Tyler Crowe: [ Shopify 's] earnings and conference call had two very different reactions. This is Motley Fool Money. Welcome to Motley Fool Money. I'm Tyler Crowe. Today, I'm joined by longtime Fool contributors, Matt Frankel and Jon Quast. We got a pretty good show today. We're going to talk about Moderna's recent I'll say challenges with the FDA approval on some of its flu vaccines. We'll do our normal Thursday thing where we do stocks on our radar. But we wanted to open today's show with Shopify's up and ...

Core Insights - Crocs shares surged nearly 20% following the release of its fourth-quarter results, which exceeded Wall Street estimates despite a year-over-year decline in revenue and earnings per share [1][1][1] Financial Performance - The company reported revenue of $958 million and adjusted earnings per share of $2.29, both lower than the previous year but above analyst expectations [1][1][1] - Wholesale revenue fell over 14%, while direct-to-consumer revenue grew nearly 5% [1][1] - International sales increased by 14%, whereas North American sales declined by approximately 7% [1][1] Future Outlook - Crocs anticipates first-quarter revenue to decline by 3.5% to 5.5% year-over-year, with adjusted EPS projected between $2.67 and $2.77, aligning closely with analyst estimates [1][1] - For the full year, the company forecasts sales to either decline by 1% or show slight growth, with adjusted EPS expected between $12.88 and $13.35, both better than consensus estimates [1][1] Cost Management - The company has identified approximately $100 million in potential cost cuts for the year to enhance efficiency while continuing to invest in its brand and products [1][1] - Crocs previously cut $50 million in costs in the first half of the previous year due to concerns over tariffs affecting sales and margins [1][1]

Crocs, Inc. (CROX) shares surged 19.83 percent, gaining $16.41 to $99.14 on Thursday even after the company reported a decline in fourth-quarter earnings and revenue compared with last year.Net income for the quarter came in at $105.17 million, or $2.03 per share, down from $368.91 million, or $6.36 per share, in the prior-year period. On an adjusted basis, earnings totaled $118.29 million, or $2.29 per share. Revenue slipped 3.2 percent to $957.64 million from $989.77 million a year earlier.The stock open ...

Williams Trading analyst Sam Poser has reduced estimates for Crocs Inc. ahead of the shoe firm’s fourth quarter earnings report on Thursday. The Wall Street consensus is adjusted diluted earnings per share (EPS) at $1.91 on revenue of $917.1 million. Poser believes Crocs’ EPS will be within company guidance, but still miss the current consensus estimates. More from WWD When Crocs reported third quarter results on Oct. 30, the company estimated fourth quarter EPS in the range of $1.82 to $1.91. Poser es ...

Core Insights - Crocs, Inc. (CROX) is experiencing significant tariff-related pressures impacting its quarterly performance, with an adjusted gross margin of 58.5%, reflecting a 110-basis point decline year over year, primarily due to tariffs weighing on margins by 230 bps [1][8]. Group 1: Financial Performance - In fiscal 2025, Crocs achieved $50 million in gross cost savings, which provided some relief against external cost pressures [2]. - The company has identified an additional $100 million in incremental gross cost savings expected to benefit fiscal 2026, focusing on simplifying organizational structure and optimizing the supply chain [2]. - The Zacks Consensus Estimate indicates a year-over-year earnings decline of 7.9% for the current year, with a projected growth of 3.9% for the next year [9]. Group 2: Strategic Initiatives - Crocs is maintaining a disciplined approach to managing its adjusted SG&A base to drive operating leverage in fiscal 2026, enhancing flexibility across the profit and loss statement [3]. - The company is benefiting from supply chain efficiencies due to years of investment and deeper integration of the HEYDUDE and Crocs supply chains, leading to operational improvements and cost advantages [4]. Group 3: Market Position - Crocs' shares have declined by 20.3% over the past six months, compared to the industry's decline of 9.9%, and currently holds a Zacks Rank of 3 (Hold) [5]. - From a valuation perspective, CROX trades at a forward price-to-earnings ratio of 7.05X, significantly lower than the industry average of 17.76X [7].

Chipotle - Chipotle's stock has fallen 51% from its high in 2024, with negative same-store sales reported [1] - The company opened about 200 new locations, but average unit volumes have dropped by approximately 3%, which is unusual for Chipotle [2] - Chipotle has a strong financial position, earning $1.5 billion in net income over the past year and holding $1.8 billion in cash with no debt other than lease liabilities [3] - The company is investing in menu innovation and has seen success with limited-time offerings, which encourage repeat visits [5] - Approximately 40% of Chipotle's sales come from households earning under $100,000, a demographic currently facing inflationary pressures [5] - Chipotle plans to open 350-370 new restaurants in 2026 and is focusing on international expansion [5] - The stock trades at a price-to-earnings (P/E) ratio of 30, down from 70 in mid-2024, indicating a significant valuation adjustment [6][7] Target - Target's stock is down 46% over the past five years, with inconsistent same-store sales performance [10] - The stock trades at a low forward P/E ratio of around 11, but the company maintains strong fundamentals, including an A credit rating and nearly $5 billion in cash [10] - Target is facing challenges related to consumer backlash and competition from rivals like Walmart, impacting its market share [10] - A new CEO, Michael Fidelki, is set to implement a multi-year plan to reinvigorate private label brands and key discretionary categories [11] - Target aims to drive over $15 billion in revenue growth over the next five years, but significant changes are needed for this to materialize [11] - The market is skeptical about Target's growth potential, reflected in its high dividend yield of about 5% [14] Crocs - Crocs' stock is down 23% over the past year, trading at just seven times forward earnings estimates [19] - The company faced challenges after acquiring Hey Dude, leading to bloated inventory and a goodwill impairment charge [19][21] - Despite domestic sales softness, Crocs is experiencing strong double-digit growth in international markets [25] - The brand maintains strong margins and is actively managing its capital structure, including share repurchases [21] - Crocs has successfully engaged in high-profile collaborations, which have helped revitalize its brand image [23]

Core Viewpoint - Investors are currently overlooking value stocks like Crocs, which is trading at a low price relative to its earnings potential, as the focus shifts towards growth stocks, particularly in the AI sector [1] Company Overview - Crocs is trading at its lowest cash-flow multiple in five years, making it a potential value stock before 2026 [2] - The current stock price is $84.98, with a market cap of $4 billion and a gross margin of 59.08% [3] Financial Performance - Revenue for Crocs declined 3% year over year last quarter to $836 million, with the HeyDude brand down 22% to $160 million [4] - Crocs' trailing twelve-month revenue has been around $4 billion but is currently declining [4] - The stock is in a 56% drawdown, indicating a significant decline from its previous highs [5] Growth Opportunities - International revenue increased 6% last quarter to $389 million, indicating growth outside of North America [6] - Crocs has a free cash flow per share of $12.77, with a trailing price-to-free cash flow ratio below 7, suggesting a discounted valuation [7] Shareholder Returns - Management is accelerating share repurchases, which will enhance long-term growth in free cash flow per share and potentially drive the stock price higher [8] - Shares outstanding have decreased by 20% over the last five years, indicating a commitment to returning capital to shareholders [8] Market Position and Future Outlook - Crocs is currently trading at just over 6 times its trailing cash flow, with investors pricing in expectations of declining revenue [10] - The brand has a history of staying relevant and is now expanding globally, which could lead to a turnaround in revenue and cash flow [11] - If Crocs can regain growth, the stock may trade at a higher multiple, presenting a low downside risk with significant upside potential for investors [12]

Core Viewpoint - Crocs Inc. shares increased by 5.2% to $89.07 after surpassing Wall Street's third-quarter expectations, despite forecasting a revenue decline for the fourth quarter [1]. Financial Performance - For Q3, net income decreased by 27.0% to $145.8 million, or $2.70 per diluted share, compared to $199.8 million, or $3.36, in the same period last year [2]. - Adjusted diluted EPS for Q3 was reported at $2.92, exceeding Wall Street's expectations of $2.36 [3]. - Revenues fell by 6.2% to $996.3 million from $1.06 billion year-over-year [2]. Revenue Breakdown - Direct-to-consumer (DTC) revenue increased by 1.6%, while wholesale revenue declined by 14.7% [2]. - For the nine months, revenues decreased by 0.9% to $3.08 billion from $3.11 billion in the previous year [3]. - In Q3, DTC revenues rose by 2.0% to $472 million, while wholesale revenues fell by 7.9% to $364 million [6]. Future Guidance - The company projected adjusted fourth-quarter diluted EPS in the range of $1.82 to $1.92, better than the $1.75 consensus estimate [4]. - Revenue for the fourth quarter is expected to decline by 8% compared to the previous year, with Crocs brand revenues down 3% and Hey Dude brand revenues forecasted to drop mid-20% [4]. Strategic Actions - The CEO highlighted that the third-quarter performance was driven by disciplined execution and innovation, allowing the company to repurchase 2.4 million shares and pay down $63 million in debt [5]. - The company aims to regain momentum in the marketplace for both brands [6].

Core Insights - Crocs, Inc. (NASDAQ: CROX) is considered undervalued in the value investing community, trading at a forward P/E of 7.55x, with gross margins consistently above 60% and strong cash reserves [1] Company Analysis - The company is recognized for its solid business model and strong balance sheet, making it an attractive investment opportunity [1] - Crocs has demonstrated sustainable growth, which aligns with the principles of long-term value investing [1] Market Perspective - The stock market is characterized by a focus on intrinsic value rather than short-term fluctuations, which is a key aspect of the investment approach towards Crocs [1]

Market Performance in China - Crocs is thriving in China while other major U S brands are losing ground [1] - WSJ visited a Shanghai store to investigate Crocs' success [1]