The numbers came in. Crocs (CROX +3.08%) had a quarter. Not a great one, not a disaster. Just…a quarter. The kind that makes you wonder if the market’s gone soft, or if everyone’s just wearing the wrong shoes.
They’re talking about HeyDude turning around. That’s like saying a broken clock will tell the right time eventually. It doesn’t mean it was a good clock to begin with.
The HeyDude Problem
Acquiring HeyDude in ’22 felt like a desperate man grabbing at a life raft made of foam. A mistake, plain and simple. They’re still cleaning up the wreckage. Inventory’s piled up like regrets. The hope is to get it seaworthy by the end of ’26. A long time to wait for a brand that feels like it should be retired.
Crocs, the original, managed a small uptick – 1% in sales. They’re moving shoes, mostly overseas. Direct-to-consumer is doing okay, but wholesale is lagging. Seems folks are still hesitant to bet big on rubber.
HeyDude, though? Down 17%. A slow leak, turning into a flood. Wholesale took a beating – 41%. They’re slashing prices, trying to stem the tide. It’s a messy business, this cleanup. Like trying to unscramble an egg.
Overall revenue dipped 3%. Not catastrophic, but it’s a warning sign. Gross margins shrunk. Earnings per share took a hit. They’re calling it “better than expected,” but that’s what everyone always says when things aren’t quite as bad as they feared.
| Segment | DTC Revenue Growth | Wholesale Revenue Growth | Total Revenue Growth |
|---|---|---|---|
| Crocs | 6.1% | (6.7%) | 0.8% |
| HeyDude | 0% | (40.5%) | (16.9%) |
| Total | 4.7% | (14.5%) | (3.2%) |
They’re projecting a slight uptick in sales for ’26. Mostly hoping international markets will carry the weight. They’re planning to open 200-250 new stores. China, India, Western Europe. A lot of rubber hitting a lot of pavement. It feels ambitious. Like building a castle on sand.
They need to fix HeyDude. Stop the bleeding. Cut the marketing spend. Get the inventory under control. If they can pull that off, it’ll be a win. But it’s a big “if.”
The stock is cheap. Trading at a forward P/E of 8. That’s tempting. But cheap stocks can stay cheap for a long time. It’s a gamble. A low-risk, low-reward kind of gamble.
So, is it too late to buy? Maybe. Maybe not. It depends on how much you like rubber. And how much you trust a company that’s trying to turn a sinking ship around.
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2026-02-17 22:03