Heydude brand grows in Q3 driven by wholesale in North America

Heydude, a brand under Crocs, returned to growth in the third quarter compared to weak results last year, largely due to wholesale revenue from retail partners, Retail Dive reported.

Crocs CEO Andrew Rees described the quarter as an important turning point for Heydude, crediting the company's three-pillar strategy focused on core consumers, diversifying products, and expanding in North America.

The brand has introduced new products like sandals, which are outperforming expectations, and the North American growth was mainly driven by a 14% increase in wholesale sales rather than opening many new stores.

As of March, Crocs operated 75 Heydude stores, up from 54 the previous year, but Rees emphasized that wholesale is a more cost-effective way to reach consumers than expanding retail locations.

The parent Crocs brand also experienced a record third quarter, boosted by international sales and product diversification, including a sold-out limited edition collaboration with Pendleton featuring vibrant wool colors.

Rees expressed satisfaction with the current brand portfolio, which helps build brand awareness and showcases a broader range of Heydude products beyond what is typically available through wholesale channels.