Despite incredible efficiency, strong revenue growth and the highest rates of return within the “Shores & Retail Apparel” market, Crocs has persistently been met with scepticism regarding whether the increased demand for their clogs and now casual shoes from HEYDUDE is a fad.
Fad’s typically last one season before fizzling out, we believe that these brands are built on a solid foundation with a loyal customer base that has supported revenue growth year on year for the past decade as earnings grew at a 35% CAGR.
This view was further supported by comments from Anne Melhman, Crocs CFO, who mentioned “we gained significant market share in a declining U.S. footwear market” on the latest quarter.
Table of Contents:
Business Model, Competitive Advantages & Growth
Market Concerns Post Earnings
Financials
Capital Allocation Strategy
Valuation & Expectations
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