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Crocs Giving Heydude Strategy a Makeover


Crocs is developing a new strategy for its Heydude brand. Faced with some immediate challenges, Heydude’s annual revenue target of $1 billion is being pushed back until 2024, with H1 of its upcoming fiscal year likely to produce lower year-over-year sales due to light wholesale orders and restricted open-to-buy orders for the spring season.

“With Heydude, we are focused on protecting profitability and elevating marketplace, even if that comes at the expense of near-term revenues,” Crocs’ CEO Andrew Rees told analysts last week.

Crocs’ actions with its Heydude business include a distribution clean-up, a shift in distribution focus, and the establishment of a retail outlet strategy for the brand whose annual revenues are forecast to contract by 4 to 6 percent from 2022’s pro forma sales of $986 million. In addition to a shift away from mom-and-pop shops to family footwear and sporting goods chains, Heydude test distribution markets have been established in Europe for potential expansion in the next two to three years.