Guggenheim Starts Crocs Coverage at Buy, Targets $182 on Strong Brand Presence in Casual Footwear
Guggenheim analysts initiated coverage on Crocs (NASDAQ:CROX) with a Buy rating and set a price target of $182 on the stock, attributing the brand's staying power and high global brand awareness to its success. The analysts see Crocs as well-positioned in the $160 billion casual footwear market, with a strong financial outlook driven by robust profitability—Crocs maintains industry-leading gross margins over 58% and operating margins above 25%.
For fiscal 2024 and 2025, the analysts forecast EPS of $12.90 and $14.00, respectively, and anticipate 2024 revenue of $4.12 billion. The analysts highlight Crocs' estimated 9% free cash flow yield, which they consider undervalued, and point to the stock’s attractive valuation at just 9.8x 2025 EPS—placing it among the lowest in the footwear sector. Crocs' debt leverage ratio is within its target range of 1-1.5x, which, paired with its repurchase program, offers potential EPS accretion of about $3 per share.
The analysts emphasized growth opportunities for both Crocs and the HEYDUDE brand, especially in international markets where Crocs holds competitive positioning in South Korea and see expansion potential in China, which currently accounts for only 4% of revenue. Despite consumer spending uncertainties in North America, the analysts expressed confidence in CEO Andrew Rees' leadership to capitalize on Crocs' value-driven strategy, functional design, and personalized offerings to achieve growth in a challenging market environment.
| Symbol | Price | %chg |
|---|---|---|
| NKE.BA | 6260 | 0.8 |
| 7936.T | 3570 | 0.78 |
| 241590.KS | 7490 | -1.34 |
| 194370.KS | 11600 | -2.16 |
Crocs Shares Rise 10% on Q1 Beat, Pulls 2025 Forecast Amid Global Trade Uncertainty
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 Shares Rise 10% on Q1 Beat, Pulls 2025 Forecast Amid Global Trade Uncertainty
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 Jumps 18% on Strong Q4 Results, But 2025 Outlook Signals Moderation
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 Jumps 18% on Strong Q4 Results, But 2025 Outlook Signals Moderation
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, Inc. (NASDAQ:CROX) Surpasses Market Expectations with Strong Q3 Earnings
- Earnings Per Share (EPS) of $3.36, beating the estimated $3.13.
- Revenue reached approximately $1.06 billion, surpassing the estimated $1.05 billion.
- Price-to-Earnings (P/E) ratio stands at approximately 7.89, indicating potential undervaluation.
Crocs, Inc. (NASDAQ:CROX), a leader in the casual footwear market, has once again demonstrated its ability to exceed market expectations with its Q3 2024 financial results. Competing with brands like Skechers and Deckers Outdoor Corporation, Crocs has been focusing on expanding its product line and distribution channels to stay ahead in the game.
On October 29, 2024, Crocs reported an Earnings Per Share (EPS) of $3.36, surpassing the analysts' consensus of $3.13. The company also reported a revenue of approximately $1.06 billion, exceeding the forecasted $1.05 billion. This performance underscores Crocs' capability to outperform market expectations and deliver robust financial outcomes.
During the Q3 2024 earnings call, CEO Andrew Rees and CFO Susan Healy highlighted the company's achievements. Notably, Crocs' adjusted diluted EPS saw an 11% increase to $3.60, reflecting the company's strategic effectiveness and operational efficiency.
The financial metrics of Crocs reveal a solid valuation. With a Price-to-Earnings (P/E) ratio of approximately 7.89, the company seems undervalued relative to its earnings. The Price-to-Sales ratio of about 1.63 indicates that investors are paying $1.63 for every dollar of sales, showcasing the stock's attractiveness. Moreover, the Enterprise Value to Sales ratio of around 2.02 highlights the company's overall valuation in comparison to its sales figures.
Crocs' financial health is further evidenced by a Debt-to-Equity ratio of approximately 1.03, pointing to a moderate level of debt. Additionally, a Current Ratio of around 1.43 demonstrates Crocs' solid capability to cover its short-term liabilities with its short-term assets, further affirming the company's strong financial standing and potential for sustained growth.
Crocs, Inc. (NASDAQ:CROX) Surpasses Market Expectations with Strong Q3 Earnings
- Earnings Per Share (EPS) of $3.36, beating the estimated $3.13.
- Revenue reached approximately $1.06 billion, surpassing the estimated $1.05 billion.
- Price-to-Earnings (P/E) ratio stands at approximately 7.89, indicating potential undervaluation.
Crocs, Inc. (NASDAQ:CROX), a leader in the casual footwear market, has once again demonstrated its ability to exceed market expectations with its Q3 2024 financial results. Competing with brands like Skechers and Deckers Outdoor Corporation, Crocs has been focusing on expanding its product line and distribution channels to stay ahead in the game.
On October 29, 2024, Crocs reported an Earnings Per Share (EPS) of $3.36, surpassing the analysts' consensus of $3.13. The company also reported a revenue of approximately $1.06 billion, exceeding the forecasted $1.05 billion. This performance underscores Crocs' capability to outperform market expectations and deliver robust financial outcomes.
During the Q3 2024 earnings call, CEO Andrew Rees and CFO Susan Healy highlighted the company's achievements. Notably, Crocs' adjusted diluted EPS saw an 11% increase to $3.60, reflecting the company's strategic effectiveness and operational efficiency.
The financial metrics of Crocs reveal a solid valuation. With a Price-to-Earnings (P/E) ratio of approximately 7.89, the company seems undervalued relative to its earnings. The Price-to-Sales ratio of about 1.63 indicates that investors are paying $1.63 for every dollar of sales, showcasing the stock's attractiveness. Moreover, the Enterprise Value to Sales ratio of around 2.02 highlights the company's overall valuation in comparison to its sales figures.
Crocs' financial health is further evidenced by a Debt-to-Equity ratio of approximately 1.03, pointing to a moderate level of debt. Additionally, a Current Ratio of around 1.43 demonstrates Crocs' solid capability to cover its short-term liabilities with its short-term assets, further affirming the company's strong financial standing and potential for sustained growth.
