Crocs has had other successful partnerships, including with Post Malone, Vera Bradley, and Kentucky Fried Chicken
Shares of Crocs (CROX) are on the rise on Thursday after Justin Bieber shared a picture of a pair of Crocs clogs floating in a pool on Instagram with a caption saying "Soon." Susquehanna analyst Sam Poser expects a collaboration with the singer to launch in "Croctober," and add to the acceleration of Croc's brand momentum.
JUSTIN BIEBER COLLABORATION: On Thursday, Justin Bieber shared a picture of a pair of orange Jibbitz clad Crocs' Classic Clogs floating in a pool on his Instagram account with a caption saying "Soon." Susquehanna analyst Sam Poser expects the collaboration to launch in this month, "Croctober," and add to the acceleration of Crocs' brand momentum. The analyst acknowledged that he is unsure how many pairs will be available under a deal with the singer, but the Bieber collaboration, which he has been anticipating for some time, should "draw more people to Crocs."
Crocs has had great success with collaborations with Post Malone, Bad Bunny, Carrots, Pleasures.com, Chinatown Market, Vera Bradley, Luke Combs, Kentucky Fried Chicken (YUM), ruby rose, Yang Mi, Beams, and others, Poser noted, adding that he expects the Justin Bieber collaboration to lift Crocs "into another dimension." The analyst also pointed out that the orange color of the Classic Clog reflects the signature color of Bieber's Drew apparel line.
ACCELERATED GROWTH: Crocs has performed well during the pandemic with "at home" trends driving greater mindshare for the brand, B. Riley Securities analyst Susan Anderson told investors in a research note on Thursday. The analyst noted that this, coupled with successful collaborations, has expanded the brand to more consumers, which will drive "accelerated growth for several years" beyond the pandemic. Anderson estimates Crocs could reach a high-teens EBIT margin by fiscal 2025 on revenues of almost $1.9B, yielding earnings per share power of almost $4. The analyst reiterated a Buy rating on the shares with a $50 price target.
PRICE ACTION: In afternoon trading, shares of Crocs have gained over 10% to $47.15.