Can Crocs' HEYDUDE Brand Regain Momentum in North America?

Crocs Inc.’s CROX sub-brand HEYDUDE, known for its comfort-focused casual footwear, is undergoing a strategic reset to reclaim momentum in the competitive North American market. Once a fast-growing brand, HEYDUDE faced slowing momentum in 2024, prompting leadership to revamp product assortments, refresh marketing efforts and streamline operations. As detailed in Crocs' first-quarter 2025 earnings call, these efforts are already yielding promising early results. The big question now is whether HEYDUDE can not only stabilize but also emerge stronger and more relevant among U.S. consumers.

The HEYDUDE brand has made solid progress in refining its product strategy by simplifying and modernizing its core offerings. A key move has been the reintroduction of the Wally Stretch Sox program, an upgrade from the legacy model offering consumers better materials and clearer style consistency. This rebranding and product refresh, combined with tighter inventory management, has helped rebuild wholesale confidence. In first-quarter 2025, direct-to-consumer (DTC) revenues for HEYDUDE grew 8% year over year, a clear sign that the brand is resonating with consumers again despite broader retail caution.

Marketing has been another major lever in HEYDUDE's recovery. Influencer campaigns with Sydney Sweeney and viral TikTok drops like the Jelly Roll Wally have reignited buzz for HEYDUDE, especially among younger and female shoppers. These efforts reflect a shift toward lifestyle-driven storytelling that makes the brand feel both trendy and approachable.

HEYDUDE's success will depend on its ability to maintain this momentum while continuing to evolve. However, the brand must remain disciplined, balancing innovation with its core identity and growth with profitability. If it can do that, HEYDUDE stands a real chance to reclaim market share in North America and grow into a long-term complementary force alongside the flagship Crocs brand.

CROX’s Zacks Rank & Share Price Performance

Shares of this Zacks Rank #3 (Hold) company have appreciated 9.9% in the past three months, outperforming the Textile - Apparel industry’s gain of 7.1%.

CROX Stock's Three-Month Performance

Is CROX Stock a Value Play?

Crocs shares are currently trading at a forward 12-month price-to-earnings (P/E) multiple of 7.59X, which positions it at a discount compared with the industry’s average of 11.19X. The stock is undervalued compared with its industry peers, offering compelling value to investors looking for exposure to the consumer staple sector.

CROX P/E Ratio (Forward 12 Months)

Key Picks

We have highlighted three better-ranked stocks, namely and adidas AG ADDYY, Revolve Group, Inc. RVLV and Duluth Holdings DLTH.

adidas is a leading brand in the sporting goods market with strong positions in footwear, apparel and hardware. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for adidas’ current fiscal-year sales and EPS indicates growth of 13.4% and 89.1%, respectively, from the year-ago period’s reported figures. ADDYY has a trailing four-quarter negative earnings surprise of 48%, on average.

Revolve Group operates as an online fashion retailer for millennial and Generation Z consumers in the United States and internationally. RVLV currently carries a Zacks Rank #2 (Buy). RVLV has a trailing four-quarter earnings surprise of 63.4%, on average.

The Zacks Consensus Estimate for Revolve Group’s current financial year’s sales indicates growth of 5.5% and earnings implies a decline of 43.5% from the year-ago reported numbers.

Duluth Holdings provides casual wear, workwear and accessories for men and women. The company currently carries a Zacks Rank #2. Duluth Holdings has a trailing four-quarter negative earnings surprise of 21%, on average.

The Zacks Consensus Estimate for DLTH’s current financial-year EPS indicates growth of 18.3% from the year-ago figure.

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