We are catching up on HEYDUDE results, which were reported by parent company Crocs Inc. last week.
The HEYDUDE brand reported revenues of $160 million in the third quarter of 2025, a 22% decline compared to the same period last year. Crocs, which acquired HEYDUDE in early 2022, has accelerated HEYDUDE marketplace cleanup efforts in the wholesale channel while working to stabilize the struggling footwear brand.
The brand’s direct-to-consumer channel was more resilient than wholesale, declining 1% to $91 million. This was driven by new retail store openings and strong digital marketplace performance. However, wholesale revenues dropped 39% to $69 million as HEYDUDE works to take back slow-selling inventory from retailers.
HEYDUDE’s gross margin compressed 560 basis points to 42.3% due to tariff headwinds and fixed cost deleverage, though this was partially offset by higher average selling prices. The brand achieved its ninth consecutive quarter of ASP increases.
HEYDUDE Cleanup Actions Continue into Fourth Quarter
The company accelerated returns and markdown allowances to retailers during the third quarter to improve inventory health and brand presentation at wholesale. These cleanup actions impacted revenue through vendor returns, and additional markdown support is planned for the fourth quarter.
“In Q3, we invested actually a considerable amount of money in terms of the marketplace clean-up,” Crocs CEO Andrew Rees said on an earnings conference call. “That was primarily return. So, we took back aged and slow selling product from some of our large wholesale partners, and it was a substantial amount.”
Most cleanup activities are expected to be completed during 2025, executives said.
Strategic Focus on Community Building and Core Products
HEYDUDE is focusing on three key strategic pillars: building community, strengthening core products, and continuing channel inventory cleanup. The brand launched its HEYDUDE Country campaign in June, targeting consumers who identify as “laid back and no fuss” while seeking comfortable, lightweight products.
Product innovation centers on the Wally and Wendy franchises, with the Stretch Sox launch already surpassing legacy Sox performance on a like-for-like basis. The brand plans to introduce Stretch Jersey in 2026, described as “a sweatshirt for your feet,” which has received strong retailer response.
A third collaboration with country music artist Jelly Roll, featuring the Bradley Boot in two colorways, drove the largest single day for HEYDUDE on TikTok Shop to date.
Fourth Quarter and Full-Year Outlook
For the fourth quarter of 2025, HEYDUDE is expected to see revenues decline in the mid-20% range, including impacts from reduced performance marketing spend in DTC channels and continued wholesale marketplace cleanup investments.
The brand returned to the Top 10 preferred footwear brands among males in the Piper Sandler Taking Stock With Teens Survey this fall, providing encouragement for future growth potential, executives said.
Crocs Brand Falls in NA, Grows Internationally
The broader Crocs Inc. portfolio showed more stability, with the Crocs brand revenues declining only 3% to $836 million in the third quarter. International revenues increased 4%, driven by strong performance in China, Japan, and Western Europe, while North America revenues declined 9% as the company pulled back on promotional activity to protect long-term brand health.
