Currently I have no holdings in Crocs but I have been a loyal customer for years and after checking latest AFS I believe they are in a solid financial position with good cash flows, decent customer loyalty and in my opinion a pretty good product.
The stock it's trading at what seems like an attractive price so I am tempted to buy some for a long term holding but before doing so I would like to gather some feedback and see what the community thinks about it.
Posted by Ilalu
6 Comments
Bag holder here, please buy
I think there are better options to put your money in
I love the company (I only wear Crocs in the past 5 years), bought the stock, and it underperformed the market and I see it continuing to do so.
The Heydudes acquisition is diluting shareholder value, North America sales trends are soft, and the gross margin profile is impaired by tariffs. You could time the market for an inflection, but you’ll be missing out on other stocks that run up & compound if you miss the timing.
I don’t like buying fashion or clothing companies but if you really like them and think there isn’t a concern of going out of style or some other trend taking over I’d say it sounds good
Personally I’d stay away. Fashion is fickle and competition is ultra competitive. It’s just very hard to judge the winners and find the companies who will do well here imo. Unless you follow fashion trends consistently, this sector is very tough imo.
You have to time most fashion companies. They’re not really natural compounders like other companies imo.
I don’t really follow this industry but that’s just my opinion from an outsider’s perspective.
there are so many stocks which can make u more money even thou u might think they are overvalued (tech ai etc) coz they just keep going up.. and yet u want to choose “undervalued” fashion stks which just keeps going down. just skip these lulu, crocs, onon etc..
can u imagine..We are in a bull mkt & its dead, if we are in a bear market its gonna RIP.
It has to have accelerating growth to rerate… when you make ugly fashion, your multiple will always be depressed unless the market has really good reason to think otherwise… even if the balance sheet, ratios and buybacks hypothetically look great and valuation limits downside…