Crocs downgraded to Neutral from Buy at B. Riley

B. Riley downgraded Crocs to Neutral from Buy with a price target of $101, down from $125. Based on its analysis of public footwear distribution and content companies, the firm estimates roughly $2.4B, or 16% too much, footwear inventory in stores, warehouses, and direct channels into the back-to-school and fall selling seasons. As such, the analyst thinks the sales cadence of footwear/apparel/accessories will likely slow or turns negative year-over-year on a nominal basis in September through the remainder of 2023. Riley believes the current footwear and slowing consumer backdrop will likely prove “too challenging and clogged” for Crocs to avoid downward earnings revisions.