01:05 PM EDT, 08/07/2025 (MT Newswires) -- Crocs ( CROX ) said Thursday it expects third-quarter revenue to fall year over year, while the shoemaker opted against reinstating its full-year outlook amid cautious consumer spending behavior, sending the company's shares tumbling.

For the ongoing quarter, Crocs ( CROX ) expects revenue to decline by 9% to 11%. The outlook range is based on various factors, including the pullback of performance marketing for HEYDUDE, the incremental cleanup actions the company has decided to take for the brand, as well as "the potential range of outcomes against a weakening US consumer backdrop," Chief Financial Officer Susan Healy said during an earnings conference call, according to a FactSet transcript.

The company, which withdrew its full-year financial outlook in May, has decided against reinstating the guidance amid a difficulty to fully project the financial implications of evolving global trade policies and the resulting consumer purchasing patterns, Healy told analysts.

Crocs ( CROX ) shares were down 26% in Thursday afternoon trade. The stock has lost 29% in value so far this year.

The US recently extended the pause period on a various incremental tariffs on countries in which Crocs ( CROX ) sources its product. The impact from the incremental rates amounts to about $40 million in the second half of this year and $90 million on an annual basis, based on the company's current sourcing mix, Healy said on the call.

"We see the US consumer behaving cautiously around discretionary spending," Chief Executive Andrew Rees told analysts. "They are faced with current and implied future price increases, which we think has the potential to be a further drag on an already choiceful consumer."

Rees described the current backdrop in the second half as "concerning" and said the company has opted to "amplify" certain measures to "protect brand health and profitability." It pulled back on promotional activity for the Crocs brand across direct channels beginning in May, a move that is expected to impact its topline but potentially "drive margin dollars" over time, Rees said.

"From an expense perspective, we've already actioned $50 million of cost savings and are identifying further cost savings opportunities," the CEO added.

For the second quarter, Crocs ( CROX ) reported adjusted earnings of $4.23 a share, up from $4.01 a year earlier and above Wall Street's view for $4. Revenue improved 3.4% to $1.15 billion, ahead of the average analyst estimate of $1.14 billion. Crocs brand sales were up 5% to $959.6 million, while HEYDUDE revenue decreased 3.9% to $189.8 million.

"Over the last three years, we have made significant progress in diversifying our business, which will serve as a strong foundation to enable long-term sustainable growth," Rees said on the call.

Price: 78.70, Change: -26.43, Percent Change: -25.14