Wall Street wasn't thrilled with the latest earnings report from (NASDAQ: CROX). The footwear specialist's share prices fell immediately following the late-July announcement that showed slowing growth rates. Crocs also projected declining profit margins in the upcoming quarter, potentially signaling weaker demand trends ahead.

But the overall report was positive, and there were some encouraging signs about the business that investors shouldn't ignore. Let's take a closer look at the results, as well as two green flags about Croc's future some investors might be missing.

There's no escaping the fact that sales trends show slowing. Crocs reported an 11% year-over-year revenue boost following a 34% increase in the prior quarter. But that slowdown is to be expected now that the company has incorporated the HeyDude acquisition into its sales footprint. Growth in the direct-to-consumer segment was especially strong at 27% year over year. In contrast, sales through Crocs' wholesale partners rose by less than 1% year over year.

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Source Fool.com