Crocs (CROX) will lower its 2025 guidance significantly as a consequence of the looming US tariffs on Chinese goods when it reports Q1 results on May 8, but investors expectations are still unclear, UBS said in a note Thursday.

The company is likely to report inline Q1 earnings per share, but it faces a wide range of potential effects resulting from President Donald Trump's tariffs, analysts at UBS said. The share price is expected to move 9.7% either way when Crocs reports the results, compared to historical 10.3% fluctuation.

Investor sentiment already appears to be falling, with short interest rising 310 basis points and share price dropping 13% over the past three months, outpacing 11% decline for the S&P 500.

Based on recent conversations with investors, the consensus is for a $0.30 to $0.60 cut in EPS for 2025.

UBS has a neutral rating and a $100 price target for Crocs, with the price target reflecting a multiple of roughly 10 times projected fiscal 2027 EPS, largely keeping its valuation inline with Crocs' peers.

Price: 90.53, Change: +1.86, Percent Change: +2.10