Crocs Shares Nosedive as Cautious U.S. Shoppers Cut Back on Spending
Shares in Crocs tumbled by nearly 30% on Thursday, marking the brand’s worst single-day drop in almost 15 years, as the American footwear maker flagged a sharp downturn in consumer demand.
The company now expects revenue for the third quarter – ending in August – to decline by around 10% year-on-year. Crocs attributed the forecast to a slowdown in U.S. retail traffic, noting that fewer shoppers are visiting its stores or purchasing non-essential items.
“We’re observing more conservative spending patterns among U.S. consumers, especially around discretionary purchases,” said CEO Andrew Rees.
The stock slump has dragged Crocs’ share price to its lowest point in nearly three years. Executives also voiced concerns about the broader retail outlook for the rest of 2025, citing persistent cost-of-living pressures and potential fallout from tariff-related trade policies.
Susan Healy, the company’s Chief Financial Officer, revealed that tariffs could cost the company an estimated $40 million over the remainder of the year. Despite this, Rees believes the company can offset the impact through supply chain cost efficiencies over time.
In addition to sluggish store visits, Crocs noted a shift in consumer preferences toward athletic footwear, a trend expected to continue ahead of major global sporting events such as the 2026 FIFA World Cup and the 2028 Summer Olympics in Los Angeles.
Although Crocs posted a 3% revenue increase in the second quarter, bringing in $1.1 billion, the company plans to scale back discounting – a move that may further weigh on sales in the coming months.
Crocs also owns HEYDUDE, a casual footwear brand it acquired in 2021 for $2.5 billion.
