Dive Brief:
Nike alum Patraic Reagan will assume the CFO seat for Crocs Inc. effective Sept. 22, succeeding finance chief Susan Healy, the company said in a securities filing on Friday.
Healy, who has served as CFO for the Broomfield, Colorado-based company since June 2024, announced her intent to resign on Thursday, the company said. She will act as a special adviser to help facilitate a smooth transition until her departure on Oct. 31, according to the filing with the Securities and Exchange Commission. Healy will receive a payment of $25,000 on Sept. 5 and a payment of $50,000 on Oct. 3 in association with her advisory role, as well as continued payment of benefits, the company said.
Crocs in a Friday press release also reaffirmed its guidance for its upcoming third quarter, issued on Aug. 7 as part of its Q2 earnings report. For its Q3, Crocs is anticipating revenues to decline by between 9% to 11% year over year. The company is also expecting adjusted operating margin of between 18% to 19% for its third quarter, which includes an expected negative impact of approximately 170 basis points from “announced and pending tariffs,” according to its Q2 report. The company has not reinstated its full-year guidance.
Dive Insight:
Reagan will join the shoe brand from appliance firm SharkNinja, where he has served as CFO since April 2024, according to his LinkedIn profile. He previously served a 13-year span at Nike, where he acted in various roles including as vice president and CFO of Asia, Pacific and Latin America, and vice president of global business planning.
As CFO for Crocs, Reagan is set to receive an annual base salary of $750,000, and will also be eligible for an annual target bonus of 100% of his eligible earnings for the 2025 plan year, according to the filing. He will also be eligible to participate in the company’s long-term incentive plan for the 2026 plan year, with a target equity award value of 267% of his base salary. He will also receive a sign-on bonus of $800,000, according to the filing.
“Crocs, Inc. is a company that I have long admired — one whose profitable growth has been built on an enduring cultural icon and one where I see untapped potential across both the Crocs and Heydude brands,” Reagan said in a statement included in the Friday release. “Drawing from my global experience of leading high-growth brands through disciplined execution, I look forward to working alongside the talented leadership team to unlock shareholder value and drive consistent results for years to come.”
The CFO switch is occurring as the brand focuses on managing expenses and boosting cost savings amid an operating environment that is “uncertain and challenging to predict,” CEO Andrew Rees said in a statement included in the company’s most recent earnings.
The shoe company has already moved to implement $50 million in cost savings, and is working to identify other savings opportunities, Rees said during Crocs’ Q2 earnings call, according to a transcript. The shoe brand is also taking a more conservative approach to its inventory, “proactively pulling back on receipts” across both its Crocs and Heydude brand — a shoe brand it acquired in 2022 — for the second half of 2025, Rees said.
For its second quarter ended June 30, consolidated revenues jumped by 3.4% to $1.1 billion. Crocs also reported a quarterly loss from operations of $428 million, a 231% decrease from income of $326 million for the prior year period. The company attributed the loss to asset impairments related to its Heydude brand, including a noncash impairment of charge of approximately $737 million on its intangible assets, Healy said during the earnings call.
“This impairment comes as a result of a longer-than-expected time line to stabilize the Heydude brand and return it to growth, due in part to a weaker U.S. consumer and the disproportionate impact of tariffs on Heydude product,” Healy said.
Crocs is also taking steps to hedge against the expected impact of tariffs which may be levied against several countries from which the brand sources its products, Healy said during the earnings call. During the second half of the year, Crocs is expecting an impact from incremental tariff rates to reach approximately $40 million, and to climb to approximately $90 million on an annual basis based on its current sourcing mix, Healy said.
SharkNinja and Crocs did not immediately respond to requests for comment.