Crocs Inc. saw a significant drop in its stock, falling by as much as 16% in premarket trading after revising its sales outlook. The company reported no growth in sales for the third quarter, which includes the important back-to-school shopping season.

The expectations for sales growth in 2024 have been adjusted to 3%, which is at the lower end of the previous guidance range of 3% to 5%. The decline is mainly due to the performance of Crocs' HeyDude brand, which is known for its casual sneakers and loafers. The company now expects a 14.5% decrease in HeyDude's full-year sales compared to the previous year, which is a significant change from earlier forecasts that predicted a decline of 8% to 10%. This adjustment raises concerns about the brand's market position and overall revenue generation for Crocs.