Crocs Reports Significant Decline in Consumer Spending

• Crocs' sales fell by 30% due to reduced consumer spending
• The company forecasts a 10% decrease in revenue for the fourth quarter
• High tariffs will impact Crocs' profitability in 2025

The sales of the American company Crocs have dropped by nearly 30% following a previous announcement of declining sales, as consumers in the U.S. limit their spending. The company predicts that revenues for the three months ending in September will decrease by approximately 10% compared to the same period last year, as some shoppers have stopped visiting Crocs stores.

General Director Andrew Rees noted that consumers in the U.S. will continue to be cautious in their spending on discretionary items. The price of the company's shares has reached its lowest level in nearly three years following the largest single drop in the last 15 years.

The company believes that the second half of the year will be "challenging." High living expenses and the potential influence of the trading policies of U.S. President Donald Trump contribute to this. Financial Director Susan Healy reported that the company expects to incur a loss of $40 million due to tariffs.

Rees also pointed out that consumers are again beginning to prioritize athletic footwear, especially with an eye on future sporting events, such as the FIFA World Cup in 2026 and the Olympic Games in Los Angeles in 2028.

In the second quarter, Crocs recorded a revenue of $1.1 billion, which is 3% higher compared to the same period last year, despite a decrease in the number of buyers. The company also owns the brand of everyday footwear HEYDUDE, which it acquired in 2021 for $2.5 billion.

Tags: USA/Economy