Crocs Inc CROX:NASDAQ

Last Price$54.01NASDAQ Previous Close - Last Trade as of 4:00PM ET 5/20/22

Today's Change-0.27(0.50%)
Bid (Size)$53.24 (6)
Ask (Size)$54.55 (1)
Day Low / High$51.54 - 55.85
Volume2.0 M

Crocs' Acquisition of Hey Dude to Be 'Immediately Accretive' to Earnings, Will Allow Diversification, B. Riley Says

3:22PM ET 12/27/2021 MT Newswires
Crocs' (CROX) acquisition of casual footwear brand Hey Dude is expected to be "immediately accretive to earnings" and will also allow the clogs maker to diversify into larger footwear markets, B. Riley said in a research note emailed Monday.

Crocs said Thursday it agreed to buy Hey Dude for $2.5 billion. The company said it would pay $2.05 billion in cash and $450 million in Crocs shares issued to Hey Dude CEO Alessandro Rosano. The deal is expected to close in Q1 2022, Crocs said.

B. Riley said the deal would allow Crocs to further diversify out of clogs and into other casual products such as boat shoes and sneakers. The analysts noted that the casual footwear market is estimated to be worth around $125 billion, compared with $8 billion for the clog footwear market.

The analysts said they are still positive on Crocs shares due to strong demand for their core products and are estimating $1.00 per share in accretion to FY 2022 earnings per share due to the acquisition.

B. Riley has a buy rating and $174 price target on Crocs.

Price: 126.66, Change: +3.13, Percent Change: +2.53