Crocs Inc. shares have fallen nearly 30% amid warnings of a 10% revenue decrease due to cautious spending habits among US consumers, marking the firm’s steepest drop in nearly 15 years.
Crocs Sees Stocks Plummet as US Consumer Caution Grows
Crocs Sees Stocks Plummet as US Consumer Caution Grows
The American footwear company Crocs faces a steep decline in shares following a forecasted drop in sales as US shoppers tighten their belts.
Shares of Crocs Inc., the iconic American footwear brand, have witnessed a dramatic plunge of nearly 30% following an alarming forecast regarding sales figures. The rubber clog manufacturer anticipates a revenue decline of about 10% for the quarter ending in August compared to the previous year. Chief Executive Officer Andrew Rees highlighted the shift in consumer behavior, noting that U.S. shoppers are increasingly cautious when it comes to discretionary spending.
The company's stock has now sunk to its lowest level in almost three years, triggered by the steepest one-day drop the firm has seen in nearly 15 years. Crocs has warned of a "troubling" second half of 2025, attributing potential challenges to the rising cost of living and uncertainties stemming from trade policies, specifically those linked to President Donald Trump.
Chief Financial Officer Susan Healy indicated that Crocs would incur a $40 million (£29.8 million) impact over the remaining months of 2025 due to implemented tariffs. However, Rees expressed optimism, suggesting that through careful management, the company could mitigate tariff consequences by pursuing cost-saving measures within its supply chain.
Despite the negative outlook, Crocs reported a slight increase in second-quarter revenue, which amounted to $1.1 billion—a 3% rise year-over-year. Nevertheless, the footwear maker indicated that many of its loyal customers have become "super cautious" with their spending habits, showing reduced store traffic and declining purchasing activities.
Looking towards upcoming international sporting events, such as the World Cup in the U.S., Mexico, and Canada, and the Los Angeles Olympics in 2028, Rees remarked that there is a noticeable consumer shift back toward athletic footwear products. He also cautioned that the company's strategy to limit discounting might be a double-edged sword, as it could further influence sales in the future.
Overall, while Crocs continues to navigate these turbulent waters, the outlook remains uncertain as broader economic factors intertwine with evolving consumer preferences.
