Investing.com -- Williams Trading downgraded Crocs Inc (NASDAQ:CROX) to "Hold" from "Buy" and cut its price target to $112 from $127 given weakening trends in the flagship Crocs brand and continued softness in HEYDUDE.
Proprietary checks indicate U.S. retailers are planning flat Crocs sales and lower HEYDUDE sales in 2025, with no immediate signs of improvement.
The firm also reduced revenue and earnings estimates for Crocs through 2026, highlighting challenges in demand and strategic clarity for the HEYDUDE brand.
The recent appointment of ex-Yeezy designer Steven Smith as head of creative innovation for both brands adds uncertainty to near-term sales and margins. Williams Trading called for a more targeted approach to product and pricing strategies, including strategic use of minimum advertised price policies for core and non-core items.
HEYDUDE’s new product lineup, including sneakers, boots, and professional footwear, faces challenges due to a lack of demand-driven allocation strategies for its core styles, which represent the bulk of its revenue.
Related Articles
Crocs cut to hold by Williams Trading on weakening trends
KKR hires Goldman for selling stake in Philippine fintech Maya, sources say
Goldman boosts CEO pay by 26% to $39 million, lines up five more years at helm
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.