Bank of America Estimates Crocs' North America Sales Growth and Franchise Performance
What happened
Bank of America estimates that Crocs, Inc. is expected to report a 7% decline in North America direct-to-consumer sales for the third quarter. However, the bank forecasts 5% underlying growth when excluding a revenue recognition change. This decline is expected to be partly offset by stronger wholesale sales, with the benefit expected to be greater in the fourth quarter.
Why it matters
Wholesale activity supports higher earnings expectations for Crocs, Inc. The estimates show that the shift in sales channels is expected to reduce reported North America direct-to-consumer growth by 12 percentage points over the next four quarters. Bank of America's underlying growth estimate of 5% is consistent with the first half of the year.
Wholesale activity supports higher earnings expectations for Crocs, Inc.
Who's involved
- Crocs, Inc.The casual footwear company whose sales growth is being estimated.
- Bank of AmericaThe financial institution providing the sales growth estimates and analysis.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Crocs, Inc.Speculative
Crocs, Inc. may see its financial outlook impacted by the decline in direct-to-consumer sales versus wholesale offsets.
Keep exploring
The entities involved
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Crocs, Inc.
American shoe company
Nothing else this week.
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Bank of America
American multinational banking and financial services corporation