Crocs CEO Warns of Price Hikes Due to Tariffs as Company Suspends 2025 Guidance

Crocs Inc. CEO Andrew Rees provided a wealth of information to analysts during a May 8 conference call, perhaps most notably that the company does expect industry-wide price increases in the near future as a direct result of tariffs enacted by President Donald Trump.

According to Footwear News, Rees gestured toward pricing as a potential way of maintaining profits, particularly in the face of increased cost pressure being put forth by tariffs and other threats to the company’s bottom line.

“Depending on the level of incremental costs that may come from tariffs and other factors, we do expect the industry to go up in terms of price,” Rees told those on the call.

“So if prices go up, we would expect volumes to go down and would therefore plan accordingly,” he said. However, Rees indicated that this switch in Crocs’ operating model may not necessarily be a net negative.

“Higher price, higher margin and maybe slightly lesser volume is a much stronger place to be,” the CEO added.

Crocs Sourcing Comes From Vietnam, Indonesia, China, India, Mexico, and Cambodia — Tariffs Are on the Company’s Radar

Rees went on to share some concrete figures surrounding the footwear company’s sourcing while also adding commentary on the turbulent and unpredictable nature of the current tariff environment.

“The daily uncertainty as to the level of these tariffs makes it incredibly hard to plan and predict both short- and long-term impacts to our business,” Rees said. “As we sit here today, we have a well-diversified sourcing mix.”

Crocs sources nearly half (47%) of its U.S. market products from Vietnam, a country currently threatened with a 46% tariff rate by Trump, as The New York Times detailed. Other nations playing host to Crocs’ U.S.-bound sourcing include Indonesia (17%), India (13%), China (13%), Mexico (5%), and Cambodia (5%).

Perhaps as a response to the murky macroeconomic picture, Crocs also suspended its 2025 guidance. Rees sketched out a cost portrait related to tariffs ranging from $45 million (assuming a baseline 10% tariff) to $130 million (should the 145% tariffs on China remain in place). The latter figure, the CEO noted, was unlikely to occur as Crocs would simply refuse to “bring the goods in. We’d cancel off some orders.”

Finally, Rees noted that Crocs was “rapidly shifting sourcing to other countries” as part of a larger diversification plan.