Crocs (NASDAQ:CROX) Issues Earnings Results, Beats Estimates By $0.20 EPS

Crocs (NASDAQ:CROX) announced its quarterly earnings results on Thursday. The textile maker reported $4.55 EPS for the quarter, beating the consensus estimate of $4.35 by $0.20, FiscalAI reports. Crocs had a negative net margin of 2.58% and a positive return on equity of 48.29%. The company had revenue of $1.18 billion for the quarter, compared to analyst estimates of $1.15 billion. During the same period in the prior year, the firm posted ($8.82) earnings per share. The firm’s revenue was up 2.6% on a year-over-year basis. Crocs updated its FY 2026 guidance to 13.700-14.000 EPS and its Q3 2026 guidance to 3.200-3.300 EPS.

Here are the key takeaways from Crocs’ conference call:

• Record second-quarter revenue reached $1.2 billion, up 2% year over year, with the Crocs brand exceeding $1 billion in quarterly sales for the first time and growing 4%.
• Crocs’ international revenue rose 7%, led by double-digit growth in China, India, and Japan, while North America returned to slight growth; management highlighted strong momentum in sandals, diversified clog franchises, ballet flats, and direct-to-consumer channels.
• HEYDUDE revenue declined 6% to $179 million but exceeded expectations, with direct-to-consumer sales up 7% and management expressing confidence that the brand will return to growth in the second half of 2026.
• Full-year guidance was raised to 1%-2% enterprise revenue growth, Crocs brand growth of 2%-3%, HEYDUDE revenue down 2%-4%, and adjusted EPS of $13.70-$14.00, up from the prior $13.20-$13.75 range.
• Tariffs reduced second-quarter adjusted gross margin by 160 basis points and enterprise margin fell 170 basis points to 60%; although cost savings and pricing are expected to offset some pressure, the outlook still assumes additional tariff-related uncertainty.
• The board authorized an additional $1.5 billion share-repurchase program, bringing total available authorization to approximately $2 billion; the company also repurchased $251 million of stock and paid down $31 million of debt during the quarter.

Crocs Stock Performance

Crocs stock traded down $9.86 during midday trading on Thursday, hitting $123.66. 3,007,030 shares of the company’s stock were exchanged, compared to its average volume of 1,239,246. The company has a debt-to-equity ratio of 0.93, a quick ratio of 1.04 and a current ratio of 1.67. The stock has a market cap of $6.14 billion, a price-to-earnings ratio of -89.61, a price-to-earnings-growth ratio of 1.41 and a beta of 1.55. Crocs has a 12-month low of $73.21 and a 12-month high of $140.42. The firm’s 50 day simple moving average is $125.21 and its 200 day simple moving average is $102.93.

Key Stories Impacting Crocs

Here are the key news stories impacting Crocs this week:

• Positive Sentiment: Quarterly earnings and revenue beat estimates. Crocs reported second-quarter revenue of approximately $1.18 billion, up 2.6% year over year, and adjusted EPS of $4.55 versus the roughly $4.35 consensus. The Crocs Brand surpassed $1 billion in quarterly revenue for the first time, supported by direct-to-consumer and international demand. Crocs Q2 Earnings Beat Estimates on DTC Growth, 2026 View Raised
• Positive Sentiment: Full-year 2026 guidance was raised. Crocs increased its adjusted EPS outlook to $13.70-$14.00, above the prior analyst consensus of approximately $13.67, while maintaining revenue expectations of roughly $4.1 billion. Crocs Reports Record Second Quarter 2026 Results
• Positive Sentiment: Shareholder returns received a boost. The board expanded Crocs’ share-repurchase authorization by $1.5 billion, leaving approximately $2 billion available for future buybacks.
• Neutral Sentiment: Brand performance was mixed. Crocs Brand revenue increased 4.3% to about $1.0 billion, but HEYDUDE revenue declined 5.7% to $179 million, highlighting ongoing weakness in the secondary brand.
• Negative Sentiment: Third-quarter guidance missed expectations. Crocs forecast adjusted EPS of $3.20-$3.30 and revenue near $996 million, below Wall Street expectations of roughly $3.53-$3.55 in EPS and $1.0 billion in revenue. Tariff pressures and continued HEYDUDE weakness further weighed on the near-term outlook. Crocs Shares Slide as Weak Outlook Draws Focus From Earnings Beat

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the stock. Bank of America increased their target price on shares of Crocs from $145.00 to $160.00 and gave the company a “buy” rating in a research report on Thursday, July 23rd. Wells Fargo & Company assumed coverage on Crocs in a report on Monday, June 8th. They set a “buy” rating on the stock. Williams Trading set a $150.00 target price on Crocs in a report on Tuesday, June 9th. Wall Street Zen raised Crocs from a “hold” rating to a “buy” rating in a research report on Saturday, April 11th. Finally, The Goldman Sachs Group lowered Crocs from a “sell” rating to a “neutral” rating in a research report on Monday, June 8th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $128.00.

Insider Activity at Crocs

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

Hedge Funds Weigh In On Crocs

Several institutional investors have recently added to or reduced their stakes in CROX. AQR Capital Management LLC raised its stake in Crocs by 399.0% during the 3rd quarter. AQR Capital Management LLC now owns 1,266,799 shares of the textile maker’s stock valued at $105,841,000 after acquiring an additional 1,012,943 shares during the last quarter. Fuller & Thaler Asset Management Inc. grew its stake in shares of Crocs by 78.7% in the 4th 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 during the last quarter. Incision Capital Management LP acquired a new position in shares of Crocs in the fourth quarter valued at approximately $27,794,000. Patient Capital Management LLC increased its holdings in shares of Crocs by 28.9% in the fourth quarter. Patient Capital Management LLC now owns 758,797 shares of the textile maker’s stock valued at $64,892,000 after purchasing an additional 170,003 shares during the period. Finally, Two Sigma Investments LP raised its stake in shares of Crocs by 1,171.9% during the third quarter. Two Sigma Investments LP now owns 162,040 shares of the textile maker’s stock worth $13,538,000 after purchasing an additional 149,300 shares during the last quarter. Institutional investors and hedge funds own 93.44% of the company’s stock.

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.