Can Crocs Sustain Growth Despite Slowing Global Footwear Demand?

Crocs, Inc. CROX is experiencing a moderation in demand, particularly in North America, reflecting a bifurcated consumer environment. More affluent shoppers continue to purchase Crocs and other premium brands, while a larger and more cautious consumer segment is prioritizing essential spending, creating pressure on overall footwear demand. In response, the company is actively focused on regaining momentum, with teams already executing against clearly defined strategic priorities.Within the Crocs brand, management has highlighted two core initiatives designed to strengthen the business in the long term. First, the company has deliberately pulled back on the promotions across its North American digital channels. This shift has most notably affected the Classic Clog category, as management prioritizes protecting the brand’s iconic status and long-term pricing integrity. Second, Crocs continues to reduce wholesale receipts to better align inventory with demand, reinforcing a more disciplined, demand-driven operating model. While these actions are weighing on near-term sales, it is intended to create a healthier foundation for sustainable growth.For the HEYDUDE brand, the company remains focused on improving channel inventory conditions across North America. In the third quarter of 2025, Crocs accelerated product returns and increased markdown allowances to retail partners to improve inventory quality and elevate brand presentation at wholesale. Although these actions negatively impacted third-quarter revenue and will require continued markdown support in the fourth quarter, they have been effective in stabilizing the channel and positioning the brand for future recovery.Looking ahead, Crocs plans to broaden its crafted franchise through new product introductions, launch an enhanced Crocs brand that already enjoys strong consumer affinity, and introduce the Echo 2.0 clog. This expanded product diversification within the clog platform is expected to enable better channel segmentation and support durable long-term growth. In parallel, the company continues to simplify its cost structure through rightsizing initiatives. International growth for the Crocs brand is expected to accelerate to a low double-digit pace in the fourth quarter, providing additional support to the overall growth outlook.The Zacks Rundown for CROXCrocs’ shares have lost 20.6% in the past six months compared with the industry’s decline of 7.6%. CROX presently carries a Zacks Rank #3 (Hold).Image Source: Zacks Investment ResearchFrom a valuation standpoint, CROX trades at a forward price-to-earnings ratio of 6.83X, lower than the industry’s average 16.4X.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for CROX’s current-year earnings estimates implies a year-over-year decline of 7.9%, and the next year earnings estimates indicate year-over-year growth of 3.9%.Image Source: Zacks Investment ResearchStocks to ConsiderSome better-ranked stocks have been discussed below:Vince Holding Corp. VNCE provides luxury apparel and accessories in the United States and internationally. It operates through Vince Wholesale and Vince Direct-to-Consumer segments. At present, the company flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for VNCE’s current fiscal-year sales and earnings implies growth of 2% and 26.3%, respectively, from the year-ago figures. VNCE has delivered a trailing four-quarter earnings surprise of 229.6%, on average.Advantage Solutions, Inc. ADV, provides business solutions to the consumer-packaged goods companies and retailers in North America, Asia Pacific, and Europe. At present, Advantage Solutions carries a Zacks Rank of 2 (Buy).The Zacks Consensus Estimate for Advantage Solutions’ current fiscal-year sales implies a decline of 2.2%, and the same for earnings implies growth of 107.1% from the year-ago figures. ADV has delivered a trailing four-quarter negative earnings surprise of 128.1%, on average.Guess?, Inc. GES designs, markets, distributes, and licenses lifestyle collections of apparel and accessories for men, women, and children. At present, the company holds a Zacks Rank of 2.The Zacks Consensus Estimate for GES’s current fiscal-year sales implies growth of 8%, and the same for current fiscal-year earnings implies a decline of 13.8% from the year-ago figures. GES has delivered a trailing four-quarter earnings surprise of 45%, on average.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Guess?, Inc. (GES): Free Stock Analysis Report Crocs, Inc. (CROX): Free Stock Analysis Report Vince Holding Corp. (VNCE): Free Stock Analysis Report Advantage Solutions Inc. (ADV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks