Crocs Inc. saw its share price plummet by 30%, hitting a three-year low of $73, after the company reported a steep drop in U.S. sales and warned of a challenging second half of the year. The rubber clog-maker attributed the decline to a combination of economic pressures, shifting consumer behavior, and mounting concerns over US tariffs.
The company, which rose to prominence during the COVID-19 pandemic as a stay-at-home staple, is now facing a sharp consumer pivot toward athletic footwear in the lead-up to the 2026 FIFA World Cup and the 2028 Los Angeles Olympics.
“There is a clear athletic trend emerging ahead of next year’s football World Cup in the US, Mexico, and Canada, and the 2028 Los Angeles Olympics,” said Crocs CEO Andrew Rees. “North American consumers are buying into that trend.”
Crocs’ US sales declined 6.5% between April and June, dragging down overall performance despite a 3.4% increase in global revenue, which reached $1.1 billion during the three-month period ending June 30. The company posted a \$448.6 million pre-tax loss, a stark reversal from its $296 million profit during the same period last year.
Rees said US consumers are being “super cautious” due to the high cost of living and uncertainty surrounding the potential return of tariffs under former President Donald Trump’s policies.
“They’re not purchasing, they’re not even going to the stores, and we see traffic down,” he said. “Our low-end consumer is most sensitive to increases, is most nervous, and in some cases, is not leaving the house.”
He further explained that Crocs appeals to a “particularly broad consumer base,” but acknowledged that other brands are outperforming Crocs in the current environment “because they are focused exclusively on a high-end consumer.”
Concerns over trade policies are also weighing heavily on consumer sentiment. Rees warned that potential Trump-era tariffs could disproportionately impact Crocs’ price-sensitive base.
“These people are not buying new Crocs because they’re worried about how their personal finances will be affected by President Donald Trump’s sweeping tariffs across imports to the U.S.,” he said.
Susan Healy, Crocs’ Chief Financial Officer, confirmed that the company expects a \$40 million hit for the remainder of 2025 due to the tariff threat. However, Rees maintained some optimism about longer-term solutions.
“I think we can over the medium-term mitigate the impact of tariffs. That will come from cost savings in our supply chain,” he said.
As part of its strategy, Crocs also confirmed that it will continue pulling back on discounting, though it warned this could further dampen sales in the near term.
Despite the downturn in North America, Crocs is seeing better performance in China — a market where many global retailers are struggling.
“In China, where consumer purchasing is not strong, Crocs is bucking that trend,” Rees said.
He credited the success to a robust digital marketing campaign driven by key Chinese influencers and celebrities. “That brand heat has been driven by a set of social-first digital marketing tactics using key Chinese celebrities,” he said.
Crocs is collaborating with three major Chinese influencers — Liu Yuxin, Tan Jianci, and Bai Lu — and recently launched a partnership with designer Simone Rocha. The collaboration includes a line of sparkly Crocs, notably worn by actress Michelle Yeoh, which have generated buzz in the Chinese market.
Despite international growth, Crocs warned of a “concerning” second half of 2025 as it continues to navigate global economic headwinds and cautious consumer spending. The latest financial results mark the company’s worst single-day stock drop in nearly 15 years.
Crocs also owns the casual footwear brand HEYDUDE, which it acquired in a \$2.5 billion deal in 2021. The performance of HEYDUDE was not broken out in the current earnings report.
Looking ahead, Crocs says it remains committed to weathering the turbulence and honoring its broad customer base — but acknowledged that the path forward may not be smooth.
“The environment is tough,” Rees concluded, “but we’re focused on maintaining brand relevance, managing cost efficiency, and staying connected to our consumers globally.”
Boluwatife Enome
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