Crocs (NASDAQ:CROX) Announces Earnings Results, Beats Estimates By $0.38 EPS

Key Points

• Crocs exceeded third-quarter expectations: Adjusted EPS was $3.69 versus the $3.31 consensus, while revenue reached $1.04 billion, up 4.7% year over year and ahead of estimates.
• Management raised its full-year outlook: Revenue growth guidance increased to approximately 3%, adjusted EPS guidance was set at $14.45–$14.65, and fourth-quarter revenue is expected to rise 7%–9%.
• Growth broadened across both brands, but risks remain: Crocs and HEYDUDE returned to growth, supported by international demand and wholesale momentum, while management cited weaker lower-income consumers, cautious wholesale partners, and a temporary North American channel shift.

Crocs (NASDAQ:CROX - Get Free Report) posted its earnings results on Thursday. The textile maker reported $3.69 earnings per share for the quarter, topping analysts' consensus estimates of $3.31 by $0.38, FiscalAI reports. The company had revenue of $1.04 billion during the quarter, compared to analyst estimates of $1 billion. Crocs had a return on equity of 47.75% and a net margin of 14.64%. Crocs's revenue was up 4.7% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.92 earnings per share.

Here are the key takeaways from Crocs' conference call:

• Raised full-year outlook: Crocs increased 2026 revenue guidance to approximately 3% growth from 1%-2% previously and lifted adjusted EPS guidance to $14.45-$14.65. Fourth-quarter revenue is expected to rise 7%-9%.
• Both brands returned to growth: Third-quarter enterprise revenue exceeded $1 billion, up 5%, with Crocs revenue up 4% and HEYDUDE up 6%. Crocs cited strong international demand and product diversification, while HEYDUDE benefited from wholesale growth and improved inventory and full-price selling.
• Profitability and cash generation remained strong: Adjusted operating margin expanded 150 basis points to 22.3%, while adjusted EPS rose 26% to $3.69. The company repurchased approximately $250 million of shares and paid down $21 million of debt during the quarter.
• North American Crocs sales face a temporary channel headwind: A business-model shift is moving revenue from direct-to-consumer to wholesale, creating an estimated 700-800 basis-point DTC headwind over the next several quarters. Management said the shift does not affect units or market share and expects underlying North American growth excluding the impact.
• Consumer and international risks remain: Management described a K-shaped consumer environment, with weakness among lower-income shoppers, and said wholesale partners remain cautious. HEYDUDE’s international business is still small and is expected to require time and measured investment before becoming a meaningful growth driver.

Crocs Stock Performance

Shares of CROX traded up $30.80 during mid-day trading on Thursday, reaching $150.49. The company had a trading volume of 2,412,321 shares, compared to its average volume of 1,185,568. The stock has a market capitalization of $7.21 billion, a P/E ratio of 13.02, a PEG ratio of 0.99 and a beta of 1.56. Crocs has a 52-week low of $73.21 and a 52-week high of $151.82. The stock has a 50 day moving average of $119.37 and a two-hundred day moving average of $109.09. The company has a quick ratio of 0.96, a current ratio of 1.49 and a debt-to-equity ratio of 0.94.

Insider Buying and Selling

In other Crocs news, CEO Andrew Rees sold 19,072 shares of the business's stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $138.91, for a total value of $2,649,291.52. Following the completion of the transaction, the chief executive officer directly owned 713,293 shares of the company's stock, valued at approximately $99,083,530.63. The trade was a 2.60% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Beth Kaplan acquired 885 shares of the stock in a transaction on Tuesday, September 15th. The stock was bought at an average price of $112.12 per share, for a total transaction of $99,226.20. Following the transaction, the director owned 15,259 shares in the company, valued at approximately $1,710,839.08. This represents a 6.16% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 3.10% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the company. Wall Street Zen upgraded Crocs from a "buy" rating to a "strong-buy" rating in a report on Saturday, October 24th. Weiss Ratings upgraded Crocs from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday. UBS Group upped their target price on Crocs from $107.00 to $120.00 and gave the company a "neutral" rating in a research report on Friday, July 31st. The Goldman Sachs Group reiterated a "sell" rating and issued a $95.00 price target on shares of Crocs in a research note on Friday, July 31st. Finally, Robert W. Baird set a $163.00 price target on Crocs in a research note on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $141.20.

Trending Headlines about Crocs

Here are the key news stories impacting Crocs this week:

• Positive Sentiment: Q3 results exceeded expectations. Adjusted earnings were $3.69 per share versus the $3.31 consensus estimate, while revenue reached $1.043 billion, ahead of forecasts near $1.00 billion. EPS increased from $2.92 in the prior-year quarter. Crocs Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: Profitability improved substantially. GAAP diluted EPS rose 67.4% to $4.52, operating income increased 40.6% to $291.9 million, and gross margin expanded to 66.2% from 58.5% a year earlier. Crocs Reports Strong Third Quarter Results
• Positive Sentiment: Management raised its outlook for the third consecutive time. Full-year revenue growth guidance increased to approximately 3%, from a previous range of 1% to 2%, while fourth-quarter revenue is expected to grow 7% to 9% year over year. The company also provided a fourth-quarter adjusted EPS range of $3.25 to $3.45. Crocs Stock Gains on Earnings Beat and Guidance Boost
• Positive Sentiment: Growth broadened across the portfolio. Crocs Brand revenue rose 4.4%, HEYDUDE revenue returned to growth with a 6.1% increase, and direct-to-consumer sales advanced 6.9%. Crocs repurchased approximately 2.0 million shares for $250 million during the quarter. Crocs Shows Broad Sales Momentum
• Neutral Sentiment: Insider activity was mixed: several insiders purchased shares, while CEO Andrew Rees reported multiple sales. Institutional ownership changes were also divided, with some major funds adding and others reducing positions.

About Crocs

Crocs, Inc is a global footwear company best known for its Crocs brand of casual, lightweight shoes. Its product portfolio includes clogs, sandals, slides, boots and other casual footwear, along with accessories such as Jibbitz charms, which are designed to personalize Crocs shoes.

The company was founded in 2002 and introduced its first clog that year. Crocs has expanded from its original molded footwear into a broader lifestyle brand, offering products for women, men and children through company-operated and third-party retail stores, e-commerce platforms and wholesale partners.

In 2022, Crocs completed its acquisition of HEYDUDE, adding the casual shoe brand to its portfolio.

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