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

Crocs (NASDAQ:CROX) posted its earnings results on Thursday. The textile maker reported $4.55 earnings per share 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 firm had revenue of $1.18 billion during the quarter, compared to the consensus estimate of $1.15 billion. During the same quarter last year, the firm earned ($8.82) EPS. The firm’s revenue for the quarter 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 Down 7.4%

CROX stock traded down $9.86 during mid-day trading on Thursday, reaching $123.66. The company had a trading volume of 3,007,030 shares, 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 company has a market capitalization 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. The firm has a fifty day simple moving average of $125.21 and a 200 day simple moving average of $102.93. Crocs has a fifty-two week low of $73.21 and a fifty-two week high of $140.42.

Analyst Upgrades and Downgrades

CROX has been the subject of a number of research reports. Stifel Nicolaus lifted their price objective on Crocs from $105.00 to $125.00 and gave the company a “hold” rating in a research note on Monday, June 15th. Williams Trading set a $150.00 target price on Crocs in a research report on Tuesday, June 9th. Deutsche Bank Aktiengesellschaft assumed coverage on shares of Crocs in a research report on Monday, June 8th. They set a “buy” rating on the stock. Seaport Research Partners lifted their price objective on shares of Crocs from $135.00 to $160.00 and gave the company a “buy” rating in a report on Monday, July 20th. Finally, Wall Street Zen raised shares of Crocs from a “hold” rating to a “buy” rating in a research note on Saturday, April 11th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $128.00.

Insider Activity

In other news, CEO Andrew Rees sold 32,688 shares of the business’s stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $118.09, for a total transaction of $3,860,125.92. Following the completion of the transaction, the chief executive officer directly owned 743,293 shares of the company’s stock, valued at approximately $87,775,470.37. The trade was a 4.21% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 3.10% of the company’s stock.

Institutional Trading of Crocs

Several hedge funds have recently added to or reduced their stakes in CROX. NewEdge Advisors LLC grew its holdings in Crocs by 1.1% during the 2nd quarter. NewEdge Advisors LLC now owns 10,710 shares of the textile maker’s stock worth $1,085,000 after acquiring an additional 120 shares in the last quarter. L2 Asset Management LLC lifted its position in shares of Crocs by 5.4% during the 4th quarter. L2 Asset Management LLC now owns 3,319 shares of the textile maker’s stock worth $284,000 after purchasing an additional 169 shares during the last quarter. Parallel Advisors LLC lifted its position in shares of Crocs by 60.2% during the 3rd quarter. Parallel Advisors LLC now owns 495 shares of the textile maker’s stock worth $41,000 after purchasing an additional 186 shares during the last quarter. Kestra Investment Management LLC grew its stake in shares of Crocs by 7.2% during the second quarter. Kestra Investment Management LLC now owns 2,800 shares of the textile maker’s stock worth $284,000 after purchasing an additional 187 shares in the last quarter. Finally, Truvestments Capital LLC increased its holdings in Crocs by 10.5% in the fourth quarter. Truvestments Capital LLC now owns 3,135 shares of the textile maker’s stock valued at $268,000 after buying an additional 298 shares during the last quarter. Institutional investors and hedge funds own 93.44% of the company’s stock.

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

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.