Crocs faces sales dip amid tariffs and fashion shift

Crocs faces weaker US demand as consumers shift toward athletic footwear ahead of major sports events, with tariffs and cost of living weighing on margins.

Crocs US sales tumble as shoppers choose trainers

Crocs reported a 6.5% fall in US sales for April to June and cautioned on a weaker second half after posting a pre tax loss. The stock slid about 30% to a three year low as investors weighed higher living costs and tariff risks that could squeeze margins. Chief executive Andrew Rees said shoppers are switching to a clear athletic trend ahead of next year’s World Cup in the US, Mexico and Canada and the 2028 Los Angeles Olympics, a move that has reduced demand for casual Crocs.

In China, Crocs says it is bucking the weaker consumer mood through social first digital marketing with top celebrities and designers. Liu Yuxin, Tan Jianci and Bai Lu are driving attention, while Simone Rocha has helped create a sparkling Croc line that has caught the eye of celebrities such as Michelle Yeoh. Still, Crocs cautioned that demand in China remains soft and warned that a global rebound depends on how fast costs and consumer sentiment improve.

The results reflect a broader challenge for mass market brands facing inflation and tariff headwinds. Crocs sits in a spot where price sensitivity and shifting fashion trends collide, raising questions about how the business balances discounting with profitability. The company is pursuing cost savings in its supply chain to offset tariff impact, while pulling back on deep discounts. That strategy could protect margins but may dampen near term volumes.

Beyond tariffs, Crocs is betting on global sports moments and a China led revival to unlock growth. The risk is that a fragile macro environment and volatile consumer confidence could undermine even well loved basics. Success will depend on whether price conscious shoppers return and whether marketing campaigns can translate into sustained demand across regions.

Highlights

The path forward for Crocs depends on turning price resilience into growth across markets.