Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm Encourages Crocs, Inc. (CROX) Investors To Inquire About Securities Fraud Class Action

LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP, a leading national shareholder rights law firm, announces that a securities fraud class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired Crocs, Inc. (“Crocs” or the “Company”) (NASDAQ: CROX) common stock between November 3, 2022 and October, 28 2024, inclusive (the “Class Period”). Crocs investors have until March 24, 2025 to file a lead plaintiff motion.

IF YOU SUFFERED A LOSS ON YOUR CROCS, INC. (CROX), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS UNDER THE FEDERAL SECURITIES LAWS

What Happened?

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.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) the nature and sustainability of HEYDUDE’s revenue growth by concealing that 2022 revenue growth was driven, in large part, by the Company’s efforts to stock third-party wholesalers and retailers following the February 2022 acquisition of HEYDUDE; (2) that as the Company’s retail partners began to destock this excess inventory, waning product demand further negatively impacted the Company’s financial results; and (3) that as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

If you purchased or otherwise acquired Crocs common stock during the Class Period, you may move the Court no later than March 24, 2025 to request appointment as lead plaintiff in this putative class action lawsuit.

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: [e-mail]
Telephone: [phone],
Toll-Free: 888-773-9224
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.

If you inquire by email, please include your mailing address, telephone number and number of shares purchased.

To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.