Crocs keeps crushing it, but HeyDude isn’t stepping up
Crocs spent billions on HeyDude, but sales at the brand have gone backwards pretty much ever since
It’s been a good few years to be in the ugly-comfy shoe business. That’s particularly true if your company’s name is Crocs, Inc. — which saw sales boom over the last decade, giving it enough financial firepower to spend $2.5 billion acquiring one of its up and coming rivals, HeyDude, the start of a potential multi-brand shoe empire.
But, while Crocs keeps finding new customers to sell its foam clogs to, HeyDude continues to drag.
Like almost every quarter since its acquisition in 2022, Crocs Inc.’s earnings call, released Tuesday, revealed that HeyDude’s revenues had slipped by more than 17% to $204 million, whilst the Crocs original brand added another 7% in sales.
Beyond the $1.9 million FTC settlement that had thousands of customers demanding refunds for the already struggling brand, HeyDude has acquired a particular online reputation – that its shoes are not only a bit ugly (like Crocs), but also they're not even that comfortable (unlike Crocs). And splurging vast sums of marketing budget on signing stars like Sydney Sweeney, the new ambassador for the brand who can be seen jumping into lakes in a recent promotional video, doesn't seem to be helping yet.
Noting the weakness, Crocs, Inc. CEO Andrew Rees added in a press release that the company is now “resetting” its full-year outlook for the loafer brand – a clear shift from his previously “extremely bullish” expectations last quarter.
Meanwhile, Crocs sales continue to push higher, thanks to the brand’s loyal jibbitz-loving customer base and its experimental collaborations, ranging from luxury designers like Balenciaga to Pringles. Crocs shares fell ~19% on Tuesday after the results.
