Jon Quast

It is very important that Target gets it figured out, stabilizes that.

They're in a weird place in the mindshare of the consumer.

Are we upscale?

Are we discount?

Nobody knows.

There are some things to work out.

I don't necessarily feel like it made the best choices here right now, but it's not a lost cause.

Yeah, I think it can.

And I think that the target stock price has already hit its low point.

Oh, all right.

Of these three companies that we're talking about, I believe that Crocs has the clearest path towards a comeback because it also has the clearest explanation of what has gone wrong.

Let me summarize it as quickly as I can.

In 2022, Crocs bought another shoe company called Hey Dude.

Sales growth was amazing for a period of time.

Then Crocs management overestimated the growth potential for Hey Dude, and it stuffed the wholesale channels full of Hey Dude merchandise.

Then, sales growth stalled, and now the company has had to work through bloated inventory at wholesale channels, and that is hurting both sales and profit margins.

It had to take a goodwill impairment charge, a significant one recently, too.

Yeah, and by a lot.

It took on debt to acquire HeyDude.

It's been paying that back down.