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We previously covered Crocs, Inc. (NASDAQ:CROX) in March 2024, discussing why we had upgraded the stock to a Buy as the CROX management offered a promising guidance for HeyDude sales recovery in H2'24, with the robust cash flow
Crocs Remains A Growth Driver - HeyDude's New Management Looks Promising
Summary
- CROX has reported a double beat FQ1'24 earnings call while raising the overall FY2024 guidance, thanks to the Crocs brand's robust performance domestically & internationally.
- These developments well balance HeyDude's ongoing inventory correction through the end of 2024, with a new management already brought in to revitalize the brand, Terence Reilly.
- Terence Reilly has been largely responsible for the impressive growth observed in the Stanley insulated cup brand, attributed to the excellent use of consumer marketing in social media.
- With FY2025 likely to bring forth improved YoY comparisons and, perhaps, better numbers for HeyDude, we believe that CROX remains a compelling growth stock.
- Its investment thesis will be significantly aided by the management's sustained deleveraging and share repurchases. Reiterate Buy.
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