Glancy Prongay & Murray LLP, a leading national shareholder rights law firm, today announced that it has commenced an investigation on behalf of Crocs, Inc. (“Crocs” or the “Company”) (NASDAQ: CROX) investors concerning the Company’s possible violations of the federal securities laws.
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What Is The Investigation About?
In February 2022, Crocs completed its acquisition of HEYDUDE, a footwear brand focusing on casual, comfortable, and lightweight footwear.
But on April 27, 2023, Crocs revealed that HEYDUDE’s 2022 revenue growth was attributable to efforts to stock the Company’s wholesale partners with products and was not necessarily indicative of actual retail sales. On this news, Crocs’ stock price fell $23.46, or 15.9%, to close at $124.32 per share on April 27, 2023, thereby injuring investors.
Then, on June 7, 2023, the Company revealed that over half of HEYDUDE’s third quarter 2022 wholesale revenue was the result of efforts to stock HEYDUDE products with Crocs’ major retailers. On this news, Crocs’ stock price fell $4.52, or 3.7%, to close at $116.57 per share on June 8, 2023.
Shortly after, on July 27, 2023, Crocs admitted that its deliberate overstocking accounted for approximately $220 million of HEYDUDE’s $896 million in revenue for the period directly following the closing of the acquisition. The Company also announced that it was reducing HEYDUDE’s revenue growth guidance for the remainder of 2023. On this news, Crocs’ stock price fell $17.50, or 14.6%, to close at $102.30 per share on July 27, 2023.
Then, on August 16, 2023, Williams Trading LLC significantly decreased its price target on Crocs, citing elevated HEYDUDE inventory levels. On this news, Crocs’ stock price fell $3.79, or 3.9%, to close at $94.01 per share on August 16, 2023.
Further, on November 2, 2023, Crocs released its third quarter 2023 financial results, revealing that HEYDUDE’s wholesale revenue had declined significantly “following prior year pipeline fill.” Crocs slashed its 2023 HEYDUDE revenue growth guidance from 14%-18% to only 4%-6%. On this new, Crocs’ stock price fell $4.62, or 5.3%, to close at $82.79 per share on November 2, 2023.
Finally, on October 29, 2024, the Company hosted an earnings call, during which Chief Executive Officer Andrew Rees revealed that HEYDUDE revenue had fallen below expectations once again, and was struggling due to “excess inventories in the market.” Moreover, Andrew Reese admitted that “in retrospect, we absolutely shipped too much product.”
On this news, Crocs’ stock price fell $26.47, or 19.2%, to close at $111.58 per share on October 29, 2024.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us.
Charles Linehan, Esq.,
Glancy Prongay & Murray LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: shareholders@glancylaw.com
Telephone: 310-201-9150 (Toll-Free: 888-773-9224)
Visit our website at www.glancylaw.com.
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Whistleblower Notice
Persons with non-public information regarding Crocs should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Charles H. Linehan at 310-201-9150 or 888-773-9224 or email shareholders@glancylaw.com.
About Glancy Prongay & Murray LLP
Glancy Prongay & Murray LLP (“GPM”) is a premier law firm representing investors and consumers in securities litigation and other complex class action litigation. GPM has been consistently ranked in the Top 50 Securities Class Action Settlements by ISS Securities Class Action Services. In 2018, GPM was ranked a top five law firm in number of securities class action settlements, and a top six law firm for total dollar size of settlements.
With four offices across the country, GPM’s nearly 40 attorneys have won groundbreaking rulings and recovered billions of dollars for investors and consumers in securities, antitrust, consumer, and employment class actions. GPM’s lawyers have handled cases covering a wide spectrum of corporate misconduct and relating to nearly all industries and sectors. GPM’s past successes have been widely covered by leading news and industry publications such as The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron’s, Investor’s Business Daily, Forbes, and Money.
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Contacts
Glancy Prongay & Murray LLP,
1925 Century Park East, Suite 2100,
Los Angeles, CA 90067
Charles Linehan
Email: shareholders@glancylaw.com
Telephone: 310-201-9150
Toll-Free: 888-773-9224
Visit our website at: www.glancylaw.com.
