Crocs (NASDAQ:) stock fell more than 3% in Tuesday’s session after a note from Piper Sandler suggested the brand is losing favor with teens.
The firm released the findings from its 47th semi-annual Taking Stock with Teens Survey, which revealed more caution on Crocs.
The survey data showed that Crocs fell to the number seven favorite footwear brand spot from number six, mainly due to the popularity of UGG.
However, while mindshare was flat sequentially and actually increased by 30 basis points year-on-year, Crocs did lose 20 basis points of share year-on-year with upper-income teens who tend to be trend leaders in footwear.
“We also note that when we asked teens ‘what is a fashion trend that is on the way out?’, Crocs were the No. 3 ‘on the way out’ trend among male teens and No. 11 among female teens, which raises concern,” said analysts at Piper Sandler.
Meanwhile, Hey Dude was the eighth favorite footwear brand, down from seventh in the Fall, losing 20 basis points of mindshare sequentially but gaining 15 basis points of mindshare year-over-year.
“While the Crocs brand maintained overall mindshare and grew mindshare with all teens, we think the weakness among upper-income teens could signal that we are close to the top of the Crocs trend cycle,” analysts at Piper Sandler concluded.