12:16 PM EDT, 06/30/2025 (MT Newswires) -- Crocs' ( CROX ) fiscal 2025 earnings are likely to take a hit from weak US wholesale revenue amid a worsening macro backdrop, BofA Securities said Monday in a note.

The brokerage lowered the shoemaker's full-year earnings-per-share forecast to $13 from $13.26, compared with the consensus estimate of $12.80.

BofA lowered 2025 wholesale estimates of Crocs North America and Heydude, now showing declines of 7% and 18%, respectively. The brokerage, however, continues to forecast "modest" direct-to-consumer growth in North America for both brands.

"There are a lot of moving parts but the key driver to our lower forecast is lower wholesale sales (both brands); this is partly offset by improving (foreign exchange) rates and a slightly better (gross margin) forecast," BofA analyst Christopher Nardone wrote.

BofA trimmed its price target on Crocs ( CROX ) to $135 from $140, while reiterating its buy recommendation given the stock's "attractive" risk-reward profile.

"(Management) has made it clear that they would rather miss sales and have clean inventory to help preserve margins," Nardone said. "We interpreted this as a softer wholesale backdrop and think (management) is trying to keep the channel clean and give retailers optionality to chase product (versus) adding too much supply to the market."

The impact of tariffs is currently "manageable," but the focus is on Vietnam, which accounts for 47% of Crocs' ( CROX ) imports, according to the BofA note.

The brokerage raised EPS estimates for 2026 and 2027 to $13.57 and $14.71, respectively, from $13.38 and $14.43.

Price: 101.32, Change: -1.70, Percent Change: -1.65