Crocs stock stomps higher despite Heydude slippage

Crocs, the foam clog fashion ‘pioneer’, leapt some 7.5% higher in Tuesday’s trading thanks to a strong set of financial results.

Reporting first quarter revenue of $938.6 million Crocs easily exceeded the $884.2 million banked this time last year, and also comfortably beat Wall Street forecasts of $884 million.

Net income was marked at $152.5 million, $2.50 per share, which also edge above last year's comparative.

Early trading was subdued by the drag that Heydude, a slip-on shoe brand acquired in 2022 and is seen to be struggling with weak demand.

"We delivered an exceptional first quarter, led by mid-teens growth of our Crocs Brand, driven by robust consumer demand both in North America and in international markets,” chief executive Andrew Rees said in a statement.

Rees, meanwhile, told Crocs investors that management is still confident in the long-term opportunity for the HEYDUDE brand, but, its reducing revenue expectations whilst the company “continues to prioritize brand health in the North American market”.

Traders soon saw past that, though, to drive Crocs price higher.

In New York, Crocs stock traded as high as $142.30 and at the time of writing was up 6.8% at $135.30.