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Crocs Shares Plunge Nearly 30% on Weaker Outlook and Tariff Burden

Investors are reassessing Crocs’s growth prospects after the company warned of a steep sales decline under looming import duties.

Overview

  • Crocs projected a 9 to 11 percent drop in current-quarter revenue, surprising analysts and triggering an intraday share slide of nearly 30 percent.
  • The stock clawed back roughly 3 percent in after-hours trading but remains under pressure on the market.
  • CEO Andrew Rees said US consumers are cutting back on non-essential purchases with broader spending caution persisting.
  • A $40 million import tariff charge expected in the second half of the year reflects rising costs from President Trump’s trade measures.
  • Despite a 3.4 percent revenue gain last quarter, Crocs recorded a $492 million net loss and faces potential demand shifts toward traditional athletic footwear ahead of major sports events.