Crocs shares collapsed 29.2% on Thursday, their greatest daily drop since 2011, after the company predicted a reduction in income between 9% and 11% for the quarter, well below the expectations of slight growth of analysts.
The stock market collapse left its market value at the lowest level in almost three years.
The company attributed the coup to several factors: the imposition of new tariffs by President Donald Trump, who entered into force on the same day; an American consumer “super cautious” before inflation and high interest rates; and signs that the tendency of the “ugly shoes” loses appeal against a return of sports shoes.
Andrew Rees, executive director, warned that the environment for the second half of the year is “worrying”, with less traffic in stores and lower requests for retailers.
The tariffs, he said, will especially affect the Heydude brand, acquired in 2021, with an estimated impact of 40 million dollars in the second half of 2025 and 90 million annually.
In the second quarter, Crocs reported losses before taxes for $ 448.6 million, compared to a gain of 296.4 million in 2024, although its income rose 3.4% to 1,100 million. The company, based in Colorado, announced measures such as expenses control, inventory reduction and promotion withdrawal since May. It has caution for the reaction of consumers in the Christmas season to an uncertain and inflationary scenario.
The rise of Crocs during the pandemic, when comfort was prioritized, even led to its presence on the Red Oscar carpet in 2021. However, fashion moves quickly: the 2026 World Cup and the Los Angeles 2028 Olympic Games boost the preference for sports brands.
The history of Crocs
Crocs was founded in Numbot, Colorado, by Lyndon Hanson, Scott Seamans and George Boedecker Jr., with the idea of producing a nautical shoe manufactured with Croslitea light, waterproof and resistant foam resin.
The first model, called Beachhe debuted at the Fort Lauderdale Nautical Fair that same year, where the 200 pairs available in a few hours were sold. Initially aimed at navigators and fans of aquatic sports, footwear gained popularity thanks to its comfort, durability and easy cleaning
In the mid -2000s, Crocs became a global phenomenon: in 2006 he had already sold more than 30 million pairs and went over in Nasdaq. However, after a decline in popularity in the early 2010, the brand was reinvented with collaborations with celebrities, designers and franchises such as Post Malone, Balenciaga and Disney.
During the Covid-19 Pandemia, the demand shot down the preference of consumers for comfortable home shoes, consolidating their place as an icon of utilitarian fashion.
Celebrities from different areas have turned Crocs into a relaxed and versatile style symbol. Justin Bieber, Nicki Minaj, Post Malone and Lil Nas X have collaborated or have worn personalized models, while figures such as Drew Barrymore and John Cena have been an image of official campaigns. Even the Questlove musician brought golden crocs to the Red Oscar 2021 carpet, and Prince George promoted an increase in sales after being photographed with them.
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