Crocs Inc

Latest Results (17.11.2025):

Crocs Inc reported its third quarter 2025 financial results, showing mixed performance across its brands and channels. Consolidated revenues declined by 6.2% year-over-year to $996 million, while operating income fell 23% to $208 million, contributing to a drop in diluted earnings per share from $3.36 to $2.70. The company highlighted its strength in international markets for the Crocs Brand and noted significant share repurchases and debt reduction during the quarter.

Revenue & Margin Performance

Overall revenues decreased by 6.2% to $996 million, with gross margin declining 110 basis points to 58.5%. Direct-to-consumer growth was modest at 1.6%, while wholesale revenues fell significantly, reflecting challenging market dynamics.

Operating Income & EPS Decline

Operating income dropped 23% to $208 million, resulting in an operating margin of 20.8% compared to 25.4% last year. Diluted earnings per share decreased by nearly 20%, from $3.36 to $2.70, indicating pressure on profitability.

Capital Allocation & Financial Strength

The strong cash flow enabled Crocs Inc to repurchase 2.4 million shares for approximately $203 million and repay $63 million in debt, underpinning the company’s commitment to value creation and financial discipline.

Brand-specific Performance

For the Crocs Brand, revenues decreased slightly by 2.5% to $836 million, with a small growth in direct-to-consumer revenues and a 5.8% increase in international sales. In contrast, the HEYDUDE Brand experienced a sharper decline, with overall revenues falling 21.6%, highlighting differences in brand performance.

Forward Guidance

Looking ahead to the fourth quarter 2025, Crocs Inc expects an approximate 8% decline in overall revenues compared to Q4 2024. The guidance also includes a modest decrease in brand-specific revenues, ongoing cost savings initiatives, and a targeted adjusted operating margin of around 15.5%.