Crocs Stock Drops Nearly 30% Amid Declining U.S. Consumer Demand and Disappointing Q3 Guidance
Crocs stock plunged nearly 30% to a three-year low after the company issued disappointing third-quarter guidance, forecasting a 9-11% revenue decline driven by weakening U.S. consumer demand and cautious spending. The drop reflects broader challenges, including shifting fashion trends toward athletic footwear, rising competition, and significant costs tied to a $700 million write-down on the HEYDUDE acquisition plus $90 million in tariffs. These factors, combined with reduced foot traffic and price sensitivity among consumers, signal a cooling retail environment that is weighing heavily on Crocs’ sales and stock performance.
