Will Hey Dude Help Crocs Reach $5 Billion in Sales by 2026?

Crocs made its largest acquisition to date last week when it inked a deal to acquire the privately-owned footwear brand Hey Dude. The deal is valued at $2.5 billion and expected to close in Q1 of 2022. While Hey Dude is privately owned, Crocs pointed out the company’s impressive growth in revenue and profits in recent years. 43% of Hey Dude’s sales are currently online and the brand projects $570 million in revenue in 2021. Crocs is confident that Hey Dude will help contribute to its recent revenue growth and align with its previously stated goal to help Crocs achieve $5 billion in sales by 2026. Crocs plans to make Hey Dude a $1 billion brand by 2024. While executives seemed confident in achieving these goals, investors initially appeared more hesitant. In the wake of the announcement on Thursday, shares of Crocs dropped close to 12%, suggesting concern and uneasiness. However, some analysts eased investor fear and projected strong results from the acquisition. Williams Trading analyst Sam Poser said in a recent note that despite the reactive stock drop, the deal “will prove very accretive” to Crocs. He attributed the initial stock drop to a general investor unawareness for the Hey Dude Brand, which he said

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