The stocks of American footwear firm Crocs declined by about 30% after warning of a decline in sales as American shopkeepers have rein in their expenses.
The rubber clogus maker says that she expects revenue by the end of August for three months compared to the previous year, saying that some shopkeepers are no longer going to the Crocs Store.
“We see the American consumer carefully behaving around the discretionary expenses,” said Andrew Reece, CEO of the firm.
The company’s share price is now at its lowest level for almost three years after suffering from the worst single-day fall in about 15 years.
Crocs warned of a “related” in the second half of the year, due to the high cost of life and the possible impact of US President Donald Trump’s business policies.
Its Chief Financial Officer, Susan Heli said that Crokes would hit $ 40m (£ 29.8m) for the remaining 2025 due to tariff.
“I think we can reduce the impact of tariffs for the medium period. It will come from the cost savings in our supply chain,” said Mr. Rees.
The footwear manufacturer also warned that he saw “adequate evidence” that a part of his customer base is now “super vigilant” with his expenses.
“They are not purchasing, they are not even going to the shops, and we see the traffic down,” Mr. Rees said during a call with investors and journalists.
Crocs said it would continue to pull back to exempt its products, taking care that this could have further impact on sale.
Next year’s Football World Cup at the US, Mexico and Canada and 2028 Los Angeles Olympics, Mr. Rees said that consumers are migrating back to “athletic” products.
Following his comments, Crokes reported the revenue of the second quarter of $ 1.1BN, increased by 3% compared to the same period last year.
The company also has a casual footwear brand Heidude after the $ 2.5BN acquisition at the end of 2021.
