- **Revenue Growth Driven by International Sales:** Crocs’ international markets have significantly contributed to its revenue increase.
- **Q2 Financial Estimates:** Adjusted earnings per share (EPS) are estimated at $4.00, with an expected revenue of $1.14 billion.
- **Profitability Metrics:** The adjusted gross margin is projected at 60.6%, with selling, general, and administrative (SG&A) expenses projected at 34.7% of total revenue.
- **Operating Performance:** Crocs anticipates an adjusted operating margin of 26% and an adjusted operating income of $296.8 million.
- **Net Income and Third Quarter Outlook:** Adjusted net income is forecast at $224.4 million for the quarter. Third-quarter revenue is projected at $1.07 billion with an adjusted operating margin of 23.2%.
- **Full-Year 2025 Projections:** Total revenue for 2025 is estimated at $4.14 billion, with an adjusted operating income of $945.3 million and an operating margin of 22.8%. The adjusted EPS is expected to be $12.65.
- **Analyst Insights:** Piper Sandler notes potential challenges in North American sales due to unfavorable weather and reduced promotions but sees no significant threats to sales as the margins are likely to benefit.
- **Promotions Impact:** Despite a reduction in smaller promotions, core promotional activities remain strong without impacting sales significantly.
- **Market Perception:** Analysts have 10 buy, 5 hold, and 1 sell ratings, with an average price target suggesting an 18.7% upside.
- **Stock Performance:** Crocs shares have decreased by 17.9% over the past year, contrasting with a 21.1% increase in the SPX Index.
- **Earnings Release Schedule:** The earnings release is expected on August 7, with an anticipated 6% implied share movement following the announcement.
Crocs Inc on Smartkarma
Analysts at Baptista Research have been closely following Crocs Inc on Smartkarma, a platform for independent research. In one report titled “Crocs Inc. Accelerates Global Expansion With Aggressive Market Penetration in China,” the analysts highlighted the company’s stable performance in the first quarter of 2025 despite a challenging global economic landscape. Crocs Inc‘s total revenues grew by 1% to $937 million, surpassing expectations of a potential decline, with the Crocs brand specifically driving a 4% revenue increase to $762 million. The sentiment lean on this insight was bullish, indicating optimism towards Crocs Inc‘s expansion strategies.
In another report by Baptista Research titled “Crocs Inc.: Will its Product Diversification & Innovation Be A Breakthrough Move?”, the analysts delved into the company’s financial performance for the fourth quarter and full year of 2024. Crocs Inc demonstrated steady growth, achieving total revenues of $4.1 billion for the year, marking a 4% increase over the previous year. Furthermore, improvements in adjusted gross margin by 230 basis points to 58.8% and an adjusted operating margin of 25.6% were noted. The sentiment lean on this report was also bullish, suggesting confidence in Crocs Inc‘s product innovation and diversification strategies.
A look at Crocs Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts provide a positive long-term outlook for Crocs Inc, with a Smartkarma Smart Score of 4 for Growth. This suggests that the company is well-positioned for future expansion and development in the footwear market. Additionally, Crocs Inc receives favorable scores of 3 for both Value and Resilience, indicating a solid foundation and the potential for steady performance over time.
Despite a lower score of 1 for Dividend, investors may find appeal in Crocs Inc‘s growth prospects and product offerings. With a combined Momentum score of 3, the company demonstrates a level of consistent performance and market presence. Crocs Inc, known for its soft and lightweight shoe designs made from innovative materials, continues to target a wide customer base through retail chains, offering a diverse range of footwear for men, women, and children.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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