“We reported a solid second quarter with both our Crocs and Heydude brands contributing to our performance, while delivering the highest ever gross profit quarter in company history”, stated Andrew Rees, Chief Executive Officer of Crocs.

Second Quarter Results

In the second quarter of the 2025 financial year, the company’s consolidated revenue totalled 1.15 billion US dollars, reflecting a 3.4% increase (or a 2.7% increase on a constant currency basis), as compared to the same period of the last year. This performance included a 4.0% increase in DTC revenue (or 3.4% on a constant currency basis) and a 2.8% increase in wholesale revenue (or 2.0% on a constant currency basis).

During this period, the Crocs brand accounted for 960 million US dollars of the total revenue, which was a rise of 5.0% (or 4.2% on a constant currency basis). The Heydude brand accounted for 190 million US dollars, which was a fall of 3.9% (or 4.2% on a constant currency basis), on a comparable basis to the second quarter of 2024.

In the second quarter of this year, Crocs achieved a 30-basis-point improvement in gross margin, growing from 61.4% in the same period last year to 61.7%.

Crocs reported a quarterly loss as substantial impairment charges related to its acquisition of Heydude overshadowed an otherwise solid performance.

The company reported an operating loss of 428 million US dollars, as compared with operating income of 326 million US dollars in the same prior-year period. Selling, general and administrative expenses rose to 1.1 billion US dollars, mainly due to 737 million US dollars in non-cash write-downs of the Heydude trademark and goodwill.

These charges also caused Crocs to report a second quarter diluted loss per share of 8.82 US dollars, as compared to earnings of 3.77 US dollars in the same quarter of the previous year. However, adjusted operating income totalled 309 million US dollars, a 5.0% year-on-year decrease, resulting in an adjusted operating margin of 26.9% as compared to 29.3% 

Ultimately, the company’s adjusted diluted earnings per share increased by 5.5% to 4.23 US dollars.

During the quarter, Crocs repaid 105 million US dollars of debt and repurchased 1.3 million shares at an average price of 102.24 US dollars, totalling 133 million US dollars.

Third Quarter Outlook

“While we are pleased by this performance, the current operating environment is uncertain and challenging to predict”, continued Rees. “Against this, we have chosen to focus on managing expenses including the 50 million US dollars in cost savings we have already implemented, reducing our inventory receipts, and pulling back on promotional activity to protect brand health in the marketplace. Although these actions will impact the topline of our business in the short term, they will position our business to win, drive margin dollars, and support continued cash flow generation longer term”.

Therefore, Crocs expects its revenue in the third quarter to decline between 11% and 9% year-on-year at currency-adjusted rates, with an adjusted operating margin in the third quarter of approximately 18% to 19%. This includes an anticipated negative impact of around 170 basis points from announced and pending tariffs.

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