Crocs shares sink after Hey Dude deal announcement

Crocs stockholders aren't fans of the company's agreement to buy casual sandal brand Hey Dude for $2.5 billion, as shares on Thursday fell 11.6%, the most in a single day since April 2020.

Inside the deal: Crocs is trying to diversify beyond its trademark rubber clogs, which went from cool to uncool to cool again. Company sales for the third quarter were up 73% year-over-year, and shares hit an all-time high in early November.

• Even with Thursday's drop, Crocs' $7.27 billion market cap is still nearly double what it was one year ago.
• The deal for Hey Dude, which was founded in Italy in 2008, includes $2.05 billion in cash and $495 million in Crocs stock. All proceeds go to Hey Dude co-founder and CEO Alessandro Rosano.