Crocs 40%-60% Potential Upside
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Crocs'(CROX) acquisition of casual footwear brand Hey Dude is expected to be "immediately accretive to earnings" and will also allow the clogs maker to diversify into larger footwear markets, B. Riley said in a research note emailed Monday.
Crocs (CROX) said Thursday it agreed to buy Hey Dude for $2.5 billion. The company said it would pay $2.05 billion in cash and $450 million in Crocs(CROX) shares issued to Hey Dude CEO Alessandro Rosano. The deal is expected to close in Q1 2022, Crocs(CROX) said.
B. Riley said the deal would allow Crocs(CROX) to further diversify out of clogs and into other casual products such as boat shoes and sneakers. The analysts noted that the casual footwear market is estimated to be worth around $125 billion, compared with $8 billion for the clog footwear market.
The analysts said they are still positive on Crocs(CROX) shares due to strong demand for their core products and are estimating $1.00 per share in accretion to FY 2022 earnings per share due to the acquisition.
B. Riley has a buy rating and $174 price target on Crocs(CROX).
Company Profile
Sector:Consumer Discretionary
Industry: Textiles, Apparel & Luxury Goods
Company Location: Broomfield, CO
Crocs, Inc., together with its subsidiaries, designs, develops, manufactures, markets, and distributes casual lifestyle footwear and accessories for men, women, and children. It offers various footwear products, including sandals, wedges, flips, slides clogs, charms, and shoes under the Crocs brand name. The company sells its products in approximately 80 countries through wholesalers, retail stores, e-commerce sites, and third-party marketplaces. As of December 31, 2020, it had 186 outlet stores, 100 retail stores, 65 store-in-stores, and 13 company-operated e-commerce sites. The company serves in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Crocs, Inc. was founded in 1999 and is headquartered in Broomfield, Colorado.
12-Month Price Targets
Mean: $204.00
High: $300.00
Low: $157.00
Crocs (CROX) said Thursday it agreed to buy Hey Dude for $2.5 billion. The company said it would pay $2.05 billion in cash and $450 million in Crocs(CROX) shares issued to Hey Dude CEO Alessandro Rosano. The deal is expected to close in Q1 2022, Crocs(CROX) said.
B. Riley said the deal would allow Crocs(CROX) to further diversify out of clogs and into other casual products such as boat shoes and sneakers. The analysts noted that the casual footwear market is estimated to be worth around $125 billion, compared with $8 billion for the clog footwear market.
The analysts said they are still positive on Crocs(CROX) shares due to strong demand for their core products and are estimating $1.00 per share in accretion to FY 2022 earnings per share due to the acquisition.
B. Riley has a buy rating and $174 price target on Crocs(CROX).
Company Profile
Sector:Consumer Discretionary
Industry: Textiles, Apparel & Luxury Goods
Company Location: Broomfield, CO
Crocs, Inc., together with its subsidiaries, designs, develops, manufactures, markets, and distributes casual lifestyle footwear and accessories for men, women, and children. It offers various footwear products, including sandals, wedges, flips, slides clogs, charms, and shoes under the Crocs brand name. The company sells its products in approximately 80 countries through wholesalers, retail stores, e-commerce sites, and third-party marketplaces. As of December 31, 2020, it had 186 outlet stores, 100 retail stores, 65 store-in-stores, and 13 company-operated e-commerce sites. The company serves in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Crocs, Inc. was founded in 1999 and is headquartered in Broomfield, Colorado.
12-Month Price Targets
Mean: $204.00
High: $300.00
Low: $157.00
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