Footwear brand Crocs saw total revenue fall 6.2 per cent to $996 million in the third quarter, as slower sales in North America offset growth in international markets. 

Direct-to-consumer (DTC) sales showed resilience, rising 1.6 per cent to $563 million, while wholesale revenue dropped 14.7 per cent to $433 million.

Within its portfolio, the Crocs brand generated $836 million, down 2.5 per cent, supported by a 2 per cent increase in DTC sales to $472 million, though wholesale declined 7.9 per cent to $364 million.

North American revenue slipped 8.8 per cent to $448 million, reflecting softer consumer demand, whereas international markets saw growth of 5.8 per cent to $389 million, driven by strong sales across Europe and Asia.

“Results in North America were impacted in part by two strategic actions we took, reducing discounting on our DTC and pulling back on our wholesale inventory receipts as we focus on protecting long-term brand health,” the brand said in a presentation. 

The Crocs brand also recorded broad-based strength in Tier 1 international markets, with China up mid-20 per cent, along with strong growth in Japan and key Western European markets.

Meanwhile, Heydude faced more significant pressure, with revenue falling 21.6 per cent to $160 million, largely due to a steep 38.6 per cent drop in wholesale, while DTC remained broadly stable at $91 million.

“While our results came in ahead of expectations, we believe both of our brands have greater potential, and are working to regain momentum in the marketplace,” said CEO Andrew Rees. 

Looking ahead, Crocs expects fourth-quarter revenue to fall around 8 per cent, with the Crocs brand down roughly 3 per cent and Heydude in the mid-20 per cent range.

“As we look forward, in addition to the $50 million of gross cost savings in 2025, we have identified an incremental $100 million of gross cost savings, and are committed to driving operating leverage in 2026,” added Rees.