Crocs have always been uncool, but now they’re at risk of becoming unpopular.
Driving the news: Crocs released disappointing quarterly earnings this month, reporting weak sales and a pessimistic outlook that caused shares to plummet. The report had analysts wondering if the “ugly shoe” trend, which has dominated footwear in recent years, is fizzling out.
- On the earnings call, CEO Andrew Rees warned that “the consumer is migrating back towards athletic” footwear ahead of high-profile sporting events like the 2026 World Cup and the 2028 Olympics, which could pull sales away from shoes like Crocs.
Big picture: Ugly shoes — ones that put a premium on comfort over style — took off during the pandemic, and the ugliness associated with comfort eventually became the style. Shoes with utilitarian designs have only grown in popularity since, particularly with Gen Z, and we’re now living through “ugly shoe summer.”
- Crocs have been one of the biggest winners of this trend, with shares of the company up ~115% over the past five years as the clogs have become an unlikely red carpet staple.
- Besides Crocs, other ugly shoes that saw sales surge since the pandemic include chunky-heeled Hoka sneakers, hippy-core Birkenstock sandals, and hoof-like Maison Margiela tabis.
Why it matters: Broader market data would appear to back up at least parts of Rees’s claim. U.S. shoe sales dropped by 1% last quarter from the previous year, likely driven by tariff-related price bumps. However, sales of sports lifestyle and athleisure sneakers continued to grow.—QH