst expectations.

Adjusted operating income fell 5% year-over-year to $309.5 million, while net income declined 2.5% to $237.5 million. The company withheld full-year guidance amid continued market volatility.

Crocs (NASDAQ:CROX) delivered a strong first-quarter performance, beating Wall Street expectations on both earnings and revenue, with shares rising over 10% intra-day today.

The company reported adjusted earnings of $3.00 per share, well ahead of the $2.49 analyst forecast. Revenue climbed to $937 million, topping the $907.9 million consensus and rising 1.4% year-over-year on a constant currency basis.

Gross margin expanded to 57.8%, up from 56.0% a year earlier, reflecting improved product mix and pricing strategies. Direct-to-consumer revenue saw 3.5% growth, while wholesale remained flat compared to the prior year.

Despite the solid results, Crocs withdrew its full-year 2025 guidance, citing uncertainty surrounding global trade policy shifts and their potential impact on consumer behavior. CEO Andrew Rees acknowledged April’s strong business performance but emphasized the difficulty of forecasting demand under current conditions.

While operationally sound, the company’s decision to pause forward-looking estimates reflects a broader caution across the retail sector amid shifting economic and geopolitical dynamics.

Crocs (NASDAQ:CROX) delivered a strong first-quarter performance, beating Wall Street expectations on both earnings and revenue, with shares rising over 10% intra-day today.

The company reported adjusted earnings of $3.00 per share, well ahead of the $2.49 analyst forecast. Revenue climbed to $937 million, topping the $907.9 million consensus and rising 1.4% year-over-year on a constant currency basis.

Gross margin expanded to 57.8%, up from 56.0% a year earlier, reflecting improved product mix and pricing strategies. Direct-to-consumer revenue saw 3.5% growth, while wholesale remained flat compared to the prior year.

Despite the solid results, Crocs withdrew its full-year 2025 guidance, citing uncertainty surrounding global trade policy shifts and their potential impact on consumer behavior. CEO Andrew Rees acknowledged April’s strong business performance but emphasized the difficulty of forecasting demand under current conditions.

While operationally sound, the company’s decision to pause forward-looking estimates reflects a broader caution across the retail sector amid shifting economic and geopolitical dynamics.

Crocs (NASDAQ:CROX) surged more than 18% intra-day today after delivering better-than-expected fourth-quarter earnings, driven by strong demand in North America and accelerating growth in China.

For the quarter, adjusted net income declined 7% year-over-year to $146.2 million, but still topped analyst expectations of $133.7 million. Earnings per share came in at $2.52, comfortably surpassing Wall Street’s forecast of $2.26.

Revenue grew 3.1% year-over-year to $989.8 million, beating analysts’ projections of $962 million. Growth was driven by a 4% increase in the Crocs brand, while subsidiary Heydude outperformed expectations, fueled by strong direct-to-consumer sales.

Despite the strong Q4 performance, Crocs issued a cautious outlook for Q1 2025, expecting revenues to decline by approximately 3.5%, implying sales of around $906.13 million. The company cited a $19 million headwind from unfavorable foreign exchange movements and potential impacts from U.S. trade policies.

For full-year 2025, Crocs projects revenue growth of 2% to 2.5%, translating to a range of $4.18 billion to $4.20 billion, slightly above the $4.17 billion consensus estimate.

Crocs (NASDAQ:CROX) surged more than 18% intra-day today after delivering better-than-expected fourth-quarter earnings, driven by strong demand in North America and accelerating growth in China.

For the quarter, adjusted net income declined 7% year-over-year to $146.2 million, but still topped analyst expectations of $133.7 million. Earnings per share came in at $2.52, comfortably surpassing Wall Street’s forecast of $2.26.

Revenue grew 3.1% year-over-year to $989.8 million, beating analysts’ projections of $962 million. Growth was driven by a 4% increase in the Crocs brand, while subsidiary Heydude outperformed expectations, fueled by strong direct-to-consumer sales.

Despite the strong Q4 performance, Crocs issued a cautious outlook for Q1 2025, expecting revenues to decline by approximately 3.5%, implying sales of around $906.13 million. The company cited a $19 million headwind from unfavorable foreign exchange movements and potential impacts from U.S. trade policies.

For full-year 2025, Crocs projects revenue growth of 2% to 2.5%, translating to a range of $4.18 billion to $4.20 billion, slightly above the $4.17 billion consensus estimate.