Can Product Refresh Revive Revenue Trends for Crocs' HEYDUDE Brand?

Crocs, Inc.’s CROX HEYDUDE brand faces revenue headwinds, although early signs of stabilization emerged following its product refresh efforts in third-quarter 2025. Revenues for the HEYDUDE brand were $160 million in the third quarter, down 22% year over year. The brand’s sales continue to be weighed down by deliberate wholesale rationalization and reduced performance marketing spend, actions taken to restore healthier inventory and brand positioning. 
Product innovation sits at the core of the turnaround strategy. Within the Wally and Wandy franchise, Stretch Sox has outperformed the legacy socks line, pointing to stronger consumer resonance.

Looking ahead, the Stretch Jersey ("sweatshirt for your feet") is positioned to expand appeal across both men and women, while traction in the Paul franchise offers a pathway into the dress-casual sneaker category. HEYDUDE is also building on momentum in slippers and boots, with recent collaborations driving meaningful digital engagement and halo effects across broader assortments.

Crocs also prioritized cleaning up excess inventory in North America. During the third quarter, the company accelerated returns and markdown allowances to retailers to improve inventory health while elevating wholesale presentation. These cleanup actions had an impact on revenue in the third quarter through vendor returns, and the company expects to continue markdown support in the fourth quarter.

While risks remain given subdued demand and promotional pullbacks, the early performance of refreshed franchises suggests that sustained product innovation could play a meaningful role in stabilizing and eventually reviving HEYDUDE’s revenue trends.

The Zacks Rundown for CROX

Crocs’s shares have lost 11% in the past six months compared with the industry’s decline of 8.5%. CROX presently sports a Zacks Rank #1 (Strong Buy). 

From a valuation standpoint, CROX trades at a forward price-to-earnings ratio of 7.11X, lower than the industry’s average 17.88X.

The Zacks Consensus Estimate for CROX’s 2025 earnings implies a year-over-year decline of 7.9%, and the same for 2026 earnings implies year-over-year growth of 3.9%. CROX delivered a trailing four-quarter earnings surprise of 14.3% on average.

Stocks to Consider

Alto Ingredients, Inc. ALTO produces, distributes, and markets specialty alcohols, renewable fuel, and essential ingredients in the United States. At present, the company flaunts a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Alto Ingredients’ current fiscal-year sales implies a decline of 2.7%, and the same for current fiscal-year earnings implies growth of 78.2% from the year-ago figures. ALTO has delivered a trailing four-quarter earnings surprise of 81.7%, on average.

Ralph Lauren Corporation RL designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally. At present, Ralph Lauren holds a Zacks Rank of 2 (Buy).

The consensus estimate for Ralph Lauren’s current fiscal-year sales and earnings implies growth of 9.5% and 25%, respectively, from the year-ago figures. RL has delivered a trailing four-quarter earnings surprise of 9.8%, on average.

The Beachbody Company Inc. BODI operates as a fitness and nutrition company in the United States, Canada, the United Kingdom, and France. At present, the company holds a Zacks Rank of 2.

The Zacks Consensus Estimate for Beachbody’s current fiscal-year sales implies a decline of 40.4%, and the same for current fiscal-year earnings implies growth of 89.1% from the year-ago figures. BODI has delivered a trailing four-quarter earnings surprise of 76.1%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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