Crocs promotes Adidas vet to lead Heydude

Core Insights - Crocs has appointed Rupert Campbell as president of its struggling Heydude brand, effective immediately, as part of a strategic move to revitalize the brand's performance [5] - Heydude experienced a significant decline in Q3 sales, dropping nearly 22% year over year to $160 million, with wholesale revenue falling more than 38% [2] - The adjusted gross margin for Heydude decreased by 560 basis points to 42.3%, influenced by tariff challenges and fixed costs, although this was somewhat mitigated by an increase in average selling price [2] Company Performance - The decline in Heydude's sales is attributed to a strategic decision to eliminate underperforming wholesale partnerships, which may present a longer-term opportunity for recovery [3] - Despite the challenges, the recent sales report exceeded expectations, indicating that the situation may not be as dire as it appears [3] - Campbell's previous experience at Adidas, where he managed a market generating over $6 billion in revenue, is seen as a positive factor for his new role at Heydude [4] Leadership Changes - Rupert Campbell has been with Crocs since March, previously serving as senior vice president and chief commercial officer, where he was responsible for the brand's global commercial strategy [5] - Andrew Rees, CEO of Crocs, has expressed confidence in Campbell's ability to drive the marketing and commercial strategy for Heydude [4]