Hello everyone!
So today was a challenging day day for our portfolio, being the largest 1 day drop we've had since I joined eToro. While it might look bad it's important to look at with with some perspective, this move brings us back to the levels we were in early July, so the overall impact is really not that big.
Now let's take a deeper look at what happened: $CROX (Crocs Inc) reported earnings.
The report had two key parts, one that looks bad but isn't, and one that is a genuine concern.
The first number that caught my attention was a loss per share of $8.82. This loss was caused by a one time asset impairment of $773 Mn related to HEYDUDE.
In simple term: The company is stating, "We overpaid for HEYDUDE, and it's not worth what we recorded on our balance sheet."
This is not a real loss, it's just a change in the balance sheet, and in fact it should imply that $CROX will pay less taxes in coming quarters. So it's actually of no concern to us.
If we remove this paper loss, the adjusted EPS were actually $4.23, an increase of 5.5% YoY.
Now to te real issue: The guidance.
Revenue is expected to decline by around 10% in Q3 and margins are expected to contract from 27% to around 18%.
So what are we doing? For now we are holding our position, while guidance was bad the business is still generating a lot of cash and doing a lot of buybacks. I think it's more likely than not that the business will stabilize at some point next year and if they keep doing aggressive buybacks there is no need for growth to justify todays valuation.... Show More
Ni caso a los comentarios negativos, Pedro. Si llevas 3 años consecutivos con ganancias por encima del 20% y el actual muy cercano a pesar de la caída de crocs, es porque sabes lo que haces. Sigue así y gracias :)... Show More Translate
Hmmm, it seems very risky to concentrate 73% of the portfolio in two positions, not to say in two bets.
The question is in a downturn due to company specific reasons when to sell. At -10 , -30, -50%....
The Crocs share is cheap but it's also not growing. The EbitDa is even decling slightly. ... Show More
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Sun Nov 09 2025 21:33:40 GMT+0000 (Coordinated Universal Time)
