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Can Crocs Sustain Growth Despite Slowing Global Footwear Demand?
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Key Takeaways
CROX pulls back promotions and wholesale receipts to protect brand health despite near-term sales pressure.
Crocs took markdowns and returns to clean up HEYDUDE wholesale, stabilizing inventory ahead of recovery.
CROX expects low double-digit international growth in Q4 as new clog launches support momentum.
Crocs, Inc. (CROX - Free Report) is experiencing a moderation in demand, particularly in North America, reflecting a bifurcated consumer environment. More affluent shoppers continue to purchase Crocs and other premium brands, while a larger and more cautious consumer segment is prioritizing essential spending, creating pressure on overall footwear demand. In response, the company is actively focused on regaining momentum, with teams already executing against clearly defined strategic priorities.
Within the Crocs brand, management has highlighted two core initiatives designed to strengthen the business in the long term. First, the company has deliberately pulled back on the promotions across its North American digital channels. This shift has most notably affected the Classic Clog category, as management prioritizes protecting the brand’s iconic status and long-term pricing integrity. Second, Crocs continues to reduce wholesale receipts to better align inventory with demand, reinforcing a more disciplined, demand-driven operating model. While these actions are weighing on near-term sales, it is intended to create a healthier foundation for sustainable growth.
For the HEYDUDE brand, the company remains focused on improving channel inventory conditions across North America. In the third quarter of 2025, Crocs accelerated product returns and increased markdown allowances to retail partners to improve inventory quality and elevate brand presentation at wholesale. Although these actions negatively impacted third-quarter revenue and will require continued markdown support in the fourth quarter, they have been effective in stabilizing the channel and positioning the brand for future recovery.
Looking ahead, Crocs plans to broaden its crafted franchise through new product introductions, launch an enhanced Crocs brand that already enjoys strong consumer affinity, and introduce the Echo 2.0 clog. This expanded product diversification within the clog platform is expected to enable better channel segmentation and support durable long-term growth. In parallel, the company continues to simplify its cost structure through rightsizing initiatives. International growth for the Crocs brand is expected to accelerate to a low double-digit pace in the fourth quarter, providing additional support to the overall growth outlook.
The Zacks Rundown for CROX
Crocs’ shares have lost 20.6% in the past six months compared with the industry’s decline of 7.6%. CROX presently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
From a valuation standpoint, CROX trades at a forward price-to-earnings ratio of 6.83X, lower than the industry’s average 16.4X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CROX’s current-year earnings estimates implies a year-over-year decline of 7.9%, and the next year earnings estimates indicate year-over-year growth of 3.9%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
Vince Holding Corp. (VNCE - Free Report) provides luxury apparel and accessories in the United States and internationally. It operates through Vince Wholesale and Vince Direct-to-Consumer segments. At present, the company flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VNCE’s current fiscal-year sales and earnings implies growth of 2% and 26.3%, respectively, from the year-ago figures. VNCE has delivered a trailing four-quarter earnings surprise of 229.6%, on average.
Advantage Solutions, Inc. (ADV - Free Report) , provides business solutions to the consumer-packaged goods companies and retailers in North America, Asia Pacific, and Europe. At present, Advantage Solutions carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Advantage Solutions’ current fiscal-year sales implies a decline of 2.2%, and the same for earnings implies growth of 107.1% from the year-ago figures. ADV has delivered a trailing four-quarter negative earnings surprise of 128.1%, on average.
Guess?, Inc. (GES - Free Report) designs, markets, distributes, and licenses lifestyle collections of apparel and accessories for men, women, and children. At present, the company holds a Zacks Rank of 2.
The Zacks Consensus Estimate for GES’s current fiscal-year sales implies growth of 8%, and the same for current fiscal-year earnings implies a decline of 13.8% from the year-ago figures. GES has delivered a trailing four-quarter earnings surprise of 45%, on average.
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Can Crocs Sustain Growth Despite Slowing Global Footwear Demand?
Key Takeaways
Crocs, Inc. (CROX - Free Report) is experiencing a moderation in demand, particularly in North America, reflecting a bifurcated consumer environment. More affluent shoppers continue to purchase Crocs and other premium brands, while a larger and more cautious consumer segment is prioritizing essential spending, creating pressure on overall footwear demand. In response, the company is actively focused on regaining momentum, with teams already executing against clearly defined strategic priorities.
Within the Crocs brand, management has highlighted two core initiatives designed to strengthen the business in the long term. First, the company has deliberately pulled back on the promotions across its North American digital channels. This shift has most notably affected the Classic Clog category, as management prioritizes protecting the brand’s iconic status and long-term pricing integrity. Second, Crocs continues to reduce wholesale receipts to better align inventory with demand, reinforcing a more disciplined, demand-driven operating model. While these actions are weighing on near-term sales, it is intended to create a healthier foundation for sustainable growth.
For the HEYDUDE brand, the company remains focused on improving channel inventory conditions across North America. In the third quarter of 2025, Crocs accelerated product returns and increased markdown allowances to retail partners to improve inventory quality and elevate brand presentation at wholesale. Although these actions negatively impacted third-quarter revenue and will require continued markdown support in the fourth quarter, they have been effective in stabilizing the channel and positioning the brand for future recovery.
Looking ahead, Crocs plans to broaden its crafted franchise through new product introductions, launch an enhanced Crocs brand that already enjoys strong consumer affinity, and introduce the Echo 2.0 clog. This expanded product diversification within the clog platform is expected to enable better channel segmentation and support durable long-term growth. In parallel, the company continues to simplify its cost structure through rightsizing initiatives. International growth for the Crocs brand is expected to accelerate to a low double-digit pace in the fourth quarter, providing additional support to the overall growth outlook.
The Zacks Rundown for CROX
Crocs’ shares have lost 20.6% in the past six months compared with the industry’s decline of 7.6%. CROX presently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
From a valuation standpoint, CROX trades at a forward price-to-earnings ratio of 6.83X, lower than the industry’s average 16.4X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CROX’s current-year earnings estimates implies a year-over-year decline of 7.9%, and the next year earnings estimates indicate year-over-year growth of 3.9%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
Vince Holding Corp. (VNCE - Free Report) provides luxury apparel and accessories in the United States and internationally. It operates through Vince Wholesale and Vince Direct-to-Consumer segments. At present, the company flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VNCE’s current fiscal-year sales and earnings implies growth of 2% and 26.3%, respectively, from the year-ago figures. VNCE has delivered a trailing four-quarter earnings surprise of 229.6%, on average.
Advantage Solutions, Inc. (ADV - Free Report) , provides business solutions to the consumer-packaged goods companies and retailers in North America, Asia Pacific, and Europe. At present, Advantage Solutions carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Advantage Solutions’ current fiscal-year sales implies a decline of 2.2%, and the same for earnings implies growth of 107.1% from the year-ago figures. ADV has delivered a trailing four-quarter negative earnings surprise of 128.1%, on average.
Guess?, Inc. (GES - Free Report) designs, markets, distributes, and licenses lifestyle collections of apparel and accessories for men, women, and children. At present, the company holds a Zacks Rank of 2.
The Zacks Consensus Estimate for GES’s current fiscal-year sales implies growth of 8%, and the same for current fiscal-year earnings implies a decline of 13.8% from the year-ago figures. GES has delivered a trailing four-quarter earnings surprise of 45%, on average.