Casual footwear giant Crocs’ (CROX) stellar quarterly performance and innovative product collection have captivated investors. However, given that its signature clog is facing design infringement issues by copycat footwear, is the stock worth betting on now? Read on.Popular casual footwear manufacturer Crocs , Inc. (NASDAQ:CROX) has emerged as a leader in innovative core molded footwear, selling more than 720 million pairs of shoes in more than 90 countries internationally since its inception in 2002. Strong, worldwide, consumer demand for its brand, coupled with its plans to switch to sustainable materials and achieve net-zero emissions by 2030, has helped its stock gain 105.4% over the past year. However, the stock is trading 5.7% below its 52-week high of $136.50, which it hit on July 22. CROX is based in Niwot, Colo.
Although CROX’s stellar second-quarter earnings and sturdy digital sales growth have attracted investors’ attention, the stock’s valuation at its current price level could be concerning.
While its “Crocs Socks” debut should drive its revenues, given its brand momentum, recent news regarding the increasing sale of footwear that infringes on its trademarked designs could diminish its brand value.