Heydude is embarking on an aggressive expansion plan to increase its number of outlets. In 2024, the company plans to open 30 new outlet stores, a significant jump from the five opened in the past six months. The surge in outlet openings stems from a strategic shift in 2023.
“We’re taking a focused approach to how we allocate inventory by account and expect to see more evidence of account and channel segmentation as we move throughout the year,” said Andrew Rees, CEO of parent company Crocs Inc., during an earnings call on Thursday.
So far, Heydude is pleased with the performance of its five outlets. The company aims to implement successful strategies used for Crocs, which has seen considerable success in retail recently.
In the fourth quarter, Heydude sold 7.4 million pairs of shoes, a decline of 18 percent due to the decision to exit several retailers, according to Anne Mehlman, CFO of Crocs Inc. Despite this, Heydude’s revenue fell 18.5 percent year-over-year to $228 million. Nevertheless, the brand managed to end 2023 with total revenue of $949 million, up 6 percent from the prior year.
