I'm long Crocs with an average cost basis of $110.
I think to invest intelligently, one needs to pay attention to the downside almost more than the upside. Obviously, given that I'm long the stock, I view the risk/reward favourably. But I think you should spend more time evaluating risks and/or downside.
Let's face it, HeyDude is a huge gamble. The "vibe" of the brand may mesh well with the "vibe" of Crocs, but the shoes are nowhere near as well-known.
The classic clog is arguably the most recognisable shoe on the planet. The fact that it evokes both love and hate generates awareness and heat. You can't say the same for HeyDude.
While the marketing team (especially Terrence Reily) is top notch, one has to be realistic and understand that there is a significant chance that investment into the brand and marketing may turn out to be a poor investment and not generate adequate returns.
The spectacular margins are now also under pressure from tariffs.
There is increased competition coming out of other brands such as Berkinstock who have released a direct competitor to the classic clog.
These are all very, very important considerations and should be incorporated into the thought process of evaluating the "moat" and likely outcomes for the stock.
Hi there, let’s see how today’s earnings report plays out.
Even without a turnaround for HeyDude, I believe the company is fundamentally strong. Acquiring them might have been a misstep, but my valuation is based on the current share price and the company's cash-generating ability.
As for Birkenstock, I don’t see them as a serious threat. They weren’t the first to imitate clogs, and low-cost knockoffs have been around for years—those would concern me more.
Regarding tariffs, Crocs doesn’t manufacture its own shoes but sources them from various countries. That gives them the flexibility to adapt their supply chain if needed.
I'm long Crocs with an average cost basis of $110.
I think to invest intelligently, one needs to pay attention to the downside almost more than the upside. Obviously, given that I'm long the stock, I view the risk/reward favourably. But I think you should spend more time evaluating risks and/or downside.
Let's face it, HeyDude is a huge gamble. The "vibe" of the brand may mesh well with the "vibe" of Crocs, but the shoes are nowhere near as well-known.
The classic clog is arguably the most recognisable shoe on the planet. The fact that it evokes both love and hate generates awareness and heat. You can't say the same for HeyDude.
While the marketing team (especially Terrence Reily) is top notch, one has to be realistic and understand that there is a significant chance that investment into the brand and marketing may turn out to be a poor investment and not generate adequate returns.
The spectacular margins are now also under pressure from tariffs.
There is increased competition coming out of other brands such as Berkinstock who have released a direct competitor to the classic clog.
These are all very, very important considerations and should be incorporated into the thought process of evaluating the "moat" and likely outcomes for the stock.
Hi there, let’s see how today’s earnings report plays out.
Even without a turnaround for HeyDude, I believe the company is fundamentally strong. Acquiring them might have been a misstep, but my valuation is based on the current share price and the company's cash-generating ability.
As for Birkenstock, I don’t see them as a serious threat. They weren’t the first to imitate clogs, and low-cost knockoffs have been around for years—those would concern me more.
Regarding tariffs, Crocs doesn’t manufacture its own shoes but sources them from various countries. That gives them the flexibility to adapt their supply chain if needed.