Crocs, Inc reported a 6.2 per cent Y-o-Y decline in consolidated revenues to $996 million in Q3, FY25.

This overall drop was largely driven by a significant slowdown in the HeyDude brand, whose revenues plummeted by 21.6 per cent to $160 million. The weakening of the HeyDude brand was primarily concentrated in the wholesale channel, which saw a steep decrease of 38.6 per cent, though its direct-to-consumer (DTC) revenues only dipped slightly by 0.5 per cent.

The flagship Crocs brand also contributed to the overall revenue slump, with sales decreasing by 2.5 per cent to $836 million, particularly with an 8.8 per cent decline in the North American region.

The company's overall wholesale revenues across both brands decreased by a sharp 14.7 per cent, in contrast to a modest 1.6 per cent growth in its DTC channel. Crocs' cited cautious consumer spending, particularly among lower-income consumers, and increased competition from athletic brands as factors impacting performance. Looking ahead, the company has projected a continued revenue decline in Q4, FY25, anticipating an approximate 8 per cent decline with HeyDude sales expected to fall by a further mid-20 per cent.