Investors pummel Crocs stock amid gloomy outlook

BROOMFIELD — Investors pummeled Crocs Inc. (Nasdaq: CROX) stock Thursday as the casual-footwear company predicted declining sales in the third quarter.

Crocs’ stock fell to $74,39, down $30.74 (29.24%) from Wednesday’s close of $105.13.

Second-quarter revenue totaled $1.15 billion, up 3.4% from $1.11 billion for the same period a year ago. The company recorded a net loss in Q2 of $492.3 million, or $8.82 per diluted share, compared with a profit of $228.9 million, or $3.77 per diluted share, a year ago.

While results beat expectations, the outlook for the remainder of the year is less rosy. Crocs predicts a Q3 sales decline of 9% to 11% compared with the third quarter of 2024, largely due to uncertainty driven by tariffs.

“We reported a solid second quarter with both our Crocs and HEYDUDE brands contributing to our performance, while delivering the highest ever gross profit quarter in company history. Our strong cash flow generation enabled us to return shareholder value through $133 million in share repurchases, and $105 million in debt paydown,” Andrew Rees, CEO, said in a written statement.

“While we are pleased by this performance, the current operating environment is uncertain and challenging to predict. Against this, we have chosen to focus on managing expenses including the $50 million in cost savings we have already implemented, reducing our inventory receipts, and pulling back on promotional activity to protect brand health in the marketplace. Although these actions will impact the topline of our business in the short term, they will position our business to win, drive margin dollars, and support continued cash flow generation longer term.”

Crocs reported cash and cash equivalents of $201 million, compared to $168 million a year ago, with inventories of $405 million, compared with $377 million. The company completed $133 million in share repurchases and paid down $105 million in debt.

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