Crocs (CROX) PT, Estimates Trimmed at Susquehanna

Susquehanna analyst Sam Poser trimmed estimates and his price target on Neutral-rated Crocs (NASDAQ: CROX) to $8.00 (from $8.50). Poser said while the product offerings have improved, there is too much that is unknown to get constructive at this time.

Poser commented, "Early last week, CROX management presented new product in their showroom at the FFANY shoe show. CROX is reinvigorating its core clog style and sandal silhouettes, both of which have received positive feedback from retailers. However, we are skeptical that these styles can drive large incremental growth in sales. CROX is also evolving its product range and introducing new silhouettes, such as lace-ups and slip-ons. While we believe the slip-on will resonate with the Crocs' consumer, we think CROX will face challenges trying to sell a lace-up sneaker. We contend that CROX DNA is in fun, easy-to-wear, slip-on footwear. Although management appears upbeat on the new lace-up casual sneaker with a suggested retail of ~$50, we do not believe that the Crocs' consumer is looking for a lace-up. Why not offer elastic laces and a gore, so the shoe can look like a lace-up, but actually be a slip-on? Additionally, competition within the casual, lace-up category is fierce with Sketchers dominating the $50-$70 price range in this category."

For an analyst ratings summary and ratings history on Crocs click here. For more ratings news on Crocs click here.

Shares of Crocs closed at $7.37 yesterday.

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