-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Crocs delivered Q1 adjusted EPS of $2.99 vs. $3.00 prior year, beating estimates by $0.22, while revenues of $921M declined 1.7% but exceeded estimates by $20M. The quarter showed strategic progress with DTC revenues growing 12.1% and Crocs International up 7.2% to $421.5M, now representing 55% of the brand's revenues, though HEYDUDE continued declining 12.3%. We are encouraged by the better-than-expected HEYDUDE guidance and believe the company still boasts the best margins in footwear trading at the lowest multiple in the space. Management raised full-year EPS guidance to $13.20-$13.75 from $12.88-$13.35, with the HEYDUDE decline improving to 7%-5% vs. 9%-7% previously. Adjusted gross margin compressed 90 bps to 56.9% while operating margin of 22.3% remains well-above peers despite a 150 bps decline. The international strength provides important tariff insulation, and shares trade at just 7x the midpoint of full-year guidance, declining 3% pre-market.