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Crocs’ Stock Drops on Q3 Profit Warning Despite Strong Q2 ReportCrocs Inc. (NASDAQ: NASDAQ:CROX ) experienced a notable decline in its stock price on Thursday, shedding about 5% despite reporting second-quarter earnings that exceeded Wall Street expectations. The footwear giant, renowned for its innovative casual footwear, warned of a potential dip in profits for the upcoming quarter, casting a shadow over its robust Q2 performance. Q2 Financial Highlights For the second quarter of 2024, Crocs reported a profit of $228.9 million, or $3.77 per share, up from $212.4 million, or $3.39 per share, in the same period last year. The company’s revenue reached $1.112 billion, marking a 3.6% increase (or 4.8% on a constant currency basis). The growth was primarily driven by a substantial increase in direct-to-consumer (DTC) revenues, which surged 8.9%, and an impressive gross margin of 61.4%, up from 57.9%. Andrew Rees, CEO of Crocs, highlighted the strength of the Crocs brand, particularly its exceptional international growth. He also mentioned the company's efforts to support the long-term health of the HEYDUDE brand by ramping up marketing efforts in the second half of the year. Crocs Brand Performance The Crocs brand reported a 9.7% increase in revenues, totaling $914 million. The growth was seen across various channels and geographies: - DTC Revenues: Increased by 12.5% to $479 million. - Wholesale Revenues: Rose by 6.9% to $435 million. - North America Revenues: Increased by 3.0% to $489 million. - International Revenues: Saw a significant rise of 18.7% to $425 million. Financial Outlook and Challenges Despite the positive Q2 results, Crocs’ guidance for the third quarter of 2024 raised concerns. The company expects: - Revenues to range from a 1.5% decline to a 0.5% increase compared to Q3 2023. - Crocs brand revenues to grow by 3% to 5%. - HEYDUDE brand revenues to decline by 16% to 14%. - Adjusted operating margin to be approximately 24.5%. - Adjusted diluted earnings per share to be between $2.95 and $3.10. For the full year 2024, Crocs maintained its revenue growth outlook of 3% to 5%, with the Crocs brand expected to grow by 7% to 9% and the HEYDUDE brand anticipated to decline by 10% to 8%. The adjusted operating margin is projected to exceed 25%, with adjusted diluted earnings per share estimated to be between $12.45 and $12.90. Market Reaction The market reacted negatively to the profit warning for Third Quarter (Q3), overshadowing the strong Q2 results. The concerns about the sustainability of Crocs’ growth, particularly in the HEYDUDE brand, and the anticipated lower profits for the upcoming quarter, led to the drop in stock price. From a technical perspective, it is evident that NASDAQ:CROX has undergone a series of falling wedge patterns, each preceded by a bullish reversal pattern. Presently, NASDAQ:CROX is exhibiting a similar pattern, accompanied by a relative strength index of 36.66. Anticipation for Q3 suggests a potential decline in NASDAQ:CROX until it reaches significant support at the $112 level. A breach above the one-month low is likely to signify a bullish reversal for $CROX. Conclusion Crocs Inc. continues to demonstrate resilience and growth, particularly with its flagship Crocs brand. However, the profit warning for Q3 has highlighted potential headwinds, especially with the HEYDUDE brand. Investors will be keenly watching how Crocs navigates these challenges and whether it can maintain its positive momentum in the coming quarters.
NASDAQ:CROX
by DEXWireNews
4
Crocs, Inc Appoints Susan Healy as EVP & Chief Financial OfficerCrocs, Inc. ( NASDAQ:CROX ) has appointed Susan Healy as Executive Vice President and Chief Financial Officer of the company, effective June 3. Healy succeeds Anne Mehlman, who was recently appointed President of the Crocs Brand. Mehlman will continue to serve as Chief Financial Officer until Healy's start date. She will join the executive leadership team and report directly to Andrew Rees, CEO. Healy will have responsibility over financial planning and analysis, accounting, investor relations, tax, internal audit, and corporate development. She joins Crocs from IAA, Inc., a global marketplace for automotive buyers and sellers, where she served as Chief Financial Officer and led the company through its $7 billion merger with Ritchie Bros. Auctioneers Incorporated. She has over three decades of financial and operational leadership experience. Prior to 2021, she served as Senior Vice President of Finance for Ulta Beauty. Earlier in her career, she held various senior financial leadership roles in addition to a 12-year tenure at Goldman Sachs. Crocs, Inc. ( NASDAQ:CROX ) reported its fiscal first quarter financial results on May 7, 2024, before the market opened. The company reported an exceptional first quarter, driven by mid-teens growth of the Crocs Brand, driven by robust consumer demand both in North America and in international markets. Andrew Rees, CEO, stated that Crocs delivered an exceptional first quarter, driven by record revenue, industry-leading gross margins, and the power of its diversified business. In the first quarter of 2024, Crocs Brand ( NASDAQ:CROX ) revenues increased 14.6% to $744 million, or 15.6% on a constant currency basis. Direct-to-consumer revenues grew 11.8% to $282 million, or 19.0% on a constant currency basis. Wholesale revenues increased 12.5% to $462 million, or 13.8% on a constant currency basis. North America revenues increased 9.0% to $383 million, or 9.0% on a constant currency basis. International revenues increased 21.3% to $361 million, or 23.6% on a constant currency basis. HEYDUDE Brand revenues decreased 17.2% to $195 million. The company's balance sheet and cash flow for March 31, 2024 compared to March 31, 2023 showed cash and cash equivalents at $159 million, inventories at $392 million, total borrowings at $1,727 million, and capital expenditures at $16 million. Financial Outlook for the second quarter of 2024 is expected to be up 1% to 3% compared to the same period last year. Crocs Brand revenues are expected to grow 7% to 9% compared to the same period last year. The HEYDUDE Brand is expected to contract (19%) to (17%) compared to the same period last year. In the full year of 2024, Crocs ( NASDAQ:CROX ) expects revenue growth of 3% to 5% compared to 2023, with revenues for the Crocs Brand growing approximately 7% to 9% and revenues for the HEYDUDE Brand contracting (10%) to (8%). Adjusted operating margins are expected to be around 25%. Non-GAAP adjustments of approximately $28 million related to the implementation of a new enterprise resource planning ("ERP") system for HEYDUDE and costs to transition to the new distribution center in Las Vegas, Nevada. As of March 31, 2024, Crocs ( NASDAQ:CROX ) had $875 million remaining on its current share repurchase authorization. Technical Outlook Crocs ( NASDAQ:CROX ) stock is up 1.89% in Tuesday's Pre-market trading with a Relative Strength Index (RSI) of 50.17. After the earnings beat, and the appointment of Susan Healy as the EVP & Chief Financial Officer, Crocs ( NASDAQ:CROX ) stock is poised for an upside gap due to the fundamentals. Gappers are formed in a chart when there is no trading activity but the stock rises in value causing an upside or downside gap as a result of a major event such as an earnings beat and quarterly reports, etc.
NASDAQ:CROXLong
by DEXWireNews
Crocs Stock Breaks Out on Strong Earnings and Resilient OutlookCrocs Inc. ( NASDAQ:CROX ) recently stunned investors with its fourth-quarter earnings report, surpassing expectations despite headwinds from the HeyDude brand and broader economic uncertainties. As the company charts a course for continued growth in 2024, let's delve into what's propelling Crocs to new heights and why investors should take notice. Unveiling Resilience Amid Challenges: Despite challenges posed by declining HeyDude sales and a sluggish wholesale market, Crocs ( NASDAQ:CROX ) showcased its resilience in the face of adversity. The company reported a 2.6% decline in adjusted earnings per share for the fourth quarter, beating analyst estimates by a wide margin. Moreover, Crocs' ( NASDAQ:CROX ) GAAP earnings surged a remarkable 89%, signaling robust underlying strength in its business operations. Key Highlights from the Earnings Report: Crocs ( NASDAQ:CROX ) reported a revenue increase of 1.6% to $960 million, slightly edging out forecasts despite a slowdown in growth momentum. Notably, direct-to-consumer sales saw a healthy uptick of 6.8%, underscoring the strength of Crocs' brand and its ability to connect directly with consumers. However, wholesale revenues experienced a modest decline of 4.6%, reflecting ongoing challenges in the broader retail landscape. The Road Ahead: As Crocs ( NASDAQ:CROX ) looks ahead to 2024, the company remains cautiously optimistic about its growth prospects. Despite forecasting a slight decline in revenue for the first quarter, management maintained its full-year outlook, expecting a 3% to 5% increase in revenue driven primarily by a solid performance from its flagship Crocs ( NASDAQ:CROX ) brand. Additionally, the company anticipates flat to slightly higher sales for the HeyDude brand, signaling a potential turnaround in the coming quarters. Investor Sentiment and Market Response: Investors welcomed Crocs' ( NASDAQ:CROX ) stellar performance, sending its stock soaring 8% higher in early trading following the earnings release. With shares poised to break out from their first base in nearly a year, Crocs has positioned itself as a standout performer in a volatile market environment. Despite a minor pullback earlier in the week, Crocs' ( NASDAQ:CROX ) stock has rallied nearly 16% since the beginning of the year, buoyed by strong earnings and optimistic guidance. Conclusion: In an era marked by uncertainty and rapid change, Crocs ( NASDAQ:CROX ) has proven to be a steady anchor for investors seeking stability and growth. With a solid earnings report under its belt and a resilient outlook for the year ahead, Crocs ( NASDAQ:CROX ) is primed to continue its upward trajectory. As the company navigates evolving market dynamics and capitalizes on emerging opportunities, investors would be wise to keep a close eye on this footwear giant as it charts its course for success in 2024 and beyond.
NASDAQ:CROXLong
by DEXWireNews
Crocs (NASDAQ: $CROX) Strides into 2024 with Record Revenues Crocs, Inc. (NASDAQ: NASDAQ:CROX ) is making waves in the footwear industry, with a recent surge of over 20% in its stock value following the announcement of impressive early 2023 results. The company's CEO, Andrew Rees, revealed that 2023 was a robust year for Crocs, marked by a successful holiday season and notable market share gains for both the Crocs and Hey Dude brands. Record-Breaking Performance in 2023: Crocs projects a record-breaking revenue of approximately $3.95 billion for the full year 2023, showcasing a remarkable 11% growth compared to the previous year. This exceeds the company's earlier guidance of 10% to 11% growth. The Crocs brand itself achieved a remarkable milestone by surpassing the $3 billion mark, experiencing growth exceeding 13%, while Hey Dude contributed approximately $949 million in revenues. Financial Strength and Debt Reduction: A key highlight of Crocs' performance is its strong free-cash flow generation, enabling the company to pay down a substantial $277 million in net debt during the fourth quarter of 2023. The full-year debt paydown amounted to an impressive $665 million. Such financial stability positions Crocs favorably for strategic investments and long-term growth. 2024 Outlook and Strategic Initiatives: Looking ahead to 2024, Crocs anticipates a continued positive trajectory with revenue growth projected at 3% to 5% compared to 2023. The Crocs brand is expected to drive this growth, with an estimated 4% to 6% increase, while Hey Dude's revenues are projected to remain flat to slightly up. CEO Andrew Rees emphasized the company's commitment to reinvesting its best-in-class margins into focused strategic investments. Notable initiatives include strong franchise management for the Crocs brand, introducing new products in 2024, including a promising new sandal franchise. Global growth, particularly in Asia, is anticipated, along with the expansion of Hey Dude's omnichannel strategy through the development of its outlet business. Operational Efficiency and Margin Targets: Crocs not only exceeded its fourth-quarter revenue expectations but also raised its full-year 2023 non-GAAP operating margin target to in excess of 27%. This reflects the company's operational efficiency and disciplined financial management. Looking into 2024, Crocs expects further gross margin improvement over 2023, with plans to reinvest these gains into brand accretive and strategic SG&A investments. The result is an anticipated non-GAAP operating margin of approximately 25% for 2024. Conclusion: Crocs, Inc. is undoubtedly on a trajectory of success, backed by robust financial performance, debt reduction, and a strategic vision for the future. Investors and footwear enthusiasts alike have reason to be optimistic as Crocs continues to innovate, expand its market presence, and position itself for long-term, durable growth in 2024 and beyond.
NASDAQ:CROXLong
by DEXWireNews
1
Crocs, Inc. (NASDAQ:CROX) Unravel The Hidden Gem(NASDAQ:CROX) Headquartered in Broomfield, Colorado, Crocs, Inc. (NASDAQ:CROX) engages in the footwear and accessories business. Crocs, Inc. (NASDAQ:CROX) stock closed at $96.84 per share. One-month return of Crocs, Inc. (NASDAQ:CROX) was -6.68%, and its shares gained 32.62% of their value over the last 52 weeks. Crocs, Inc. (NASDAQ:CROX) has a market capitalization of $5.97 billion. Along with Exact Sciences, notable adds in the quarter included Twist Bioscience, Saia and Crocs, Inc. (NASDAQ:CROX). Crocs designs, develops, manufactures and distributes casual footwear and accessories for men, women and children. The company invented the molded plastic Clog in 2002 and has turned it into a $3 billion global revenue base. We believe expansion opportunities outside the US, demand from new product introductions (including from recently acquired Hey Dude) and distribution pushes within the direct-to-consumer and wholesale channels will drive greater-than-expected revenue growth. Given the company’s small market share, just 1% of the global footwear industry, we believe it has a long runway for growth. Price Momentum CROX is trading near the bottom of its 52-week range and below its 200-day simple moving average. Investors have been pushing the share price lower, and the stock still appears to have downward momentum. This is a buy opportunity for prudent investors.
NASDAQ:CROXLong
by DEXWireNews
$CROX - 2Year Outlook - It's a buyLet me start off saying that i hate Crocs and i will never own a pair, but i recognize that other people like them and in a way Crocs can be considered the new age Sandal. The Juice I'm no expert at any of this, but even i can see that Crox is undervalued by A LOT. Their recent acquisition of HEYDUDE shoes that costed them 2B in debt is what seems to have attracted plenty of small time sharks like Loop Capital that are known for telling investors to sell their GameStop shares as it was supposedly worth $10 and quoting Anthony Chukumba from Loop Capital on CNBC: "Sell now, think later". Needless to say, yes, a little debt has attracted wallstreets' ugly side to this company. Sharks see debt, they see an opportunity for busting a company out on the long term by spreading lies and short and distort tactics like slashing $CROX stock price from $180 to a $80 recently. All that just for a little debt that'll be paid off in 2 years since $CROX is extremely profitable (35% profit margin) and can easily handle this debt (and they know it, hence why they even did this acquisition). Multiple insiders have actually bought $CROX stock in April (about 4 of them) all around the price of $76 indicating that even they think this is a dip. The last time insiders bought their own dip was in 2020 March when Corona hit and all stocks dived. This shows that the $CROX insiders are "trading savvy" bastards. The insiders buying wasn't just a disposal/exercise/tax thing either, it was pure code "P" purchases and i re-iterate that multiple insiders bought the stock. The signals The 5 year MACD & RSI indicate that the ~70 ish area is a good buy and the stock's fundamentals more than support this idea. What doesn't support this is Loop Capital coming out batting with their $80 PT indicating that they have more in store for $CROX short and distory until the HEYDUDE acqquisition goes through. I consider Loop Capital to be a scum tier hedgefund. They aren't even predators, they are scavengers. My hopes are that they are here only for the short term gains to be made by using $CROX 2Bn acquisition debt as the excuse, maybe they'll use other tactics, but in the end $CROX is not just a profitable company, but an extremely profitable company. No one is paying attention to $CROX because it's ugly rubber molded shoes, and that's why i'm long at $70 and i'm continuing to build my position. Somehow, $CROX is a thing and they make money, it's ridiculous, but if i sit and think about it, i can kinda understand it... there are people out there (more than i'd think...) that wear this in my opinion trash... and that's it... people wear Crocs. I made fun of Crocs as being a bit of a "meh" thing to wear to a Russian colleague and he thought Crocs were ok, i guess there's lots of people out there like him... Other info There are no other signals that i'm aware of, there is no squeeze, no high SI, no hidden shorts, nothing too weird going on here. The only funky thing about this is that $CROX had a big dump from November 22 2022 until recently and that dump is the same dump the entire retail sector & retail ETFs have felt. You'll see the same dump on almost all of retail except bigger stocks like Jeff Amazon's stock. Even GME had the same dump as well as XRT and many many others. I'd love to believe that this is a sector-wide short so that big boys can buy in on retail at low prices before what might be the next retail sector mega pump since supposedly Covid19 is suddenly "over". A big irrational short before buying in is something i've seen happen a few times on single stocks, but never sector-wide. Again, this is another one of the many reasons i've bought in on $CROX at $70 and consider it a long term play (2-4 years). I'm secured for another dump in case Loop Capital and other scavengers try to spread fake news about the company or try to change sentiment. At the same time i've sold a few puts in the money, at the money and out of the money because i'm extremely bullish for CROX long term and think anyone betting against it is going to get burned. I don't believe there's more downside to $CROX beyond what could be caused by another market correction. The insiders believe $76 is a strong buy and they've never been wrong, so yeah... get on the rubber shoes bandwagon today...
NASDAQ:CROXLong
by leenixusu
6
Crocs not to disappoint. CROXShort termoutlook. Bullish outlook for gains at 132.11, then 142.06 and 149.49. Invalidation at 116.62. We are not in the business of getting every prediction right, no one ever does and that is not the aim of the game. The Fibonacci targets are highlighted in green with invalidation in red. Fibonacci goals, it is prudent to suggest, are nothing more than mere fractally evident and therefore statistically likely levels that the market will go to. Having said that, the market will always do what it wants and always has a mind of its own. Therefore, none of this is financial advice, so do your own research and rely only on your own analysis. Trading is a true one man sport. Good luck out there and stay safe!
NASDAQ:CROXLong
by Rykin_Capital
CROX BREAKS RESISTANCE I know I post about this stock a lot, but that’s because I truly believe it can outperform in the short run and over the long term. After falling out of the upward channel CROX found support at the 37.50 line, and bounced upwards to retest the resistance line (last week’s support line), at which point it entered back into its upward channel. This is despite a prolonged market sell off for the past 3-4 days. Looking at the rsi , we can see that it also just bounced off of its long term support line, and is now heading to the top of the channel. After being up 10 percent today, CROX hit the top of the channel (43 range), fell a little and is still up 7 percent today. Before modifying it taking a position in this stock, I would wait for CROX to hit the bottom of the channel, or for the stock to breakout. To predict a breakout, wait for a decisive close above 43 and for the RSI to break above its resistance line, as well as a jump in volume . Alternatively. The stock could hit the roof and fall to the floor, at the 41 level. Wait for the stock to bounce at 41, then consider taking a position in the 41-42 range.
NASDAQ:CROXLong
by Isaiahgr3
CROX Big Day Confirms UptrendIt is easy to write about a long after it gains over 8% in one day, but this CROX breakout was more predictable than most realize. CROX first caught my eye when it bounced nicely off support at the long term uptrend line earlier in the month. I patiently waited for the MACD to begin curling upwards and RSI to be pointing up around the 40 level before I bought ATM calls (see vertical line on the chart). I was not expecting three days of red to follow after a small bounce, but managed to pick up some more calls because it was very close to the trend line, and technicals still pointed to an upwards move in the near term (see red arrow). Today, CROX broke out gaining over 8%, confirming the direction of the indicators and current uptrend. It now looks as CROX could gain much more in the near term as well. I have a price target of $21 for CROX over the next few weeks, and plan to sell half my position there and let the other half ride, as long as the upswing still looks sustainable.
NASDAQ:CROXLong
by pstowe