In an unexpected turn of events, Crocs, the popular manufacturer of rubber clogs, has reported a staggering 30% drop in its shares after revealing an anticipated decline in sales. The company's forecast suggests a revenue decrease of approximately 10% for the quarter ending in August compared to the previous year, as fewer customers are stepping into Crocs stores.
"US consumers are exercising caution in their discretionary spending," said Crocs CEO Andrew Rees, reflecting on the changing landscape of shopper behavior. This financial downturn has driven Crocs’ share price to its lowest since 2021, marking the company's worst single-day drop in nearly 15 years.
Looking forward, Crocs foresees a "concerning" second half of the year attributed to the ongoing high cost of living and the potential ramifications of U.S. trade policies. CFO Susan Healy disclosed that tariffs could cost Crocs approximately $40 million (£29.8 million) for the remainder of 2025, but Rees remains optimistic about mitigating these impacts through supply chain cost savings.
The company has detected growing evidence of a cautious customer base, as foot traffic in stores decreases. "They are not making purchases, and store visits are declining," Rees elaborated on the matter.
In light of these challenges, Crocs is pulling back on discounting its products, a strategy that may further impact sales performance. With the upcoming football World Cup across the US, Mexico, and Canada, along with the anticipation of the 2028 Los Angeles Olympics, Rees noted a consumer shift back towards athletic products.
In spite of these hurdles, Crocs reported a second-quarter revenue of $1.1 billion, reflecting a modest 3% rise from last year. The company also owns the casual footwear brand HEYDUDE, acquired for $2.5 billion in late 2021.
"US consumers are exercising caution in their discretionary spending," said Crocs CEO Andrew Rees, reflecting on the changing landscape of shopper behavior. This financial downturn has driven Crocs’ share price to its lowest since 2021, marking the company's worst single-day drop in nearly 15 years.
Looking forward, Crocs foresees a "concerning" second half of the year attributed to the ongoing high cost of living and the potential ramifications of U.S. trade policies. CFO Susan Healy disclosed that tariffs could cost Crocs approximately $40 million (£29.8 million) for the remainder of 2025, but Rees remains optimistic about mitigating these impacts through supply chain cost savings.
The company has detected growing evidence of a cautious customer base, as foot traffic in stores decreases. "They are not making purchases, and store visits are declining," Rees elaborated on the matter.
In light of these challenges, Crocs is pulling back on discounting its products, a strategy that may further impact sales performance. With the upcoming football World Cup across the US, Mexico, and Canada, along with the anticipation of the 2028 Los Angeles Olympics, Rees noted a consumer shift back towards athletic products.
In spite of these hurdles, Crocs reported a second-quarter revenue of $1.1 billion, reflecting a modest 3% rise from last year. The company also owns the casual footwear brand HEYDUDE, acquired for $2.5 billion in late 2021.
