Crocs shares fell 29.2% in trading on August 7 (US time), after the company warned that current quarter revenue could fall 9-11%.
The drop disappointed analysts who had expected a modest gain, and marked the steepest one-day drop since 2011, dragging the company's valuation to its lowest in nearly three years.
Crocs said it is under dual pressure from the Trump administration's new tariffs and changing consumer trends.
Crocs CEO Andrew Rees said the company is seeing “a lot of evidence” that North American consumers, especially the “considered” group, are becoming extremely cautious: “They’re not shopping, they’re not even going into stores. Traffic is down significantly.”
He described the business environment in the second half of the year as “concerning,” with orders from retail partners falling and consumer confidence weakening. Inflation, high interest rates, a cooling labor market and uncertainty around trade and tariffs have caused Americans to curb spending.
The company is also facing a hit from fashion trends. Once considered a symbol of “ugly” and comfort, Crocs have enjoyed a resurgence during the Covid-19 pandemic and even appeared on the red carpet at the 2021 Oscars.
But now, tastes are shifting. “Consumers are returning to sneakers , especially as events like the 2026 FIFA World Cup and the 2028 Los Angeles Olympics approach,” said Rees.
CFO Susan Healy estimates the new tariffs could cost Crocs $40 million in the second half of 2025 and as much as $90 million annually if it doesn’t adjust its supply chain. The HEYDUDE brand, which Crocs acquired in 2021, is being hit harder because of its import structure.
In response, Crocs said it is closely monitoring costs, reducing inventory and has suspended promotions since May to protect profits.
The company's second-quarter results showed a clear deterioration: Crocs reported a pretax loss of $448.6 million, a reversal from a profit of $296.4 million in the same period a year earlier, though revenue still rose slightly, 3.4%, to $1.1 billion.
Source: https://baovanhoa.vn/kinh-te/co-phieu-crocs-lao-doc-gan-30-vi-thue-quan-va-xu-huong-giay-xau-thoai-trao-159724.html
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