“Our third-quarter performance was driven by disciplined execution against our brand strategies, as well as greater product and go-to-market innovation. The strength of our profitability and cash flow enabled us to repurchase 2.4 million of our outstanding shares and pay down 63 million US dollars of debt during the quarter, both fundamental levers of our value creation model. While our results came in ahead of expectations, we believe both of our brands have greater potential, and are working to re-gain momentum in the marketplace”, commented Andrew Rees, Chief Executive Officer.

Third Quarter Results

In the third quarter of the 2025 financial year, the company’s consolidated revenue totalled 996 million US dollars. This reflects a 6.2% decrease (or 6.8% on a constant currency basis), as compared to the same period in the previous financial year. Of the total, DTC revenue grew by 1.6% (or 0.9% on a constant currency basis), while wholesale revenue decreased by 14.7% (or 15.1% on a constant currency basis).

On a comparable basis to the third quarter of 2024, the Crocs brand revenue amounted to 836 million US dollars, which is a 2.5% decrease (or a 3.2% decrease on a constant currency basis). While the brand’s international revenue increased by 5.8% (4.2% on a constant currency basis) to 389 million US dollars in the quarter, revenue in North America decreased by 8.8% to 448 million US dollars.

Meanwhile, the Heydude brand recorded third quarter revenue of 160 million US dollars, reflecting a decrease of 21.6% (or 21.7% on a constant currency basis), as compared to the same period of the previous year. 

In the third quarter, Crocs’ profitability declined as rising expenses and lower margins impacted results. 

The company’s gross margin fell by 1.1 percentage points to 58.5%, down from 59.6% a year earlier. Selling, general and administrative expenses increased by 3.3% to 375 million US dollars, representing 37.7% of revenue (compared to 34.2% in last year’s prior quarter). Operating income fell by 23% to 208 million US dollars, reducing the operating margin from 25.4% to 20.8%.

In the three months to the 30^th of September, Crocs’ diluted earnings per share decreased by 19.6% year-on-year to 2.70 US dollars, while adjusted diluted earnings per share fell by 18.9% year-on-year to 2.92 US dollars.

“As we look forward, in addition to the 50 million US dollars of gross cost savings in 2025, we have identified an incremental 100 million US dollars of gross cost savings and are committed to driving operating leverage in 2026”, emphasising the company’s commitment to managing costs in a challenging retail environment.