Crocs, Inc. (NASDAQ:CROX) reported third-quarter financial results and lowered its revenue guidance related to the HEYDUDE Brand on Tuesday.

The company reported adjusted earnings per share of $3.60 (+11%), beating the street view of $3.10. Quarterly revenues of $1.062 billion (+2%) beat the analyst consensus of $1.05 billion.

Crocs Brand revenues increased 7.4% to $858 million, or 7.9% on a constant currency basis. HEYDUDE Brand revenues decreased 17.4% to $204 million.

"We have sharpened our strategy around HEYDUDE as we work to create higher brand relevance through our product and marketing initiatives," said Andrew Rees, Chief Executive Officer. "HEYDUDE's recent performance and the current operating environment are signaling it will take longer than we had initially planned for the brand to turn a corner."

For the fourth quarter, the company sees adjusted diluted earnings per share of $2.20 to $2.28 versus $2.72 estimate. Revenues are expected to remain flat or increase slightly year over year. The Crocs brand is projected to grow by about 2%, while the HEYDUDE brand is expected to decline by 4% to 6%.

FY24 revenue growth is expected to be around 3% (the lower end of the previous 3% to 5% guidance), with Crocs brand growth at approximately 8% (prior view: 7% to 9%) and HEYDUDE brand revenue down about 14.5% (worse than the previous expectation of a 10% – 8% decline).

Crocs shares fell 0.8% to trade at $110.69 on Wednesday.

These analysts made changes to their price targets on Crocs following earnings announcement.

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