2024-04-10 10:33:34 ET
Summary
- Crocs has outperformed the S&P 500 and Nasdaq 100 YTD, with strong revenue and earnings growth in its Crocs Brand, where all its product lines continue to gain market share.
- The HEYDUDE segment has seen slower growth, but the company hopes to replicate the success of the Crocs Brand, as it expands its outlet retail strategy, while stabilizing gross margins.
- The company expects to see revenue and earnings slowdown in FY24, but the management’s focus on product innovation, international growth and margin expansion, makes the stock a "buy".
Introduction & Investment Thesis
Crocs ( CROX ) is a casual lifestyle footwear and accessories company that has outperformed the S&P 500 and Nasdaq 100 YTD. The company released its Q4 FY23 earnings report in February, where revenue and earnings grew 12% YoY and 11% YoY, respectively, beating expectations. The company saw strong performance in its Crocs Brand segment, where revenue grew 14% YoY to $3B, driven by growth in its Clogs, Sandals, and Jibbitz product lines. Meanwhile, revenue in its HEYDUDE segment grew 6% YoY to $949M....
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Crocs: The Immaculate Trifecta Helps Ensure Full Speed Ahead