Which Footwear Stock is a Better Buy? By StockNews

Rising consumer spending and a robust digital presence should enable footwear companies to continue recovering from pandemic-led damages. Based on recent developments and collaborations, popular footwear brands Crocs (NASDAQ:) and Designer Brands (NYSE:) should benefit from the industry’s recovery. But let’s find out which of these stocks is a better buy now. Read on.Niwot, Colo.-based Crocs, Inc. (CROX) and Designer Brands, Inc. (DBI) in Columbus, Ohio. are two popular retail footwear companies. CROX produces soft, lightweight, non-marking, slip-and-odor-resistant shoes made from closed-cell resin material. It sells its products through wholesalers, retail stores, e-commerce sites, and third-party marketplaces. DBI offers an assortment of brand-name dresses, casual and athletic footwear through wholesale, First Cost, and direct-to-consumer e-commerce sites. In addition, both companies provide accessories for women, men, and children.

As consumer spending rebounds with improvement in the job market, companies in the footwear industry are striving to launch flexible, casual, and eco-friendly product lines to keep pace with changing consumer trends. Because of a strong e-commerce presence and increasing foot traffic in stores with the economy’s reopening, U.S. fashion footwear sales rose 7% year over year to $2 billion during the first quarter of 2021. The global footwear market is expected to grow at a 1.8% CAGR to $341.27 billion in 2026.

While DBI gained 51.5% over the past year, CROX surged 79%. In terms of their performance so far this year, CROX is a clear winner with 109.5% gains versus DBI’s 88.1%. But, which of these stocks is a better pick now? Let’s find out.

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