The US shoe company Crocs Inc. suffered significant losses in sales in the third quarter of the 2025 financial year. The profit also clearly fell short of the previous year’s level. Nevertheless, the current results that the company presented on Thursday exceeded analysts’ expectations.
In the months July to September, group sales amounted to 996.3 million US dollars (859.2 million euros). This corresponded to a decline of 6.2 percent compared to the same quarter of the previous year. Adjusted for exchange rate changes, revenue fell by 6.8 percent. An increase of 1.6 percent (currency-adjusted +0.9 percent) in the company’s own retail business was not enough to compensate for a minus of 14.7 percent (currency-adjusted -15.1 percent) in the wholesale business.
Both group brands have to accept losses in sales
Sales of the core Crocs brand fell by 2.5 percent (-3.2 percent at constant currency) to $836.2 million. Losses in North America could not be fully offset by increases in international business.
At the Heydude label, revenue fell by 21.6 percent (-21.7 percent adjusted for currency effects) to $160.1 million. The main reason for this was a significant decline in the wholesale business, where sales fell by 38.6 percent (-38.7 percent adjusted for currency effects) to 69 million US dollars.
In addition to the decline in sales, a lower gross margin and higher sales overhead costs caused operating profit to fall by 23.0 percent to $207.7 million. Net profit amounted to 145.8 million US dollars (125.8 million euros). This means that it missed the level of the previous year’s quarter by 27.0 percent.
CEO Rees announces additional cost-cutting measures
Management currently expects the downward trend to continue in the fourth quarter. It forecast a decline in sales of about eight percent compared to the same period last year. A loss of around three percent is expected for the Crocs brand, and losses in the “mid 20 percent range” for Heydude.
Meanwhile, CEO Andrew Rees announced further austerity measures. In addition to the $50 million in cost reductions expected to be realized this year, the company has identified $100 million in additional savings potential, he said in a statement.