Latest news with #AndrewRees
Yahoo
29-06-2025
- Business
- Yahoo
5 Insightful Analyst Questions From Crocs's Q1 Earnings Call
Crocs' first quarter results were well received by the market, with revenue coming in flat year over year but ahead of Wall Street expectations. Management credited strong international growth and effective cost control for the quarter's performance, despite macroeconomic uncertainty and mixed demand in North America. CEO Andrew Rees highlighted the resilience of the Crocs brand, citing double-digit international growth and notable traction in China and Western Europe. Meanwhile, HEYDUDE's direct-to-consumer channel rebounded, offsetting wholesale declines. The company's gross margin improvement was attributed to lower product costs and a favorable customer mix, while disciplined inventory management helped maintain profitability. Is now the time to buy CROX? Find out in our full research report (it's free). Revenue: $937.3 million vs analyst estimates of $909.1 million (flat year on year, 3.1% beat) Adjusted EPS: $3 vs analyst estimates of $2.49 (20.6% beat) Operating Margin: 23.8%, in line with the same quarter last year Constant Currency Revenue rose 1.4% year on year (6.9% in the same quarter last year) Market Capitalization: $5.61 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Anna Andreeva (Piper Sandler) asked about the sustainability of gross margin gains and the likelihood of price increases; CEO Andrew Rees explained margin strength was driven by vendor negotiations, supply chain investments, and favorable mix, and said pricing actions will be targeted and depend on tariff developments. Jonathan Komp (Baird) inquired about the decision to withhold short-term guidance and the company's ability to offset tariff exposure; Rees replied that ongoing volatility in trade policy made forecasting difficult, and mitigation would involve production shifts and cost controls. Peter McGoldrick (Stifel) questioned the planned level of marketing spend amid uncertainty and how HEYDUDE's refresh would balance core appeal with new growth; Rees said marketing investment would be maintained and the brand's repositioning focused on core products and new styles to attract younger consumers. Laura Champine (Loop Capital) sought clarity on potential cost increases from Southeast Asia and demand elasticity if prices rise; Rees responded that current suppliers are not raising costs, and the company would prioritize margin preservation over volume if price increases become necessary. Aubrey Tianello (BNP Paribas) asked about the timeline for shifting sourcing out of China; Rees indicated most transitions could occur within 6 to 12 months, with minimal product-specific constraints. In upcoming quarters, the StockStory team will be monitoring (1) Crocs' ability to mitigate tariff pressures through supply chain adjustments and cost controls, (2) the resilience of international growth, especially in China and Europe, and (3) the effectiveness of price increases or marketing investments in sustaining consumer demand. The balance between margin protection and volume, along with wholesale channel trends, will be critical to track. Crocs currently trades at $102, up from $100.98 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Fibre2Fashion
28-06-2025
- Business
- Fibre2Fashion
US' Crocs reports 25% bio-circular content in sustainability update
Crocs, Inc. (NADSAQ: CROX), a world leader in innovative casual footwear for all, published its 2024 Comfort Report, reflecting updates and activations surrounding the enterprise's commitment to Corporate Responsibility and Sustainability. This annual report demonstrates how Crocs, Inc., inclusive of the Crocs and HEYDUDE brands, continues building upon its guiding pillars of Comfort for the Planet, Comfort for Our Communities, and Comfort for All People through its action-oriented ambitions of Inclusivity, Climate, Circularity, and Community. Crocs' 2024 Comfort Report highlights 25 per cent bio-circular content in Croslite, nearly 5 per cent emissions cut, global expansion of its takeback programme, and a recycled clog launch. It also introduced STEP UP TO GREATNESS to support over 3 million youth with skills and mentorship, reinforcing its Purpose strategy for social and environmental impact. "Our Purpose strategy is a catalyst for stronger business outcomes and a More Comfortable World For All," said Andrew Rees, CEO, Crocs, Inc . "In embracing this shared understanding, our global teams have approached Purpose with a spirit of collaboration and a focus on innovation. Embedding impact into the way we operate isn't just about doing good – it's also about creating a resilient, future-ready business." In 2024, the Crocs brand achieved 25% bio-circular content in its proprietary Croslite material—which accounts for more than 80% of the enterprise's total materials across its portfolio, including the Classic Clog—on a mass balance basis. The increased use of bio-circular content in Croslite material lowered emissions per pair of Crocs Classic Clogs by nearly 5% in 2024 compared to 2023 and approximately 10% from its 2021 baseline year, demonstrating the tangible impact that lower-carbon materials have had on Crocs' emissions footprint. Additionally, Crocs expanded its Old Crocs. New Life. consumer takeback program from its 2023 pilot to all 183 stores in the continental U.S. and Canada and a no-cost mail-in option in 2024. As of June 2025, Old Crocs. New Life. is now available in all Crocs-owned stores across Europe. In direct response to strong consumer engagement with Old Crocs. New Life., the brand launched the limited-edition Keep It Going Classic Clog made from the shoes it took back. The clog features 25% post-consumer recycled content with design elements that convey its circularity story like visible specs of recycled shred and a custom backstrap and rivet design. The Keep It Going Classic Clog is a proof point of the brand's circular strategy in action and was made possible by its fans and their excitement to do good together with Crocs. During 2024, Crocs, Inc. also introduced STEP UP TO GREATNESS, its community impact program that aims to helps young people ages 15-29 gain the skills they need to build confidence, access opportunities, unlock their potential, and be a positive force in their communities. Crocs, Inc. has committed to supporting more than 3 million young people to gain these STEP UP SKILLS by partnering with nonprofit organizations like UNICEF's UPSHIFT, a social innovation accelerator that equips young people with skills-building workshops, mentorship and entrepreneurial training, and Big Brothers Big Sisters, the preeminent youth mentoring organization in the U.S. and Canada. In HEYDUDE and Crocs stores across the U.S., retail employees engaged with Big Brothers Big Sisters mentors and mentees and provided consumers the opportunity to engage in the partnership by giving at the point of sale in store and on "Our teams around the world have worked together to take action toward our Purpose ambitions this past year," said Deanna Bratter, Chief Sustainability Officer, Crocs, Inc . "We have a lot of work ahead of us, and I am confident in our teams' collective efforts to Create a More Comfortable World For All." Crocs, Inc.'s Purpose strategy continues to be underpinned by its commitment to Responsibility and strong corporate governance. Crocs, Inc. is moving forward knowing that its Purpose strategy is focused on opportunities to create sustained, shared value for our business, people and planet. Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged. Fibre2Fashion News Desk (KD)
Yahoo
27-06-2025
- Business
- Yahoo
Crocs Updates Sustainability Progress In New Report
Crocs Inc. details in a new report how last year's initiatives are moving the company further along in its sustainability efforts. 'Our 'Purpose' strategy is a catalyst for stronger business outcomes and a more comfortable world for all,' Crocs' chief executive officer Andrew Rees said in a statement. 'In embracing this shared understanding, our global teams have approached Purpose with a spirit of collaboration and a focus on innovation. Embedding impact into the way we operate isn't just about doing good — it's also about creating a resilient, future-ready business.' More from WWD Do Crocs Shrink in Heat? The Issue Is at the Center of a New Lawsuit EXCLUSIVE: Stella McCartney, David Attenborough to Be Honored by New Environmental Start-up The Nat Report Findings Highlight Opportunities for Brands to Unlock the Next Phase of Value in Resale With DPPs Among the highlights, Crocs said in its report that it is relying on 'raw materials innovation' to reduce the carbon footprint of its popular Classic Clog by 50 percent by 2030. And it is looking at ways to achieve net zero by 2040. 'We are identifying opportunities for meaningful emissions reductions across our operations, in our raw materials, and through our transportation and distribution,' the report noted. The shoe firm said it achieved 25 percent bio-circular content in its proprietary Croslite material, which represents more than 80 percent of the firm's total materials across its portfolio that includes its core Classic Clog. 'The increased use of bio-circular content in Croslite material lowered emissions per pair of Crocs Classic Clogs by nearly 5 percent in 2024 compared to 2023 and approximately 10 percent from its 2021 baseline year,' the company said regarding the improvement in its emissions footprint. For Crocs shoes, its consumer take-back program it launched in 2023 called 'Old Crocs. New Life.' was expanded from a pilot to all of its 183 doors in the continental U.S. and Canada. It added a no-cost mail-in option in 2024. The program was again expanded this month to all Crocs-owned stores across Europe. Furthering the firm's circularity strategy and in responses to 'strong consumer engagement,' Crocs initiated a limited edition 'Keep It Going' Classic Clog made from shoes that were taken back. The clog uses a 25 percent post-consumer recycled content, and it includes design features such as visible specs of recycled shred and a customer back-strap and rivet design to convey its circularity story. Crocs is also said it worked to have all factories and suppliers across its Hey Dude and Crocs brands complete social compliance audits for 100 percent of Tier 1 factories by 2023 and 100 percent of Tier 2 suppliers by 2024. 'Our oversight structures help us gather insight into the aspects of our supply chain that we don't directly control,' the company said in its report. Last year, Crocs also introduced 'Step Up to Greatness,' a community impact program to help young adults between ages 15 to 29 to gain skills and access opportunities that can help their communities. Crocs committed to supporting more than 3 million people through partnerships with nonprofits such as UNICEF's social innovation accelerator Upshift and the Big Brothers Big Sisters youth mentoring program. The company's Hey Dude and Crocs stores in the U.S. also provide consumers with the option of giving to the youth mentoring organization at the point of sale and on Crocs' Purpose strategy — focused on opportunities to create sustained, shared value for its business, people and planet — continues to be underpinned by its commitment to responsibility and strong corporate governance. 'We have a lot of work ahead of use, and I am confident in our teams' collective efforts to create a more comfortable world for all,' Crocs' chief sustainability officer Deanna Bratter said. Best of WWD All the Retailers That Nike Left and Then Went Back Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Julia Fox's Sleekest and Boldest Shoe Looks Over the Years [Photos] Sign in to access your portfolio
Yahoo
10-06-2025
- Business
- Yahoo
CROX Q1 Earnings Call: Tariff Uncertainty Drives Guidance Withdrawal as Brand Investments Continue
Footwear company Crocs (NASDAQ:CROX) beat the market's revenue expectations in Q1 CY2025, with sales flat year on year at $937.3 million. Its non-GAAP EPS of $3 per share was 20.6% above analysts' consensus estimates. Is now the time to buy CROX? Find out in our full research report (it's free). Revenue: $937.3 million (flat year on year) Adjusted EPS: $3 vs analyst estimates of $2.49 (20.6% beat) Operating Margin: 23.8%, in line with the same quarter last year Constant Currency Revenue rose 1.4% year on year (6.9% in the same quarter last year) Market Capitalization: $5.69 billion Crocs' first quarter results were shaped by contrasting trends in its brand portfolio and proactive cost management amid industry volatility. CEO Andrew Rees pointed to double-digit international growth for the Crocs brand and stabilization in HEYDUDE's direct-to-consumer channel as key positives, while acknowledging that U.S. wholesale softness and deliberate inventory controls impacted topline growth. Rees highlighted the success of new product launches and digital campaigns, especially in Asia, as drivers of engagement. He also noted, 'We have identified approximately $50 million of additional savings to be realized in 2025 and we are continuing to evaluate potential actions for future savings.' Looking ahead, Crocs is operating without formal guidance due to unpredictable tariff dynamics and broader macro uncertainties. Management stressed that their sourcing mix and pricing strategies will be critical levers to offset potential cost pressures, particularly if tariffs escalate or remain volatile. CFO Susan Healy explained that the company is 'pursuing three primary levers to mitigate any potential impact of tariffs in the short and longer term: adjusting our sourcing mix into the U.S.; further reducing costs; and evaluating potential price increases.' Management also emphasized continued investment in marketing and digital channels to support both brands globally, but cautioned that consumer demand could soften if higher prices become widespread across the industry. Management attributed the quarter's performance to international expansion, product innovation, and digital marketing, while cost control actions addressed external pressures. International growth drives Crocs brand: Crocs brand delivered double-digit growth internationally, with China revenue up more than 30% year over year. New product launches and tailored marketing campaigns, such as the BAE relaunch with a global celebrity, boosted engagement and store traffic in key regions. HEYDUDE stabilizing in DTC: The HEYDUDE brand saw 8% growth in its direct-to-consumer channel, aided by refreshed product assortments and targeted influencer campaigns. While wholesale declined, management cited improved traction in digital and new retail formats as evidence of progress in stabilizing the brand. Cost savings initiatives enacted: The company identified $50 million in additional cost savings, focusing on SG&A (selling, general, and administrative expenses) reductions to offset macro and tariff-related headwinds. Management is actively evaluating further savings opportunities as conditions evolve. Social commerce and digital focus: Crocs continues to prioritize social-first marketing strategies, leveraging platforms like TikTok Shop, which contributed to the brand being ranked as the top footwear brand on the platform in the quarter. Digital campaigns and limited-edition collaborations drove high levels of new customer acquisition. Tariff and sourcing response: Facing new U.S. tariffs and related uncertainties, Crocs is rapidly adjusting its sourcing mix away from China and remains agile in shifting production to other regions. Management provided frameworks for potential tariff cost impacts and reiterated its preparedness to further diversify sourcing if needed. Management's outlook centers on navigating trade policy changes and maintaining brand momentum through strategic investments and cost actions. Tariff exposure and mitigation: Crocs' future profitability is heavily influenced by evolving tariff policies, especially for goods sourced from China and Vietnam. Management is diversifying its sourcing and indicated readiness to shift production within six to twelve months if higher tariffs persist, while also considering targeted price increases to protect margins. Sustained marketing and innovation: The company plans to maintain elevated marketing spend to reinforce consumer engagement, particularly in international markets and new product categories such as sandals. Continued investment in digital and influencer-driven campaigns is expected to support both brand relevance and customer acquisition. Inventory and wholesale discipline: Crocs and its retail partners are planning inventory and order volumes conservatively to avoid channel oversupply amid uncertain demand. Management is prioritizing brand health and is prepared to accept lower unit sales in the near term if necessary to preserve pricing and brand positioning. In upcoming quarters, the StockStory team will be watching (1) the effectiveness of Crocs' tariff mitigation strategies and rapid sourcing adjustments, (2) continued growth in international markets, especially China and Western Europe, and (3) the sustainability of HEYDUDE's direct-to-consumer recovery. The ability to balance cost control with ongoing investment in marketing and innovation will also be closely monitored as a marker of execution. Crocs currently trades at a forward P/E ratio of 8.1×. Should you double down or take your chips? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. 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Yahoo
09-06-2025
- Business
- Yahoo
Crocs, Inc. (CROX): A Bull Case Theory
We came across a bullish thesis on Crocs, Inc. (CROX) on The Finance Corner's Substack by Kostadin Ristovski. In this article, we will summarize the bulls' thesis on CROX. Crocs, Inc. (CROX)'s share was trading at $100.17 as of 5th June. CROX's trailing and forward P/E were 6.18 and 8.61 respectively according to Yahoo Finance. andersphoto / Crocs, founded in 2002, has carved out a unique space in the footwear industry with its polarizing design and proprietary Croslite material, offering comfort, lightness, and odor resistance. While its classic clogs and sandals are not inherently exciting, the company has driven engagement through personalization, celebrity partnerships, and Jibbitz accessories—turning its products into cult items especially among Gen Z. The brand saw an unexpected surge during the pandemic, as demand for comfortable, at-home footwear soared, propelling revenue and pushing its stock price from $11 to $180 in just over a year. Recognizing the temporary nature of this boom, management sought to diversify with the acquisition of HEYDUDE for $2.5 billion—a move initially criticized by the market. While HEYDUDE added lightweight, casual loafers to the portfolio and aimed for $1B in revenue by 2024, it fell short at $824M, validating some investor scepticism. However, CEO Andrew Rees has demonstrated strategic discipline, notably through an earlier rationalization that saw a 40% reduction in Crocs stores. Today, the company generates ~$900M in annual free cash flow, focusing on deleveraging and aggressive share buybacks, having reduced shares outstanding by 7% in 2024 alone. Still, questions persist: Is Crocs a lasting brand or a fashion fad? Bear, base, and bull valuation cases suggest fair values between $76 and $143 per share, hinging on this very question. Encouragingly, international markets grew 42% over two years while North America stagnated, and global manufacturing diversification gives Crocs strategic flexibility. At a $5.5B market cap, the company offers attractive upside—if it avoids missteps and remains culturally relevant. Previously, we covered a on Crocs (CROX) by Taylor Nichols, which aligns with Kostadin Ristovski's take. Since then, the stock has seen an 11% appreciation in price. Both highlight strong cash flow, high margins, and smart capital allocation. Nichols emphasizes valuation upside and financial strength, while Ristovski focuses on brand relevance and international growth. Together, they make a compelling bull case from both quantitative and qualitative angles. Crocs, Inc. (CROX) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held CROX at the end of the first quarter which was 41 in the previous quarter. While we acknowledge the risk and potential of CROX as an investment,our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
