Crocs sees further Hey Dude volume headwinds over ‘next several quarters’

On the company’s earnings call, Crocs (CROX) executives stated: “For the Crocs brand, in addition to adjusting our forward receipts, we pulled back on promotional activity across the direct channels starting in May. While this has and will continue to impact our top line, we see this as an opportunity to drive margin dollars over time support continued cash flow generation and tighten brand control. For the Hey Dude brand, we’ve accelerated our actions in the channel to support a clean and refreshed marketplace. This has resulted in us choosing to take back additional aged inventory and ensure more of our partners are reset with our current product lines. This will create further headwinds to sales volume over the next several quarters. From an expense perspective, we’ve already actioned $50,000,000 of cost savings and are identifying further cost savings opportunities.”