Key Points
In 2025, several prominent fashion brands are facing challenges, with Crocs (NASDAQ: CROX) leading the pack after a disappointing $2.05 billion acquisition of HeyDude, which has led to a $737 million impairment charge. HeyDude’s Q2 2025 revenue was $190 million, a 3.9% year-over-year decline, while Crocs reported $960 million in revenue, a 5% increase. However, management anticipates a revenue drop of 9% to 11% in Q3.
Kontoor Brands (NYSE: KTB), which owns denim brands Lee and Wrangler, reported a Q2 2025 revenue of $658 million, up 8% year-over-year. The company expects full-year revenue between $3.09 billion and $3.12 billion, reflecting a 19-20% increase. Lululemon (NASDAQ: LULU) experienced a 47% stock drop in 2025, despite reporting $2.4 billion in Q1 revenue, a 7% year-over-year increase, but facing a 2% decline in net income.
Kontoor’s dividend is highlighted, paying $0.52 per share for a 2.7% yield, and analysts anticipate a dividend increase in October. Lululemon is aggressively repurchasing shares, having spent $430 million on buybacks recently. Currently, Lululemon trades at a forward P/E ratio below 14, a historical low, suggesting potential value despite recent struggles.
