Financial Data and Key Metrics Changes - The company reported a Q3 sales guidance decline of 9% to 11%, primarily driven by the Hey Dude brand, while the Crocs brand is expected to decline in the low single digits with international growth [10][44] - The company emphasized its high profitability and cash flow, which is a key part of its shareholder return strategy [7][56] Business Line Data and Key Metrics Changes - The Crocs brand constitutes about 80% of the business, while Hey Dude accounts for approximately 20% [5][6] - The Crocs brand is experiencing a low single-digit decline, while Hey Dude is facing more significant challenges [10][19] Market Data and Key Metrics Changes - International sales for Crocs surpassed domestic sales for the first time in Q2, indicating strong growth potential outside the U.S. [25] - The company identified key international markets such as China, Japan, Western Europe, India, and South Korea as areas of focus for growth [26][28] Company Strategy and Development Direction - The company is focusing on reducing discounts to protect brand value and improve net pricing [9][20] - Strategic actions include cleaning up the wholesale market for Hey Dude and reallocating marketing spend from performance to brand marketing [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding consumer spending, noting a more cautious consumer environment and potential headwinds from athletic trends [8][19] - The outlook for the U.S. consumer is expected to remain stable, while there may be improvements in Asian markets [44][45] Other Important Information - A new CFO, Patrick Reagan, will join the company on September 22, bringing extensive footwear experience [11][12] - The company is innovating in marketing strategies, particularly through social selling and live streaming [39][43] Q&A Session Summary Question: Insights on back-to-school trends - Management noted that back-to-school is not a peak period for their brands, but tax holidays provided some benefits [15][16] Question: Key drivers of cautious tone in North America - The primary driver is consumer concern, with no immediate pivot expected in consumer behavior [19][20] Question: International market opportunities - Management sees significant white space internationally, with average market share in international markets being about a third of that in the U.S. [25][28] Question: Competitive landscape - The competitive landscape is dynamic, with both smaller brands and larger competitors posing challenges [46][47] Question: Pricing strategy - The company is strategic about pricing, anticipating a systemic rise in footwear prices over the next 12 to 18 months [49][50] Question: Long-term margin guidance - Management reaffirmed that while the long-term margin target of 24% is viable, current conditions may not support that level [54][55]