Shares of Crocs, Inc. (CROX) fell more than 18% on Tuesday after the company’s third-quarter results were overshadowed by weak sales of its smaller Heydude brand.

The shoe company reported $1.06 billion in incomejust above estimates compiled by Visible Alpha, while profit of $199.8 million also beat estimates of $187.3 million.

Investor concerns seemed to come from Heydude shoe sales—a Crocs company acquired in 2022. Heydude revenue fell short of estimates by $204 million, and the company also updated its full-year projections, expecting a larger decline in Heydude sales than had been expected. been previously announced.

Heydude sales continue to drag down profits

Chief Executive Officer (CEO) Andrew Rees said Crocs had seen positive results from its investment in new marketing for the brand, but noted that Heydude’s “recent performance and current operating environment indicate that it will take longer than initially anticipated for the brand to turn a corner.”

The company said it expects fourth-quarter revenue to be about flat to up slightly year-over-year, with 2% revenue growth of Crocs being probably offset by a 4 to 6% drop in Heydude sales. Analysts expected Heydude’s revenue for the current quarter is expected to reach $251.3 million, up from $227.6 million a year ago.

Crocs also updated its annual report revenue growth projectionsexpecting to be at the lower end of a previously forecast 3-5% range. Crocs’ revenue is expected to reach a midpoint of 8% growth, while Heydude’s revenue is now expected to fall 14.5% year-over-year, compared to a previous range of 8% to 10%.

“Even as we readjust our full-year outlook for HEYDUDE, I remain confident in the long-term trajectory of the brand,” Rees said in a press release.

Crocs shares recently fell more than 18.5% on Tuesday to $112.49.