Crocs Shares Fall 18% Amid Heydude Struggles

Crocs shares plummeted over 18% following a disappointing earnings report, primarily due to the underperformance of its HeyDude brand, which is projected to see a 14.5% sales decline this year. Despite reporting third-quarter revenue of $1.06 billion, Crocs' overall growth forecast has been revised down to a 3% increase, compared to the previous estimate of 3% to 5%. CEO Andrew Rees acknowledged that the turnaround for HeyDude will take longer than anticipated, as the brand continues to struggle after its $2.05 billion acquisition in 2022. HeyDude's revenue for the quarter fell by 17.4% year-over-year, and the company is facing legal issues regarding customer complaints. Analysts had expected better performance from HeyDude, which further contributed to the negative market reaction. Although Crocs remains financially stable, the challenges with HeyDude have overshadowed its otherwise strong performance in the footwear market.