Crocs (NASDAQ:CROX) likely needs no introduction as the Colorado-based company that distributes the famed clog shoe. The shoe has grown into something of a fashion punchline, but it has remained a popular choice for consumers.
Shares of Crocs stock has dropped 9.9% in 2019 as of close on July 24. The stock got off to a hot start but has retreated sharply over the past month.
The company showed some improvement with the release of its first quarter 2019 results in May. Regardless, shares suffered a post-earnings dip that has lasted into the summer. Investors reacted negatively to a slight downgrade in its 2019 revenue outlook due to currency charges and store closures.
Earlier this month Crocs announced a footwear collaboration with Vera Bradley. This collaboration will incorporate Vera Bradley’s distinct flare with the usual Crocs clog options.
Crocs’ popularity has surged among teens into 2019, and it stands to reason that some style tweaks have the potential to bump up its promotion to younger demographics. Fashion insiders credit the rise of so-called "ugly products" that have an ironic appeal.
Crocs stock is now trading close to the middle of its 52-week range. However, shares had an RSI of 72 as of close on July 24. This puts Crocs in technically overbought territory.
The company is set to release its second quarter 2019 results on August 1. I like Crocs stocks for the remainder of 2019 but more patient investors may want to wait for a better price point to buy this summer.
Related Stories
