11:28 AM EDT, 06/30/2025 (MT Newswires) -- Crocs ( CROX ) is on track to deliver fiscal 2025 earnings per share of $13, supported by resilient margins, BofA Securities said Monday in a report.

The stock trades at a low price-to-earnings ratio, and this valuation looks attractive given expectations for low- to mid-single-digit total sales growth and an operating margin of 22.5% to 23% over the next two to three years, the report said.

BofA reduced North America wholesale forecasts for Crocs ( CROX ) by 7% and for the Heydude brand by 18%, citing management's focus on maintaining clean inventory levels over pushing volume. Direct-to-consumer channels are expected to remain modestly positive with strength in international sales, the report said.

BofA expects a potential $83 million increase in cost of goods sold due to 10% universal and 55% China tariffs, while mitigation options and a cost-savings plan may counter some pressure.

BofA reduced the price target on Crocs ( CROX ) stock to $135 from $140 and reiterated its buy rating.

Price: 102.11, Change: -0.91, Percent Change: -0.88