Crocs: Needham Maintains Buy Rating, Lowers PT to $89 from $129.

Crocs: Needham Maintains Buy Rating, Lowers PT to $89 from $129.

Crocs Inc. (NASDAQ:CROX) is set to report its Q2 2025 earnings on Thursday, August 7th, before market open. The consensus EPS estimate is $4.02, a 0.2% year-over-year increase, while revenue is expected to grow 1.8% to $1.14 billion [3]. Analysts at Needham & Company LLC have maintained a "buy" rating on Crocs but have lowered their price target from $129 to $89, reflecting a more cautious outlook.

Crocs has historically performed well in earnings reports, beating revenue and EPS estimates 100% of the time over the past two years [3]. Despite this strong track record, the recent downward revision in the price target suggests a shift in sentiment. Needham's analysts may be factoring in potential headwinds such as tariff issues or a slowdown in consumer demand.

The footwear sector has seen mixed results in recent quarters. Nike's revenues decreased 12% year-over-year, while Deckers reported a 16.9% increase [1]. Crocs, however, has shown resilience, with revenues of $937.3 million in the last quarter, a 3.1% beat over analyst expectations [1].

Needham's decision to lower the price target comes amid a broader trend of analysts maintaining a "buy" rating on Crocs. Over the last 30 days, analysts have generally reconfirmed their estimates, indicating a stable outlook for the company's business performance [1]. Despite the downward revision, Crocs is still expected to perform well, with an average analyst price target of $123.42, compared to the current share price of $101.50 [1].

The stock has been volatile in recent months, down 4.6% over the last month, but it remains a popular choice among investors in the footwear segment, with share prices up 1.6% on average [1]. The upcoming earnings report will provide further clarity on the company's financial health and the validity of Needham's revised price target.

References:
[1] https://www.tradingview.com/news/stockstory:73f33feb4094b:0-crocs-crox-reports-earnings-tomorrow-what-to-expect/
[2] https://www.marketbeat.com/instant-alerts/needham-company-llc-boosts-ralph-lauren-nyserl-price-target-to-33500-2025-08-05/
[3] https://seekingalpha.com/news/4480182-crocs-q2-2025-earnings-preview