Why I Added to My CROX Position

Crocs stock fell 27% on earnings, but I added to my CROX position. Here’s why I believe in dollar-cost averaging, brand strength, and long-term durability despite short-term uncertainty.

Lou LaMedica

Aug 7, 2025

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Why I Added to My CROX Position

On August 7, Crocs reported earnings and the stock got hammered — down 27% in a single day. Headlines screamed about collapsing guidance, tariffs, and the company’s biggest one-day drop in nearly 14 years. Most investors ran. I bought more.

Here’s my view.

Crocs is a strong brand. My kids each have multiple pairs, and every kid I see running around our neighborhood does too. This isn’t a complicated business with smoke and mirrors — they make shoes that people actually want to wear. The clogs, the sandals, the slides. People slip them on every morning, wear them until they fall apart, and then buy another pair. That’s not going away anytime soon.

Yes, management pulled guidance. But that’s less about Crocs suddenly falling apart and more about tariffs being in their nascency — nobody really knows how they’ll shake out yet. That’s uncertainty, not weakness. And underneath the scary headlines, the numbers weren’t all bad: revenue ticked higher, adjusted earnings beat expectations, and the Crocs brand itself grew 5%. Even HeyDude, the lagging side of the business, saw declines narrow meaningfully.

This post is partly a way for me to look back and remember what I was thinking when I made the purchase. I even told my kids: if we liked the business at $100, then when it drops to $75 we have to love it. So we held our breath and bought.

Adding here isn’t about chasing some quick rebound — it’s about dollar-cost averaging into a brand I believe will still be standing strong years from now.

Crocs may wobble in the short term, but I believe they’ll still be on the feet of kids (and adults) everywhere for a long time to come.

(For the background on why I first invested in CROX, see this earlier post.)

“Know what’s enough. Build what matters.”

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