Crocs (CROX) Stock Dives on Agreement to Acquire HEYDUDE
Zacks Investment Research | Dec 24, 2021 07:28AM ET
The Crocs (NASDAQ:CROX) Inc. industry ’s growth of 7.3% in the same period.
Sturdy consumer demand and brand strength have been contributing to Crocs’ robust growth story. The company’s focus on product innovation and marketing, digital capabilities, and tapping of growth opportunities in Asia also bode well.
Crocs’ timely actions helped mitigate the impacts of factory closures in Vietnam, its major manufacturing hub, and the global supply-chain bottlenecks in the third quarter. The company took immediate action to shift production, enhance factory throughput, leverage air freight, and strategically allocate units.
It remains optimistic about navigating through the tough times. Notably, it is shifting production capacity to countries, namely China, Indonesia and Bosnia. Management notified that the company can ramp up factory production due to the limited inputs and simple configuration of products. Crocs is also planning to lower its dependency on West Coast ports by adding East Coast transshipment capabilities to reach key customers in the United States.
In spite of the temporary disruptions, Crocs anticipates revenues growth of more than 20% in 2022, fueled by brand strength and consumer demand globally. Wholesale orders for the first half of 2022 have been exceptionally strong. To strengthen inventory positions across all its regions for the first half of 2022, Crocs plans to invest $75 million in air freight.
h3 Stocks to Watch/h3We have highlighted some better-ranked stocks from the same industry, namely Delta Apparel (NYSE:DLA) .
The Zacks Consensus Estimate for Delta Apparel’s current financial-year sales and earnings per share suggests growth of 11.6% and 9.4%, respectively, from the year-ago period’s reported numbers.
Guess currently carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 97%, on average. Shares of GES have risen 14.1% in the past year.
The Zacks Consensus Estimate for Guess’ current financial-year sales suggests growth of 38.6% and the same for earnings per share indicates substantial growth from the year-ago period’s reported figures.
Under Armour currently carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 244.5%, on average. Shares of UAA have gained 18.4% in the past year.
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The Zacks Consensus Estimate for Under Armour’s current financial-year sales and earnings per share suggests growth of 25% and 396.2%, respectively, from the year-ago period’s reported numbers. UAA has an expected long-term earnings growth rate of 25%.
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