Deckers vs. Crocs: Which Stock Offers Better Value in 2025?

In the competitive footwear market, Deckers Outdoor Corp (DECK) and Crocs, Inc. (CROX) have both experienced significant declines from their respective 52-week highs, with DECK down approximately 30% and CROX down around 35%. As investors look to capitalize on these pullbacks, the question arises: which stock offers better value in 2025? To answer this, let's examine the recent performance, financial health, and growth prospects of both companies.

Deckers Outdoor Corp (DECK):

* DECK reported a 18.17% increase in revenue to $990 million in the fourth quarter of 2024, compared to $960 million in the fourth quarter of 2023.
* The company also reported a 52.9% increase in diluted earnings per share to $6.36 in the fourth quarter of 2024, compared to $4.16 in the fourth quarter of 2023.
* DECK expects revenue growth of approximately 3.5% in the first quarter of 2025.
* Analysts have a positive outlook on DECK, with an average price target of $225.31, indicating a 45.30% increase from the latest price.

Crocs, Inc. (CROX):

* CROX reported a 4% increase in annual revenue to $4.1 billion in 2024, compared to $3.96 billion in 2023.
* The company also reported a 19.87% increase in earnings to $950.07 million in 2024, compared to $792.77 million in 2023.
* CROX expects revenue growth of approximately 2% to 2.5% in 2025, led by mid-single digit growth in the Crocs Brand.
* Analysts have a positive outlook on CROX, with an average price target of $139.86, indicating a 28.99% increase from the latest price.



When comparing the two companies, DECK appears to have stronger recent performance, with a higher revenue growth rate and a more significant increase in earnings per share. However, CROX's revenue growth rate is still impressive, and the company's expectations for 2025 growth are slightly higher than DECK's. Both companies have positive analyst outlooks, with average price targets indicating significant upside potential.

Ultimately, the better buy between DECK and CROX depends on individual investors' preferences and risk tolerance. DECK's stronger recent performance and higher earnings growth may appeal to investors seeking a more stable and established company, while CROX's slightly higher expected growth rate and positive outlook may attract investors looking for a more aggressive play in the footwear market. Regardless of which stock investors choose, both DECK and CROX offer compelling value at their current price levels.

Rating: Both DECK and CROX are rated as "Buy" based on their strong recent performance, positive financial health, and growth prospects. However, investors should conduct their own due diligence and consider their individual risk tolerance when making investment decisions.