Hey Dude scuffs up Crocs’ shiny earnings as the ugly-shoe industry marches on

Sport mode engaged… Crocs comfortably beat quarterly growth expectations this week, announcing it had sold 32M pairs of its holey kicks. The brand’s having a banner year: Crocs’ stock is up about 40%, and its recent Pringles collab sold out almost instantly. But something is cramping its style: Hey Dude, the lightweight slip-on loafer brand that Crocs bought for $2.5B in 2022, is underperforming. Hey Dude sales fell 17% last quarter, and Crocs slashed the brand’s annual forecast, expecting revenue to decline up to 10%.

• Hey Dude, don’t make Crocs bad… Hey Dudes, lacking the irony capital of Crocs, have been called tissue boxes, too large, bread-loaf-like, and even “relationship-threatening.” And they cost $40 to $75 a pair.

• Take a sad clog and make it better… Aware of its slip-on snafu, Crocs last month rehired former chief marketing officer Terence Reilly (who’d left to help turn Stanley cups into a wrestling-in-Target-worthy sensation) to lead Hey Dude.

Camp style… Aside from Hey Dude, Crocs earnings reflected strong loyalty among the Jibbitz-lovin’ public. Crocs-specific sales rose 15%, with international demand leading growth. Its success has spread across the industry as footwear companies capitalize on the ugly-fashion trend. Birkenstock’s revenue jumped 22% in its holiday quarter on strong US demand. Mschf’s $350 Big Red Boots sold out in seconds last year (and a Crocs collab version retailed for $450). And New Balance is releasing an already viral “snoafer” frankenshoe this summer.