Footwear firm warns of falling sales because of global trade uncertainty and ‘super-cautious’ US consumers
Shares in the US footwear company Crocs have slumped by almost 30% after it warned of falling sales because of tariffs, “super cautious” US consumers and signs that fashion’s “ugly shoe” trend is coming to an end.
The foam clog and sandal maker’s shares fell by 29.2% on Thursday, after it predicted revenues could drop by between 9% and 11% in the current quarter, disappointing analysts who were expecting slight growth.
It also warned of a hit to profitability from Donald Trump’s tariffs – the latest wave of which came into force earlier that day – citing “continued uncertainty from evolving global trade policy and related pressures around the consumer”.
The share price plunge was its biggest one-day drop since 2011, taking its valuation to its lowest level for almost three years.
