Crocs (NASDAQ:CROX) Announces Earnings Results

Crocs (NASDAQ:CROX) released its earnings results on Thursday. The textile maker reported $3.69 earnings per share for the quarter, topping the consensus estimate of $3.31 by $0.38, FiscalAI reports. The business had revenue of $1.04 billion during the quarter, compared to the consensus estimate of $1 billion. Crocs had a return on equity of 47.75% and a net margin of 14.64%. The business’s revenue for the quarter was up 4.7% compared to the same quarter last year. During the same period last year, the company 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 Trading Up 25.5%

NASDAQ:CROX opened at $150.26 on Friday. Crocs has a one year low of $73.21 and a one year high of $151.82. The company has a debt-to-equity ratio of 0.94, a quick ratio of 0.96 and a current ratio of 1.49. The firm has a market cap of $7.20 billion, a P/E ratio of 12.99, a P/E/G ratio of 1.00 and a beta of 1.56. The firm has a 50-day simple moving average of $119.86 and a 200-day simple moving average of $109.41.

Key Headlines Impacting Crocs

Here are the key news stories impacting Crocs this week:

• Positive Sentiment: Third-quarter adjusted earnings were $3.69 per share, exceeding the $3.31 analyst consensus, while revenue increased 4.6% year over year to $1.043 billion, ahead of expectations. Crocs third-quarter results
• Positive Sentiment: Management raised its full-year revenue-growth forecast to approximately 3%, from a prior range of 1% to 2%, and increased its earnings outlook. Fourth-quarter revenue is expected to grow approximately 7% to 9% year over year. Reuters outlook report
• Positive Sentiment: HEYDUDE revenue returned to growth, rising 6.1%, while Crocs Brand revenue increased 4.4%. Direct-to-consumer sales grew 6.9%, indicating continued demand through the company’s own channels. Benzinga HEYDUDE report
• Positive Sentiment: Gross margin expanded to 66.2% from 58.5% a year earlier, operating income rose 40.6%, and Crocs repurchased approximately $250 million of stock. Needham upgraded the shares to “buy” and raised its price target to $190. Needham price-target update
• Neutral Sentiment: International growth is helping offset weaker U.S. performance, but the recovery remains uneven by region. A tariff refund also contributed to GAAP earnings, meaning some of the quarterly profit increase may not be recurring. International sales analysis
• Negative Sentiment: The rally has pushed CROX near its 52-week high, increasing the risk of profit-taking and raising the bar for future results. Investors will also watch whether HEYDUDE’s improvement and stronger margins can persist without one-time benefits.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on CROX shares. Barclays upgraded shares of Crocs from an “equal weight” rating to an “overweight” rating and lifted their price objective for the company from $118.00 to $139.00 in a report on Thursday, October 15th. Wall Street Zen upgraded shares of Crocs from a “buy” rating to a “strong-buy” rating in a research note on Saturday, October 24th. Monness Crespi & Hardt raised their target price on shares of Crocs from $130.00 to $160.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. Robert W. Baird set a $163.00 target price on shares of Crocs in a research report on Friday, July 31st. Finally, Piper Sandler reaffirmed an “overweight” rating on shares of Crocs in a research note on Friday, July 31st. One equities research 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 issued a Sell rating to the company. According to data from MarketBeat, Crocs currently has a consensus rating of “Moderate Buy” and a consensus price target of $148.50.

Insider Buying and Selling

In related news, CEO Andrew Rees sold 19,072 shares of the business’s stock in a transaction that occurred on Monday, August 10th. The shares were 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 owned 713,293 shares of the company’s stock, valued at $99,083,530.63. The trade was a 2.60% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Beth J. Kaplan bought 885 shares of the stock in a transaction on Tuesday, September 15th. The shares were bought at an average price of $112.12 per share, with a total value of $99,226.20. Following the acquisition, the director owned 15,259 shares of the company’s stock, valued at $1,710,839.08. This trade represents a 6.16% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 3.10% of the stock is currently owned by company insiders.

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.