CROX - Crocs Remains A Growth Driver - HeyDude's New Management Looks Promising

2024-06-15 10:00:00 ET

Summary

• CROX has reported a double beat FQ1'24 earnings call while raising the overall FY2024 guidance, thanks to the Crocs brand's robust performance domestically & internationally.
• These developments well balance HeyDude's ongoing inventory correction through the end of 2024, with a new management already brought in to revitalize the brand, Terence Reilly.
• Terence Reilly has been largely responsible for the impressive growth observed in the Stanley insulated cup brand, attributed to the excellent use of consumer marketing in social media.
• With FY2025 likely to bring forth improved YoY comparisons and, perhaps, better numbers for HeyDude, we believe that CROX remains a compelling growth stock.
• Its investment thesis will be significantly aided by the management's sustained deleveraging and share repurchases. Reiterate Buy.

We previously covered Crocs, Inc. (NASDAQ: CROX ) in March 2024, discussing why we had upgraded the stock to a Buy as the CROX management offered a promising guidance for HeyDude sales recovery in H2'24, with the robust cash flow also well deployed towards deleveraging and share count retirement.

Combined with the growing demand for its products internationally, well balancing the decelerating growth domestically, we believed that it had offered a compelling growth investment thesis then....

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