Crocs: Declining sales and the burden of tariffs

Explaining Crocs' success, CEO Andrew Rees needs just two sentences: »Some people hate us, and some love us. We just had to make sure more people loved us than hated us.« And it worked – celebrities often pay up to $850 for a pair. But now, the company is feeling the effects of weakening U.S. consumer demand and suffering under Donald Trump’s import tariffs. In a single day, the U.S.-based maker of the iconic foam clogs lost nearly 30 percent of its market value.

The stock plunge was triggered primarily by a surprise forecast of a 9-11 percent revenue decline in the current quarter, reported t-online. During an analyst call, Rees noted that U.S. consumers are cutting back on discretionary spending.

Crocs expects to take a $40 million hit in the second half of the year due to Trump’s tariffs. Rees warned that fears of price hikes could further dampen consumer enthusiasm. At the same time, he anticipates that major events like the 2026 FIFA World Cup and the 2028 Los Angeles Olympics could boost demand for traditional athletic shoes, potentially overshadowing Crocs’ casual appeal.

After closing the trading day down 29.24 percent, shares rebounded slightly in after-hours trading, gaining around 3 percent. In its latest quarter, Crocs – which also owns the Heydude brand – posted a 3.4 percent revenue increase year-over-year, reaching $1.15 billion. However, the company reported a net loss of $492 million, largely due to a goodwill impairment charge related to Heydude. By comparison, the same quarter last year saw a profit of $229 million.

MK