Crocs Sales Remain Solid: Piper's Optimism Gains Feasibility

Piper Jaffray is out positive on Crocs (NASDAQ:CROX) saying their sales checks across multiple domestic and international markets suggest that sales of Crocs branded footwear remain solid.

Backing their checks, the firm cites Sportscan data which indicates YTD sales of Crocs have increased near 96% in the domestic sporting goods channel. The firm estimates this channel accounts for roughly 15%-20% of sales and represents one of Crocs' most mature domestic channels

PJ remains comfortable with their FQ4 estimate; upside likely in 1H08 on international bookings. On-hand inventory remains higher than PY; FQ1 peak delivery period.

The firm favors CROX shares for potential price appreciation during 2008. They view estimates as appropriately conservative and expect fundamental outperformance to continue.

Reits Outperform and $82 target.

Notablecalls: The stock has been halved over the past couple of months but Piper has continued to stand by their Outperform rating and whopping $82 price target. Checks indicate sales remain strong and with the stock trading at 13-14x PJ's projected '08 EPS, it does not look like a bad bet here. Retail (footwear) sales in general look awful but CROX continues to be a bright spot and therefore deserves a higher valuation.