Crocs CEO says consumer environment is 'concerning,' will reduce orders in the second half

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Casual footwear company Crocs

plans to reduce orders for the second half of the year amid what its CEO called a “concerning” environment for the consumer.

“We see the U.S. consumer behaving cautiously around discretionary spending. They are faced with current and implied future price increases, which we think has the potential to be a further drag on an already choiceful consumer. Against this backdrop, our retail partners are acting more carefully and reducing their open-to-buy dollars in future seasons,” said CEO Andrew Rees on the company’s second-quarter earnings call this week, according to a FactSet transcript.

“The current environment in the second half is concerning, and we see that clearly reflected in retail order books. We strongly believe this is a time to make bold decisions for the future to sustain and advance a durable cash flow mode,” Rees added.