Crocs (CROX) Management Meeting Hints Jibbitz Hits Revenue Goal, 4 Years Early - Piper Sandler
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Piper Sandler analyst Erinn Murphy reiterated an Overweight rating and $215.00 price target on Crocs (NASDAQ: CROX) after hosting investor meetings with CFO, Anne Mehlman, who instilled confidence in underlying gross margin drivers with mix to Jibbitz, pricing & clogs balanced by offsets including airfreight & input costs.
The analyst stated "the company could achieve its 2026 Jibbitz goal of >$230M by 2022; even with more conservative assumptions in the outer years, EBIT margins could outperform our model by 150-200 bps (with elevated air freight)". "As a reminder, the company took up pricing in DTC at the beginning of the year in NA and in some markets in EMEA. For wholesale, these pricing increases just started to roll through in Q3, so we see 3 more quarters of uplift to underlying GM from 2021's price increases. Mgmt believes it still has select pricing opportunity in Europe/Asia in 2022. Mgmt has confidence in underlying gross margin drivers with mix to Jibbitz, pricing & clogs (mgmt expecting 2022 demand to remain strong) as positives balanced by offsets including airfreight & input costs (in the plan)."
Shares of Crocs closed at $151.88 yesterday.
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