Crocs(US:CROX) Prnewswireยท2025-02-07 15:28Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Crocs, Inc. related to misleading statements about the sustainability of HEYDUDE's revenue growth, with a deadline for investors to seek lead plaintiff status in a federal securities class action by March 24, 2025 [2][4]. Group 1: Company Overview - Crocs, Inc. completed the acquisition of HEYDUDE in February 2022, with HEYDUDE accounting for approximately 25% of Crocs' total revenues in 2022 [5]. - The company reports HEYDUDE sales in two segments: direct-to-consumer (DTC) and wholesale sales [5]. Group 2: Allegations and Financial Impact - The complaint alleges that Crocs and its executives made false statements regarding the nature and sustainability of HEYDUDE's revenue growth, particularly that 2022 growth was largely due to stocking third-party wholesalers rather than actual retail sales [4][6]. - Following the revelation of overstocking issues, Crocs' stock price declined significantly, with a drop of nearly 16% on April 27, 2023, and a further decline of nearly 15% on July 27, 2023, after the company reduced revenue growth guidance for HEYDUDE [7][9][8]. - On November 2, 2023, Crocs reported a 19.4% decline in HEYDUDE's wholesale revenues and further slashed its revenue growth guidance for 2023 from 14%-18% to 4%-6% [10][11]. Group 3: Recent Developments - On October 29, 2024, Crocs disclosed that HEYDUDE's revenues fell below expectations, attributing struggles to excess inventories and acknowledging that prior overstocking decisions were incorrect [12]. - This announcement led to a stock price decline of approximately 19.2% on the following day [13].