Crocs (CROX) has the potential to deliver Q2 upside and enter the second half of 2026 with strengthening momentum, supported by North American direct-to-consumer momentum and new product launches, BofA Securities said in a Thursday note.
The analyst said sustained North American direct-to-consumer momentum, led by newer products such as sandals, could drive a Q2 beat, with easier comparisons in the second half as the company laps last year's promotional and wholesale sell-in reductions.
BofA also said lower tariff costs could support Q2 margins, though the benefit may be partly offset by a richer mix of newer products and lower-margin channels, while early Q3 launches of Echo 2 and Mellow 2 are expected to sustain demand.
BofA maintained its buy rating on the stock and raised its price objective to $160 from $145.
Crocs shares were down 2.7% in Thursday trading.
Price: $132.52, Change: $-3.68, Percent Change: -2.70%