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The market reacted to a signal that the company may be coming out of a period of weak sales and gradually recovering, Investing wrote.
According to analysts, the situation is improving on several fronts at once. In North America, which is a key market for Crocs, sales are beginning to stabilize. Additional contribution is also expected from the HEYDUDE brand, which was previously under pressure due to excess inventory and business restructuring.
The company says that measures launched from mid-2025 – selling off stock balances, reducing discounts and changing marketing and product strategy – are already starting to have an impact. This, according to analysts, is helping to improve sales dynamics.
The growth of direct sales of Crocs in North America is emphasized separately: in the first quarter they increased by 4.9%. This is the first positive result since the end of 2024. The company also recorded an improvement in wholesale orders, which could support further business recovery in the second half of the year.
The positive tone, according to Baird’s assessment, also came from the company’s management team at a recent investor meeting. At the same time, despite the stock’s growth of about 40% since the beginning of the year, analysts believe that the securities are still attractive.
In projections, Baird expects Crocs to post earnings of $13.55 per share in 2026 and $14.90 in 2027. In a more optimistic scenario, with accelerating sales growth and continued share buybacks, the figure could reach $17 per share in 2027.
Despite the risks – including weakness in consumer demand, tariffs and competition – analysts believe Crocs’ improving fundamentals, strong cash flow and return of capital to shareholders support a more positive view of the company.
