Business reporters<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n Crocs’ share price plunged after the rubber clog-maker revealed a fall in US sales as shoppers chose to spend on trainers ahead of the World Cup and the Olympics. <\/p>\n The footwear became a stay-at-home staple during the Covid pandemic and has remained relevant as celebrities embraced the “ugly” shoe aesthetic.<\/p>\n However, North American consumers are buying into a “clear athletic trend” ahead of next year’s football World Cup in the US, Mexico and Canada and the 2028 Los Angeles Olympics, said Crocs’ boss Andrew Rees.<\/p>\n He also warned that US customers were being “super cautious” due to the high cost of living and the potential impact of Trump tariffs.<\/p>\n<\/div>\n “They’re not purchasing, they’re not even going to the stores, and we see traffic down,” Mr Rees said.<\/p>\n US sales fell by 6.5% between April and June. Crocs cautioned on a “concerning” second half of the year as it reported a pre-tax loss. Its share price plunged by 30% to a three-year low of $73.<\/p>\n<\/div>\n Mr Rees said Crocs appealed to a “particularly broad consumer base” and other brands were performing better “because they are focused exclusively on a high-end consumer”.<\/p>\n Crocs’ low-end consumer “is most sensitive to increases, is most nervous and in some cases, is not leaving the house,” he said. <\/p>\n He said these people were not buying new Crocs as they were worried how their personal finances would be hit by President Donald Trump’s sweeping tariffs across imports to the US.<\/p>\n Susan Healy, finance director at Crocs, said the company would take a $40m (\u00a329.8m) hit for the remainder of 2025 due to tariffs.<\/p>\n Mr Rees said: “I think we can over the medium-term mitigate the impact of tariffs. That will come from cost savings in our supply chain.”<\/p>\n Crocs said it will continue to pull back on discounting its products, cautioning that this could have a further impact on sales.<\/p>\n<\/div>\n In China, where consumer purchasing is “not strong”, according to Mr Rees, Crocs was “bucking that trend”.<\/p>\n “That brand heat has been driven by a set of social-first digital marketing tactics using key Chinese celebrities,” he said.<\/p>\n It is working with three of China’s biggest influencers Liu Yuxin, Tan Jianci and Bai Lu to push its rubber shoes.<\/p>\n It is also collaborating with designer Simone Rocha, whose sparkly take on the Croc were recently seen on the feet of actress Michelle Yeoh.<\/p>\n<\/div>\n While sales rose in China and fell in the US, overall revenue grew by 3.4% to $1.1bn over the three months to 30 June.<\/p>\n However, it reported a $448.6m pre-tax loss for the period, compared to a $296m profit last year. <\/p>\n The company’s share price suffered the worst single-day drop in almost 15 years after the results emerged.<\/p>\n Crocs also owns casual footwear brand HEYDUDE, following a $2.5bn takeover in late 2021.<\/p>\n<\/div>\n<\/div>\n![\"Getty](\"https:\/\/ichef.bbci.co.uk\/news\/480\/cpsprodpb\/61c5\/live\/b8266870-743c-11f0-876e-092c0a90f4e0.jpg.webp\")
Getty Images<\/span><\/div>\n<\/div>\n<\/figure>\n‘Not leaving the house’<\/h2>\n<\/p>\n
Chinese influencers<\/h2>\n<\/p>\n
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Getty Images<\/span><\/div>\n<\/div>\n