Crocs (CROX) PT Cut to $8 at Piper Jaffray Amid Weak Q2, Outlook

Piper Jaffray analyst Erinn Murphy lowered estimates and her price target on Crocs (NASDAQ: CROX) to $8.00 (from $10.00) following weak Q2 results and guidance. The firm maintained a Neutral rating.

Murphy commented, "We remain on the sidelines on CROX following Q2's report in which revenue was $324M, down 6% Y/Y and handily below our $348M. The miss was largely concentrated in the wholesale where Q2 sales were $165.6M vs. our estimate of $195M. Slower at-once orders in North America and ongoing distributor issues in China were the major culprits of the miss while global DTC comps were up 2.9%. E-com growth was up 19.5%. April was the strongest month of the quarter and trends decelerated throughout the quarter. Q3 sales are now forecasted down 9% Y/Y at the mid-point of $245M-$255M--below our $289M estimate. We are lowering our estimates and reducing our PT from $10 to $8. While new product trends and retailer response for SS17 sounded better, the fundamentals of the business currently are not yet in sync and we believe shares remain in a show-me situation."

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 $11.00 yesterday.

You May Also Be Interested In

• Incyte (INCY) PT Raised to $105 at Truist Securities
• Regenxbio Inc. (RGNX) PT Raised to $32 at Baird
• Eledon Pharamceuticals (ELDN) PT Raised to $7 at Leerink