Crocs (NASDAQ:CROX) Shares Down 12.4% - Time to Sell?

Key Points

• Crocs shares fell 12.4% after the company’s weaker-than-expected third-quarter outlook overshadowed record second-quarter revenue of $1.179 billion and adjusted EPS of $4.55.
• Management raised full-year 2026 adjusted EPS guidance to $13.70–$14.00, maintained its 1%–2% revenue-growth outlook, and expanded its share-repurchase authorization by $1.5 billion.
• Investors remain concerned about HEYDUDE revenue declining 5.7% and the softer near-term forecast, although analysts maintain a “Moderate Buy” consensus with an average price target of $128.

Crocs, Inc. (NASDAQ:CROX - Get Free Report) shares traded down 12.4% during mid-day trading on Thursday . The company traded as low as $113.00 and last traded at $116.9450. 495,045 shares were traded during mid-day trading, a decline of 59% from the average session volume of 1,220,165 shares. The stock had previously closed at $133.52.

Crocs News Summary

Here are the key news stories impacting Crocs this week:

• Positive Sentiment: Crocs reported record second-quarter revenue of $1.179 billion, up 2.6% year over year, exceeding the $1.15 billion consensus estimate. Adjusted earnings of $4.55 per share also topped expectations of approximately $4.32-$4.35. Crocs Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Management raised its full-year 2026 adjusted EPS outlook to $13.70-$14.00, above the roughly $13.67 analyst consensus, while maintaining revenue expectations for approximately 1%-2% growth. Crocs Reports Record Second Quarter Results
• Positive Sentiment: The company increased its share-repurchase authorization by $1.5 billion, leaving approximately $2.0 billion available for future buybacks. Crocs Brand quarterly revenue also surpassed $1 billion for the first time. Crocs Q2 Revenue and Outlook
• Neutral Sentiment: Trading in CROX was temporarily halted under a Limit Up-Limit Down pause, reflecting heightened volatility around the earnings release.
• Negative Sentiment: Third-quarter guidance called for adjusted EPS of $3.20-$3.30 and revenue of about $996 million, below analyst expectations of $3.55 EPS and approximately $1.0 billion in revenue. The softer near-term outlook was the main reason the earnings beat failed to support the stock. Crocs Shares Sink After Soft Third-Quarter Outlook
• Negative Sentiment: HEYDUDE Brand revenue declined 5.7% to $179 million, highlighting continued weakness outside the core Crocs Brand. Recent insider activity also showed sales and no purchases, though such transactions are secondary to the guidance reaction.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the company. Seaport Research Partners increased their price target on Crocs from $135.00 to $160.00 and gave the company a "buy" rating in a research note on Monday, July 20th. Royal Bank Of Canada initiated coverage on shares of Crocs in a research note on Monday, June 8th. They set an "overweight" rating for the company. Williams Trading set a $150.00 price target on shares of Crocs in a research note on Tuesday, June 9th. Bank of America boosted their price objective on Crocs from $145.00 to $160.00 and gave the stock a "buy" rating in a report on Thursday, July 23rd. Finally, Weiss Ratings reiterated a "sell (d+)" rating on shares of Crocs in a research note on Monday, July 6th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, Crocs currently has a consensus rating of "Moderate Buy" and an average price target of $128.00.

Crocs Trading Down 10.0%

The company has a debt-to-equity ratio of 0.93, a current ratio of 1.67 and a quick ratio of 1.04. The company has a market capitalization of $5.97 billion, a price-to-earnings ratio of -86.76, a P/E/G ratio of 1.41 and a beta of 1.55. The business's 50-day moving average price is $125.21 and its two-hundred day moving average price is $102.93.

Crocs (NASDAQ:CROX - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The textile maker reported $4.55 EPS for the quarter, topping analysts' consensus estimates of $4.35 by $0.20. Crocs had a positive return on equity of 48.29% and a negative net margin of 2.58%.The firm had revenue of $1.18 billion for the quarter, compared to analyst estimates of $1.15 billion. During the same quarter last year, the company earned ($8.82) EPS. The company's revenue was up 2.6% on a year-over-year basis. Crocs has set its FY 2026 guidance at 13.700-14.000 EPS and its Q3 2026 guidance at 3.200-3.300 EPS. Research analysts predict that Crocs, Inc. will post 13.66 earnings per share for the current year.

Insider Transactions at Crocs

In other news, CEO Andrew Rees sold 32,688 shares of the stock in a transaction on Friday, June 5th. The stock was sold at an average price of $118.09, for a total value of $3,860,125.92. Following the completion of the transaction, the chief executive officer directly owned 743,293 shares in the company, valued at approximately $87,775,470.37. This represents a 4.21% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 3.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Crocs

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Oldfield Partners LLP acquired a new stake in Crocs during the second quarter worth approximately $2,449,000. Stonehearth Capital Management LLC acquired a new stake in shares of Crocs during the 2nd quarter worth approximately $201,000. GAMMA Investing LLC increased its stake in shares of Crocs by 15.1% in the 2nd quarter. GAMMA Investing LLC now owns 2,394 shares of the textile maker's stock valued at $289,000 after acquiring an additional 314 shares in the last quarter. Pacer Advisors Inc. lifted its position in shares of Crocs by 5.7% during the 1st quarter. Pacer Advisors Inc. now owns 339,478 shares of the textile maker's stock valued at $28,183,000 after acquiring an additional 18,220 shares during the period. Finally, 7G Capital Management LLC bought a new position in Crocs during the first quarter worth $3,445,000. 93.44% of the stock is owned by institutional investors and hedge funds.

Crocs Company Profile

Crocs, Inc is a global footwear designer, developer and distributor best known for its lightweight, proprietary Croslite™ foam-clog construction. The company's product portfolio encompasses a range of styles, including clogs, sandals, slides, boots and sneakers, all featuring the slip-resistant, odor-resistant and cushion-providing qualities of the Croslite material. Crocs distributes its products through an omnichannel network that includes e-commerce platforms, company-owned retail stores, authorized dealers and wholesale partners.

Founded in 2002 by Scott Seamans, Lyndon “Duke” Hanson and George Boedecker Jr., Crocs launched its first clog on the island of Vail, Colorado.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.