Crocs Shares Soar on Strong Outlook. Is It Too Late to Buy the Stock?

Crocs, Inc. (NASDAQ: CROX) shares have been on a tear, surging by nearly 50% in the past year, as investors bet on the company's strong brand recognition and innovative product offerings. The footwear and accessories retailer reported record 2024 results, with annual revenues of $4.1 billion, a 4% increase over the previous year. Earnings also grew by 9% to $13.17 per share. The company expects another year of positive revenue growth in 2025, led by the Crocs brand, which is projected to grow by mid-single digits.



Analysts are bullish on Crocs' prospects, with an average rating of "Buy" and a 12-month stock price forecast of $139.86, representing a 30.28% increase from the latest price. The company's strong financial performance, coupled with its robust brand recognition and commitment to innovation, has led many investors to believe that Crocs is a solid long-term investment.

However, some analysts have raised concerns about the HEYDUDE brand, which has struggled to stabilize and has been a source of uncertainty for investors. In a Seeking Alpha article from February 4, 2025, the author noted that the HEYDUDE brand is still waiting for stabilization, and its performance is a key risk factor for the company. While Crocs is taking a "prudent approach" to shaping its 2025 guidance for HEYDUDE, investors should monitor the brand's progress closely.



Despite these concerns, Crocs' strong financial performance and positive outlook have driven its stock price higher. The company's commitment to maintaining an annual operating margin at or above 24.0% and its exceptional cash flow generation support its long-term growth and value creation. As a result, investors may still want to consider buying Crocs' stock, despite its recent run-up.

In conclusion, Crocs' strong financial performance and positive outlook have driven its stock price higher, and analysts remain bullish on the company's prospects. However, investors should monitor the HEYDUDE brand's progress closely, as it remains a key risk factor for the company. Ultimately, the decision to buy Crocs' stock will depend on each investor's individual risk tolerance and investment goals.