Goldman Sachs has revised its price target for Crocs (CROX, Financial), reducing it from $88 to $87 while maintaining a Sell rating on the stock. This adjustment reflects the company's recent reevaluation of the U.S. apparel and softlines sector amidst current tariff conditions. The updated tariff rates include 30% for China, 20% for Vietnam, 19% for Indonesia, and 10% for other countries. These changes are influencing the firm's perspective on the market as a whole.
Despite these adjustments, the firm holds a generally positive outlook on consumer resilience and does not anticipate significant declines in sales forecasts for this quarter. However, certain risk elements within the sector remain under close observation.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Crocs Inc (CROX, Financial) is $123.74 with a high estimate of $150.00 and a low estimate of $87.00. The average target implies an upside of 19.40% from the current price of $103.64. More detailed estimate data can be found on the Crocs Inc (CROX) Forecast page.
Based on the consensus recommendation from 16 brokerage firms, Crocs Inc's (CROX, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Crocs Inc (CROX, Financial) in one year is $130.96, suggesting a upside of 26.36% from the current price of $103.64. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Crocs Inc (CROX) Summary page.
CROX Key Business Developments
Release Date: May 08, 2025
- Revenue: $937 million, up 1% year-over-year.
- Crocs Brand Revenue: $762 million, up 4% year-over-year.
- HEYDUDE Revenue: $176 million, down 10% year-over-year.
- Adjusted Gross Margin: 57.8%, up 180 basis points year-over-year.
- Adjusted Operating Margin: 23.8%, 230 basis points above guidance.
- Adjusted Diluted Earnings Per Share: $3, nearly 20% above guidance range.
- Share Repurchase: 607,000 shares repurchased for $61 million.
- Net Leverage: Within target range of 1 to 1.5 times.
- Inventory: $391 million, flat year-over-year.
- International Revenue Growth: 12%, with China up more than 30%.
- Direct-to-Consumer Growth: HEYDUDE up 8%.
- Wholesale Performance: Crocs up 5%, HEYDUDE down 17%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Crocs Inc (CROX, Financial) reported first-quarter revenues of $937 million, which grew 1% year-over-year and exceeded guidance expectations.
- The Crocs brand saw a 4% revenue increase, driven by double-digit growth internationally and strong performance in North America.
- Adjusted gross margins improved by 180 basis points to 57.8%, with adjusted operating margins exceeding guidance by over 200 basis points.
- The company repurchased 607,000 shares, maintaining a strong liquidity position with $166 million in cash and $679 million in borrowing capacity.
- Crocs Inc (CROX) achieved 12% revenue growth in international markets, with notable success in China and Western Europe.
Negative Points
- HEYDUDE brand revenues declined by 10% year-over-year, despite an 8% growth in direct-to-consumer sales.
- The company withdrew its full-year guidance due to uncertainties around tariffs and potential impacts on consumer demand.
- Incremental tariffs could potentially cost the company $45 million to $130 million annually, depending on the scenario.
- The macroeconomic environment remains volatile, with uncertainties in global trade policies affecting business planning.
- Retail partners are planning inventory levels conservatively, which could impact future sales and order volumes.
