Shoe behemoth Crocs Inc. has reported an increase in revenue for the first quarter of 2025, led largely by sustained momentum in its eponymous brand. That said, the company has decided to pull its full-year forecast in response to increasing uncertainty in the global trade landscape.
For the period through 31st March, the firm reported revenues of US $ 937 million, up 1.4 per cent from last year. Sales through direct-to-consumer (DTC) rose by 2.3 per cent, and wholesale revenues fell slightly by 1.6 per cent.
The Crocs brand directly reported a 2.4 per cent revenue increase to US $ 762 million, with sales growth through each channel—DTC sales increased 1.1 per cent to US $ 285 million, and wholesale was up 3.2 per cent to US $ 477 million.
But those gains were offset by a drop in performance at Heydude, the casual footwear brand Crocs bought in 2022. Heydude’s sales fell almost 10 per cent to US $ 176 million, weighed down by a 17.9 per cent decline in wholesale sales to US $ 111 million. On the positive side, Heydude’s DTC sales increased 8.3 per cent to US $ 65 million.
CEO Andrew Rees commended the resilience of the company, stating that performance exceeded internal expectations. “In spite of an ever more uncertain economic environment, both our Crocs and Heydude brands posted robust operational performances, with margins, earnings and cash flow all beating expectations,” Rees said.
Nevertheless, the firm has decided to cancel its earlier released full-year guidance, initially provided in February. Rees cited changing global trade patterns and general economic uncertainty as key factors obscuring consumer trends in the coming months.
Crocs has not put out a revised estimate, so analysts and investors will be paying close attention to how the company weathers what is turning out to be a bumpy economic year.
