Why Crocs Stock Just Plunged to Its Lowest Level Since 2022

Shares of Crocs (CROX) lost close to a third of their value Thursday after the maker of brightly colored clogs said it expects tariffs to hurt current-quarter results.

The Broomfield, Colo.-based footwear firm reported adjusted earnings per share of $4.23, while analysts surveyed by Visible Alpha had expected $4.05. Revenue increased more than 3% year-over-year to $1.15 billion, matching expectations.

However, Crocs did not provide a full-year outlook, “given the continued uncertainty from evolving global trade policy and related pressures around the consumer,” and said it sees third-quarter revenue down 9% to 11%, below expectations. Crocs said its operating margin would likely be negatively impacted by tariffs.

“The current operating environment is uncertain and challenging to predict,” CEO Andrew Rees said. “Against this, we have chosen to focus on managing expenses including the $50 million in cost savings we have already implemented, reducing our inventory receipts, and pulling back on promotional activity to protect brand health in the marketplace. Although these actions will impact the topline of our business in the short term, they will position our business to win, drive margin dollars, and support continued cash flow generation longer term.”

Crocs shares plunged 29% Thursday to end the session at $74.39, their lowest finish since Nov. 2, 2022, when the stock closed at $67.05.

This article has been updated since it was first published to reflect more recent share price values.