Crocs Inc's (CROX  ) management is likely focusing on keeping inventory clean against a softer wholesale backdrop, rather than trying to meet sales targets, in order to help protect margins, according to Bank of America Securities.

The Crocs Analyst: Analyst Christopher Nardone maintained a Buy rating, while reducing the price target from $140 to $135.

The Crocs Thesis: With shares down 14% from their peak following the company's first-quarter earnings release in May, the stock now prices in "a more cautious US wholesale environment," Nardone said in the note.

He lowering the full-year earnings estimate by 2% to $13.00 per share, versus consensus of $12.80 per share.

"There are a lot of moving parts but the key driver to our lower forecast is lower wholesale sales (both brands); this is partly offset by improving FX rates and a slightly better GM forecast," the analyst wrote.

Despite a worsening macro backdrop, Crocs should be able to achieve the earnings estimate due to its "margin defensibility," he further stated.

CROX Price Action: Shares of Crocs had risen by 0.81% to $139.06 at the time of publication on Thursday.