Companies

Crocs posts soft first quarter but raises full-year outlook

May 1, 2026 United States

The US-based company reported a slight drop in revenue and earnings in the first quarter. However, stronger direct-to-consumer sales supported a modest increase in full-year guidance

“We are pleased to have started the year with better-than-expected results, fueled by broad consumer relevance for both of our brands and disciplined execution against our strategy. We delivered enterprise revenue of over 900 million US dollars including growth in our direct-to-consumer channels for both brands”, commented Andrew Rees, Chief Executive Officer.

First Quarter Results

In the first quarter of the 2026 financial year, the company’s revenue totalled 921 million US dollars, reflecting a 1.7% decrease (or 4.0% on a constant currency basis) compared to the same period in the previous financial year.

Crocs’ gross margin contracted to 56.8% from 57.8% in the same period a year ago, with adjusted gross margin down 90 basis points to 56.9%.

The company’s operating income decreased by 9.9% to 201 million US dollars compared to the first quarter of the 2025 financial year. The operating margin also fell to 21.8% from 23.8%. Adjusted operating income fell by 7.8% to 206 million US dollars, with the margin standing at 22.3%.

In the first quarter, Crocs reported diluted earnings per share of 2.71 US dollars and adjusted earnings per share of 2.99 US dollars. These figures represent respective declines of 4.2% and 0.3% compared to the first quarter of the previous financial year.

Brand Summary

The Crocs brand recorded modest revenue growth in the first quarter, with sales rising by 0.8% year-on-year to 767 million US dollars. However, this figure declined by 1.9% on a constant currency basis, indicating underlying weakness.

From a channel perspective, DTC revenue increased by 12.9% to reach 322 million US dollars (an increase of 10.6% in constant currency), while wholesale revenue fell by 6.5% to reach 446 million US dollars (a fall of 9.4% in constant currency).

By region, Crocs' brand revenue in North America declined by 6.1% to 346 million US dollars. Meanwhile, revenue from the international market grew by 7.2% to 421 million US dollars (a 2.3% increase in constant currency).

Meanwhile, Heydude’s first-quarter revenue fell by 12.3% to 154 million US dollars (a 13.2% drop in constant currency), reflecting continued weakness. Although direct-to-consumer sales increased by 8.6% to 71 million US dollars, this was outweighed by a sharp 24.7% drop in wholesale revenue to 83 million US dollars (a 26.0% decrease in constant currency).

Outlook

For the second quarter of 2026, the company expects a slight decline in revenue, with modest growth in the Crocs brand (up by 1to 3%) offset by continued weakness in Heydude (down by 12 to 14%). Adjusted earnings per share are projected to be between 4.15 and 4.35 US dollars.

For the full year, Crocs has slightly raised its outlook, now expecting revenue to range from a 1% decline to a 1% increase. The Crocs brand is expected to remain broadly flat or increase by up to 2%, while the Heydude brand is still expected to decline, albeit less sharply than previously forecast.

Full-year adjusted earnings per share are expected in the range of 13.20 to 13.75 US dollars, also up from the previous guidance range of 12.88 to 13.35 US dollars.

Image Credits: pausemag.co.uk

United States Companies Crocs Footwear Quarter Results Results