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Crocs (CROX)
:CROX
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Crocs
(NASDAQ:CROX)76Outperform
Positive Factors
Profitability
Management’s commitment to operating the company at a 24%+ operating margin on an annual basis provides confidence in maintaining profitability.
Sales Growth
4Q Crocs brand sales increased 4% as North America outperformed plan and international sales increased 11.5%, with China growth accelerating vs the prior quarter.
Negative Factors
HEYDUDE Brand Challenges
Downgrading from Buy to Hold as Crocs trends are weakening, and HEYDUDE trends remain weak and are showing no signs of improving.
Crocs (CROX) vs. S&P 500 (SPY)
Market Cap
$5.66B
Dividend YieldN/A
Average Volume (3M)1.90M
Price to Earnings (P/E)6.5
Beta (1Y)1.30
Revenue Growth3.53%
EPS Growth24.55%
CountryUS
Employees7,910
SectorConsumer Cyclical
Sector Strength53
IndustryApparel & Luxury
Share Statistics
EPS (TTM)15.98
Shares Outstanding56,056,160
10 Day Avg. Volume1,628,095
30 Day Avg. Volume1,898,845
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)N/A
Price to Sales (P/S)1.38
Price to Cash Flow (P/CF)4.40
P/FCF Ratio4.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$130.30Price Target Upside25.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Crocs Business Overview & Revenue Model
Company DescriptionCrocs, Inc. engages in the design, development, manufacturing, worldwide marketing, sale and distribution of casual footwear, apparel, and accessories for men, women, and children. It operates through the following segments: Americas, Asia Pacific and Europe, Middle East & Africa (EMEA). The Americas segment consists of the revenues and expenses related to product sales in North and South America. The Asia Pacific segment includes the revenues and expenses related to the product sales in Asia, Australia and New Zealand. The EMEA segment contains the revenues and expenses related to the product sales in Europe, Russia, Africa and the Middle East. The company was founded by Scott Seamans, George B. Boedecker, Jr. and Lyndon V. Hanson III in 2002 and is headquartered in Niwot, CO.
How the Company Makes MoneyCrocs makes money primarily through the sale of its footwear products, which are distributed globally via a multi-channel approach that includes direct-to-consumer sales through its branded retail stores and e-commerce platforms, as well as wholesale agreements with various retail partners. The company's revenue streams are bolstered by its strong brand recognition and the high demand for its distinctive products. Collaborations with popular brands and celebrities also play a significant role in driving sales and expanding market reach. Additionally, Crocs strategically leverages marketing campaigns and customer engagement initiatives to enhance brand loyalty and boost sales across different regions.
Crocs Financial Statement Overview
Summary
Crocs showcases strong financial performance with robust revenue and profit margins, effective cost management, and efficient cash flow. However, the balance sheet indicates a moderate leverage that could be improved.Income Statement
Crocs has shown impressive revenue growth over the years, with a significant increase in total revenue and gross profit. The gross profit margin is strong, reflecting effective cost management. Net profit margin and EBIT margin are robust, indicating high profitability. The consistent increase in revenue and margins suggests a healthy growth trajectory.91
Very Positive
Balance Sheet
The company has a moderate debt-to-equity ratio, which indicates a balanced approach towards leveraging for growth. The return on equity is solid, reflecting efficient use of equity capital. The equity ratio shows a reasonable level of assets funded by equity, although there is room for enhancement in financial stability by further reducing liabilities.76
Positive
Cash Flow
Crocs demonstrates strong cash flow performance with consistent free cash flow growth. The operating cash flow to net income ratio is healthy, suggesting effective conversion of profits into cash. The free cash flow to net income ratio is also commendable, showing efficient cash management practices.87
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.10B | 3.96B | 3.55B | 2.31B | 1.39B | Gross Profit |
| 2.41B | 2.21B | 1.86B | 1.42B | 749.95M | EBIT |
| 1.02B | 1.05B | 850.76M | 683.06M | 214.12M | EBITDA |
| 1.02B | 1.09B | 893.89M | 717.47M | 241.34M | Net Income Common Stockholders |
| 950.07M | 792.57M | 540.16M | 725.69M | 312.86M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 180.49M | 149.29M | 191.63M | 213.20M | 135.80M | Total Assets |
| 4.81B | 4.64B | 4.50B | 1.55B | 1.12B | Total Debt |
| 351.96M | 2.00B | 2.59B | 963.56M | 373.46M | Net Debt |
| 171.47M | 1.85B | 2.40B | 750.36M | 237.66M | Total Liabilities |
| 2.98B | 3.19B | 3.68B | 1.53B | 828.09M | Stockholders Equity |
| 1.84B | 1.45B | 817.93M | 14.08M | 290.63M |
| Cash Flow | Free Cash Flow | |||
| 923.14M | 814.82M | 498.95M | 511.25M | 224.87M | Operating Cash Flow |
| 992.49M | 930.44M | 603.14M | 567.16M | 266.90M | Investing Cash Flow |
| -69.35M | -115.67M | -2.15B | -55.92M | -41.76M | Financing Cash Flow |
| -886.05M | -859.64M | 1.53B | -429.64M | -198.04M |
Crocs Technical Analysis
Positive
103.85
Price Trends
104.44
Negative
109.50
Negative
125.22
Negative
Market Momentum
-0.21
Positive
51.55
Neutral
27.87
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CROX, the sentiment is Positive. The current price of 103.85 is above the 20-day moving average (MA) of 101.38, below the 50-day MA of 104.44, and below the 200-day MA of 125.22, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 51.55 is Neutral, neither overbought nor oversold. The STOCH value of 27.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CROX.
Crocs Risk Analysis
Crocs disclosed 41 risk factors in its most recent earnings report. Crocs reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Crocs Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $20.30B | 22.09 | 39.80% | ― | 19.40% | 32.70% | |
76 Outperform | $5.66B | 6.50 | 57.76% | ― | 3.53% | 24.55% | |
73 Outperform | $8.63B | 13.91 | 13.52% | ― | 12.11% | 19.16% | |
73 Outperform | $2.13B | 12.51 | 20.20% | 2.85% | 15.03% | 1.51% | |
71 Outperform | $4.61B | 21.81 | 12.01% | 1.44% | -3.35% | -6.09% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
58 Neutral | $1.14B | 24.52 | 15.57% | 2.79% | -21.75% | ― |
* Consumer Cyclical Sector Average
Performance Comparison
CROX
Crocs
103.85
-16.54
-13.74%
COLM
Columbia Sportswear
84.36
5.12
6.46%
DECK
Deckers Outdoor
136.09
-15.91
-10.47%
SKX
Skechers USA
59.34
-1.47
-2.42%
SHOO
Steven Madden
29.01
-12.21
-29.62%
WWW
Wolverine World Wide
14.30
5.20
57.14%
Crocs Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: 16.91% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
Crocs, Inc. reported strong revenue growth and financial performance for 2024 with successful debt reduction and share buybacks. However, challenges such as slowed growth in North America, a decline in HEYDUDE revenues, and external factors like tariffs and currency fluctuations present obstacles. The overall sentiment of the call is cautiously optimistic as the company focuses on addressing these challenges.Highlights
Record Revenue and Growth
Crocs, Inc. achieved $4.1 billion in total revenues for the full year of 2024, marking a 4% increase compared to the prior year. The Crocs Brand grew by 10%, with international growth at 19% and North America at 3%.
Strong Financial Performance
The company reported adjusted gross margins of 58.8%, a 230 basis point increase over the prior year, and an adjusted operating margin of 25.6%. Adjusted diluted EPS increased by 9% to $13.17.
Successful Debt Reduction and Share Buybacks
Crocs generated $923 million in free cash flow, allowing them to pay down $323 million in debt and repurchase approximately 4.3 million shares for $551 million.
HEYDUDE Brand Recovery
HEYDUDE Brand revenues stabilized, with the fourth quarter showing flat growth compared to the prior year and a 7% increase in the direct-to-consumer channel.
Strong Performance in China
China revenues grew 64% year-over-year, making it the second-largest market after the US. The growth was balanced, reflecting positive comp store sales, digital growth, and new store growth.
Lowlights
North America Growth Challenges
North America revenues grew only 3% compared to the prior year, with wholesale declines and a challenging consumer environment impacting growth.
HEYDUDE Brand Decline
For the full year, HEYDUDE revenues were down 13% compared to the prior year, with wholesale revenues down 20% and a decrease of 4% in the direct-to-consumer channel.
Impact of Tariffs and Currency Fluctuations
The company expects a $11 million headwind to gross profit from tariffs and a $60 million currency headwind for the year 2025.
Anticipated Decline in Q1 2025 Revenues
Enterprise revenues for Q1 2025 are expected to be down approximately 3.5% on a reported basis due to currency and Easter timing impacts.
Company Guidance
During the Crocs Fourth Quarter 2024 Earnings Call, the company reported several key financial metrics and provided guidance for 2025. Crocs achieved a 4% revenue growth for the full year 2024, totaling $4.1 billion, with an adjusted gross margin of 58.8%, marking a 230 basis point increase over the previous year. The Crocs Brand revenues grew 10% to $3.3 billion, with international sales up 19% and North America up 3%. The HEYDUDE Brand generated $824 million, with a return to growth in the direct-to-consumer channel in the fourth quarter. The company generated $923 million in free cash flow, enabling debt reduction and share repurchases. For 2025, Crocs anticipates a 2% to 2.5% revenue growth on a reported basis and an adjusted operating margin of approximately 24%, despite expected foreign currency and tariff impacts. The company plans continued investments in marketing and talent and expects adjusted diluted EPS between $12.70 and $13.15.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.