Crocs Inc.’s stock tumbled 15% Thursday after the company’s better-than-expected second quarter and raised guidance was overshadowed by a weaker-than-expected performance by its HeyDude brand, driven by weak demand from wholesalers.
The company CROX said it now expects full-year revenue at HeyDude to grow 14% to 18%, down from previous guidance of mid-20% growth. Crocs has been changing its distribution model for HeyDude to bring it closer to the one it uses for the Crocs brand, with a focus on DTC sales and key retail partners, such as Foot Locker Inc. FL
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