Crocs Retools HeyDude Leadership with New President
Crocs Inc. is set to bring on Stanley Brand President Terence Reilly later this month as head of HeyDude, hoping to tap the marketing vet’s experience to drive a global business out of the casual shoe company
Crocs revealed the new appointment Tuesday with Reilly set to take on the executive vice president and president position at HeyDude April 29. Meanwhile, Rick Blackshaw will vacate the president position immediately, the company said.
A separate SEC filing by Crocs Inc. on Tuesday indicated Blackshaw is to receive a lump sum of $675,000 as part of his severance package. The former president joined HeyDude in December 2021.
Reilly’s appointment marks a return for the executive who was at Crocs between 2013 and 2020, most recently as senior vice president and chief marketing officer. He parted ways with the company in 2020 to take on the top spot at Stanley, helping make the company’s Quenchers some of the most sought-after drinkware.
The hope is the marketing executive can perform the same magic for HeyDude as Crocs, which paid $2.5 billion for the brand in 2021, looks to rapidly grow the business.
“Terence has had tremendous success in creating and executing brand-building playbooks at both Stanley and Crocs by leveraging iconic product, scaling awareness, driving brand relevance and ultimately building communities,” Crocs Inc. CEO Andrew Rees said in a statement. “Having previously worked alongside him, I am confident he is the right person to lead the HeyDude brand into its next phase of growth.”
Next Level Growth Plan
Some of that heavy lifting to expand the business began last year when HeyDude began severing ties with some smaller mom-and-pop shops in favor of distribution with larger retailers. The move led to quarterly pressure on sales with HeyDude revenue in the fourth quarter down 18.5% from the year-ago period to $228 million on account of the distribution changes.
The brand still managed to end the year with annual revenue rising 6% to $949 million, driven by an 18.9% jump in direct-to-consumer.
Another aspect of the distribution rework is an aggressive outlet expansion plan for HeyDude akin to the strategy for sister brand Crocs.
The company said in February it expects to open 30 outlet doors for HeyDude throughout this year, which reflects a major growth spurt from the five opened in the second half of 2023.
Rees said in February the new strategy offers a more “focused approach to how we allocate inventory by account, and we expect to see more evidence of account and channel segmentation as we move throughout the year.”
Added Reilly on his appointment: “I see significant opportunity to further drive awareness, desirability and relevance to the HeyDude brand and we will work together with the team to build a durable, profitable growth brand over time.”
Crocs Inc. is expected to report first-quarter results May 7.