Crocs (NASDAQ:CROX) Issues Earnings Results, Beats Expectations By $0.37 EPS

Crocs (NASDAQ:CROX) released its quarterly earnings results on Thursday. The textile maker reported $2.29 EPS for the quarter, beating the consensus estimate of $1.92 by $0.37, FiscalAI reports. Crocs had a net margin of 4.48% and a return on equity of 43.14%. The company had revenue of $957.64 million for the quarter, compared to analyst estimates of $916.16 million. During the same quarter last year, the business earned $2.52 earnings per share. The firm’s revenue was down 3.3% on a year-over-year basis. Crocs updated its FY 2026 guidance to 12.880-13.350 EPS and its Q1 2026 guidance to 2.670-2.770 EPS.

Here are the key takeaways from Crocs’ conference call:

• FY25 produced over $4.0 billion of revenue and $659 million of free cash flow, which funded repurchases of ~6.5 million shares for $577 million and $128 million of debt paydown, leaving net leverage at the low end of the 1.0–1.5x target range.
• The Crocs brand showed momentum with a better-than-expected holiday, double-digit international growth (China +30%), DTC representing >50% of enterprise revenue and outpacing wholesale, and product diversification (clogs 74% of mix, sandals ~13%, expanding personalization and high-profile partnerships like LEGO).
• HEYDUDE revenue declined 14% in FY25 to $715 million after aggressive wholesale cleanup and reduced performance marketing (about $45 million of foregone revenue in H2), though management expects the brand to return to growth in H2 2026 as inventory and channels normalize.
• Tariffs remain a headwind (now an estimated unmitigated annualized impact of ~$80 million, with ~100bp Q1 and ~200bp Q2 GM pressure), but the company has identified $100 million of cost savings and expects modest full-year adjusted gross margin improvement and adjusted EPS of $12.88–$13.35.
• 2026 outlook is conservative: enterprise revenue guided to flat to down 1% (Crocs brand flat to +2% led by ~10% international growth offset by North America declines; HEYDUDE down ~7–9%), with Q1 revenue expected down 3.5%–5.5% and Q1 adjusted EPS of $2.67–$2.77.

Crocs Price Performance

Shares of Crocs stock traded up $17.69 during trading hours on Thursday, reaching $100.42. 2,829,705 shares of the company’s stock were exchanged, compared to its average volume of 1,152,738. The business has a fifty day moving average of $86.47 and a two-hundred day moving average of $84.66. The company has a market capitalization of $5.21 billion, a P/E ratio of 32.78 and a beta of 1.56. The company has a quick ratio of 0.83, a current ratio of 1.40 and a debt-to-equity ratio of 0.97. Crocs has a 1 year low of $73.21 and a 1 year high of $122.84.

More Crocs News

Here are the key news stories impacting Crocs this week:

• Positive Sentiment: Q4 results topped estimates — adjusted EPS of $2.29 beat consensus (~$1.92) and revenue of ~$957.6M topped forecasts, signaling stronger holiday demand than expected. Crocs (CROX) Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management raised FY‑2026 EPS guidance (12.88–13.35 vs. street ~12.10) and gave a stronger Q1 guide, which shifts investor expectations for material earnings growth next year. Crocs, Inc. Reports Fourth Quarter and Full-Year 2025 Results
• Positive Sentiment: Capital return and balance‑sheet moves: Crocs repurchased 6.5M shares for ~$577M and reduced debt, supporting EPS per share and investor confidence. Crocs, Inc. Reports Fourth Quarter and Full-Year 2025 Results
• Neutral Sentiment: Brand/region mix is mixed — the Crocs core brand and international sales showed strength over the holidays, helping the beat, while total company revenue still declined year‑over‑year. Crocs’s stock soars, as sales return to growth over the holidays
• Negative Sentiment: HeyDude weakness — the HeyDude brand saw a notable sales decline (~‑17%), which is a risk to overall revenue recovery if the trend continues. Crocs (CROX) Stock Jumps 14% After Beating Q4 Earnings Expectations
• Negative Sentiment: Margins and profitability remain uneven — reported net margin was modest and operating profit fell versus the prior year, underscoring execution risk despite the beat. Crocs Logs Lower Profit as Sales Fall

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Fuller & Thaler Asset Management Inc. grew its position in shares of Crocs by 78.7% in the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 907,988 shares of the textile maker’s stock valued at $77,651,000 after purchasing an additional 399,964 shares in the last quarter. Campbell & CO Investment Adviser LLC purchased a new position in Crocs during the fourth quarter worth approximately $1,658,000. Loomis Sayles & Co. L P boosted its stake in Crocs by 0.4% during the fourth quarter. Loomis Sayles & Co. L P now owns 120,050 shares of the textile maker’s stock worth $10,267,000 after buying an additional 483 shares during the last quarter. Picton Mahoney Asset Management increased its stake in shares of Crocs by 102,088.9% in the 4th quarter. Picton Mahoney Asset Management now owns 9,197 shares of the textile maker’s stock worth $787,000 after acquiring an additional 9,188 shares during the last quarter. Finally, Empowered Funds LLC increased its stake in shares of Crocs by 55.6% in the 4th quarter. Empowered Funds LLC now owns 50,909 shares of the textile maker’s stock worth $4,354,000 after acquiring an additional 18,201 shares during the last quarter. 93.44% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research firms have recently commented on CROX. UBS Group restated a “neutral” rating on shares of Crocs in a research report on Tuesday, February 3rd. Monness Crespi & Hardt increased their price target on Crocs from $92.00 to $100.00 and gave the stock a “buy” rating in a research report on Friday, October 31st. Needham & Company LLC reissued a “buy” rating and issued a $118.00 price objective on shares of Crocs in a report on Thursday. Stifel Nicolaus upped their target price on Crocs from $85.00 to $90.00 and gave the stock a “hold” rating in a research note on Friday, October 31st. Finally, Barclays increased their target price on Crocs from $81.00 to $86.00 and gave the company an “equal weight” rating in a research report on Friday, October 31st. Four research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, Crocs currently has an average rating of “Hold” and an average price target of $96.27.

About Crocs

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.