Crocs, Inc. (NASDAQ:CROX) shares edged lower despite optimism around margin strength, international growth and ongoing shareholder returns.
The outlook reflects near-term pressure in North America, with expectations of a stronger recovery later in the year.
Bank of America Securities analyst Kendall Toscano reiterated the Buy rating on the stock, with a price forecast of $120.
Analysts’ Take
Toscano said first-quarter results are expected to be roughly in line with estimates, with sales pressured by reduced discounting and wholesale changes.
She said earnings upside could come from strong gross margins, international momentum and ongoing share buybacks over time.
The analyst added that improving North America trends could drive multiple expansions as the company shows clearer signs of recovery.
Per Toscano, these self-inflicted headwinds in North America are likely to persist in the first half of the year.
She said international strength is expected to offset weaker domestic performance partially during the same period.
Toscano added that the company’s projected second-half recovery in North America appears achievable as prior strategic actions are lapped.
She said management’s more conservative tariff assumptions for the first quarter could support potential upside in gross margins.
She noted that lower tariff rates may boost earnings, although benefits may take time to materialize fully.
Toscano added that rising oil prices are unlikely to create significant cost pressure given Crocs’ contract structure and past resilience.
CROX Price Action: Crocs shares were down 2.46% at $104.71 at the time of publication on Wednesday, according to Benzinga Pro data.
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