Shares of US footwear maker Crocs tumbled by nearly 30 percent on Thursday after the company issued a grim outlook, citing the impact of new US tariffs, weakening consumer demand, and waning interest in the so-called "ugly shoe" fashion trend.
The Colorado-based firm said it expects revenues to decline between 9 and 11 percent in the current quarter, against analysts’ expectations of slight growth. The forecast sent Crocs shares plunging 29.2 percent — the steepest single-day fall since 2011 — pushing its market value to its lowest in almost three years.
Chief executive Andrew Rees said there was “ample evidence” that US consumers had turned “super cautious”, with retail traffic declining and buyers avoiding discretionary purchases amid inflationary pressures and ongoing uncertainty around global trade policy.
“There’s clear concern in the environment for the second half of the year, and that is being reflected in reduced orders from our retail partners,” Rees said during the earnings call.
He also noted that the broader footwear market was seeing a shift back to athletic and performance brands ahead of upcoming global sporting events, including the men’s football World Cup in 2026 and the 2028 Los Angeles Olympics.
Crocs, known for its lightweight foam clogs and sandals, rose to popularity during the pandemic thanks to demand for comfortable, casual footwear. The brand had a moment of cultural prominence, including celebrity endorsements and novelty collaborations, such as this week's limited-edition Windows XP-themed Crocs launched by Microsoft.
However, Rees acknowledged changing consumer preferences were now weighing on demand. The company’s HEYDUDE brand, acquired in 2021 and focused on ultra-casual footwear, is especially exposed to tariff-related pressures, he said.
The warning from Crocs comes amid broader signs of consumer strain in the US. McDonald’s recently reported that lower-income Americans were pulling back on fast food spending. Meanwhile, fashion label Ralph Lauren, despite raising its full-year revenue forecast, said it remained cautious about the global retail environment heading into the autumn shopping season.
Crocs’ downturn highlights the vulnerability of consumer brands to shifting trends, economic headwinds, and trade tensions — particularly as the US continues to impose steep tariffs on imports under President Donald Trump’s evolving trade agenda.
