Update shared on17 Sep 2025
Fair value Decreased 4.36%Analysts lowered their price target for Crocs from $91.83 to $87.83 amid concerns about softening sales growth, U.S. consumer demand shifts, macro headwinds, and ongoing pressure from the HEYDUDE brand, despite some optimism over management's reaffirmed guidance and leadership changes.
Analyst Commentary
- Ongoing concerns about muted sales growth, limited visibility into revenue recovery through 2026, and challenging U.S. market trends are prompting downward price target revisions and rating downgrades by bearish analysts.
- Bearish analysts cite macroeconomic headwinds, weakening consumer demand, intensified competition, and a shift in U.S. consumer preference toward athletic footwear as key risks impacting Crocs' fundamentals and margin outlook.
- Several analysts highlight the continued negative impact from the HEYDUDE brand and internal channel inventory adjustments, which are pressuring margin and contributing to a more cautious revenue outlook.
- Bullish analysts note management's reaffirmation of Q3 guidance despite recent volatility and are encouraged by the new CFO's softlines sector experience, interpreting the leadership change as a positive step for the company.
- Adjustments to valuation multiples, both upward and downward, reflect divergent views on Crocs' resilience: some see stable long-term potential and constructive marketing/innovation, while others remain concerned about normalizing demand for the core product and continued near-term headwinds.
What's in the News
- Crocs announced a multiyear licensing deal with the NFL, launching a collection featuring NFL team colors and logos, aimed at enhancing brand engagement among football fans (Adweek, 2025-08-18).
- The company has entered a high-profile collaboration with Krispy Kreme, releasing limited-edition clogs and themed Jibbitz charms, supported by co-branded promotions at Krispy Kreme stores (Key Developments, 2025-07-23).
- Patraic Reagan, a seasoned executive with prior experience at SharkNinja and Nike, has been appointed as Chief Financial Officer following the resignation of Susan Healy (Key Developments, 2025-08-29).
- Crocs reaffirmed its Q3 2025 guidance, projecting a revenue decline of approximately 9–11% year-over-year, but confirmed its financial outlook and continued buybacks, repurchasing $133.27 million in shares during Q2 (Key Developments, 2025-08-07; 2025-08-29).
- The company reported a small goodwill impairment of $307,000 for Q2 2025 and was dropped from multiple Russell Growth Indices as of June 2025 (Key Developments, 2025-08-07; 2025-06-28/30).
Valuation Changes
Summary of Valuation Changes for Crocs
- The Consensus Analyst Price Target has fallen slightly from $91.83 to $87.83.
- The Future P/E for Crocs has fallen slightly from 5.72x to 5.49x.
- The Discount Rate for Crocs remained effectively unchanged, moving only marginally from 9.43% to 9.53%.
Disclaimer
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