Crocs Appoints Former Nike Executive as Chief Financial Officer

Brief Overview:

• Former Nike executive Patraic Reagan will, starting September 22,become the Chief Financial Officer of footwear brand Crocs Inc., succeeding finance chief Susan Healy, according to a securities filing submitted by the company on August 29.
• Healy, who had served as CFO of the Broomfield, Colorado-based company since June 2024, announced her intention to resign on August 28. According to the filing, she will serve as a special advisor to assist with a smooth transition until her departure on October 31. The company will pay her $25,000 and $50,000 in consulting fees on September 5 and October 3, respectively, and will continue to provide benefits.
• In addition to announcing the CFO change, Crocs also, in a Friday press release,reaffirmed its third-quarter earnings guidance, which was issued on August 7 alongside its second-quarter results. According to the August 7 announcement, Crocs expects third-quarter revenue to decline year-over-year by9% to 11%. The company also expects third-quarter adjusted operating margin to be between 18% and 19%, which includes an anticipated negative impact of approximately 170 basis points from "announced and pending tariffs." The company has not yet reinstated full-year guidance.

In-Depth Analysis:

Reagan will join Crocs from appliance company SharkNinja, where, according to his LinkedIn profile, he had served as CFO since April 2024. Previously, he spent 13 years at Nike, holding various positions including Vice President and CFO for Asia-Pacific and Latin America, and Vice President of Global Business Planning.

"We thank Patraic for his leadership and many contributions during his time at SharkNinja and wish him all the best in his new chapter," a SharkNinja spokesperson told CFO Dive via email. "We are pleased to appoint Adam Quigley as interim Chief Financial Officer, who has been with SharkNinja for nearly 11 years."

Quigley most recently served as the company's Senior Vice President of Global Planning, and the company stated that over the past decade he has "played a key role in shaping financial strategy and strengthening the global business." "With Adam's deep understanding of the business and his strong track record, we are confident the transition will be smooth and execution will remain strong."

According to the filing, upon becoming Crocs' CFO, Reagan will receive an annual base salary of $750,000 and will be eligible for an annual target bonus for fiscal 2025 equal to 100% of his qualifying earnings. He will also be eligible to participate in the company's long-term incentive plan for fiscal 2026, with a target equity award valued at 267% of his base salary. Additionally, he will receive a signing bonus of $800,000.

"Crocs, Inc. is a company I have long admired—its profitable growth is built on an enduring cultural icon, and I also see untapped potential in both the Crocs and HEYDUDE brands," Reagan said in a statement in Friday's press release. "With my experience leading high-growth brands globally through disciplined execution, I look forward to working with the excellent leadership team to create value for shareholders and drive consistent, strong performance in the years ahead."

This CFO change comes as the company focuses on expense management and enhancing cost savings, with CEO Andrew Rees describing the current operating environment as "uncertain and difficult to predict" in the August 7 earnings statement.

The footwear company has initiated a $50 million cost savings program and is working toidentify other savings opportunities, Rees said on Crocs' second-quarter earnings call. The brand has also adopted a more conservative inventory strategy, "proactively reducing receipts" in the second half of 2025, affecting both the Crocs and HEYDUDE brands—the latter being the footwear brand the companyacquired in 2022。

For the second quarter ended June 30, consolidated revenue increased 3.4% year-over-year to $1.1 billion. Crocs also reported a quarterly operating loss of $430 million, a 231% decline from a profit of $326 million in the same period last year. The company attributed the loss to asset impairments related to the HEYDUDE brand, including a non-cash impairment charge of approximately $737 million for intangible assets, CFO Healy said on the earnings call.

"This impairment is due to the fact that stabilizing and returning HEYDUDE to growth is taking longer than expected, partly due to weak U.S. consumer spending and the greater impact of tariffs on HEYDUDE products," Healy said.

Healy also said on the earnings call that Crocs is taking steps to hedge against the anticipated impact of tariffs that could target multiple countries where the brand sources products. In the second half of the year, Crocs expects the impact of incremental tariff rates to be approximately $40 million, which, based on the current sourcing mix, would rise to approximately $90 million on an annualized basis.

Crocs did not immediately respond to a request for comment.