Even as its stock surged early this year, a revenue increase amid the pandemic, and a promising projection of 20-25% revenue growth for 2021, Crocs, Inc. faces junk bond status.
Moody’s recently downgraded the American foam clog company to BB- status on the premise that Crocs has solely relied on a single product and is unable to leverage the advantage of product diversity.
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Since Crocs has strong contenders in the same industry, the company appears to be in a vulnerable position and may face a competitive threat in the not-so-distant future with no alternate product to fall back on.
The downgrade came as the company recorded the most success in its history. Crocs recorded a 750% increase in sales in October and Novemb…