Crocs raises full-year outlook
Crocs delivered stronger-than-expected second-quarter results, driven by solid direct-to-consumer growth and momentum in its core brand, leading the company to raise its full-year 2026 outlook
“We are pleased to have delivered a stronger-than-expected second quarter, highlighted by record enterprise revenue, including the Crocs Brand surpassing 1 billion US dollars in quarterly revenue for the first time ever. Our results reflect broad consumer demand across both brands, healthy direct-to-consumer growth, and strong consumer response to new product innovation. Based on our strong first half performance, we are again raising our full-year top- and bottom-line guidance”, said Andrew Rees, Chief Executive Officer.
Second-Quarter Results
In the second quarter of the 2026 financial year, Crocs reported a consolidated revenue of 1.18 billion US dollars. This represents an increase of 2.6% (or 2.0% on a constant currency basis), compared to the same period of last year.During this period, DTC revenue increased by 12.0% (or 11.3% on a constant currency basis), while wholesale revenue fell by 7.2% (or 7.6% on a constant currency basis).
The Crocs brand generated revenue of 1.0 billion US dollars in the second quarter, an increase of 4.3% (or 3.7% on a constant currency basis) compared to the same quarter in 2025. Growth was flat at 0.4% in North America, reaching 459 million US dollars, while international revenue increased by 7.8% (or 6.6% on a constant currency basis), reaching 542 million US dollars.
Meanwhile, revenue from the Heydude brand declined by 5.7% year-on-year (or 5.8% on a constant currency basis) in the second quarter, amounting to 179 million US dollars.
The company’s gross margin shrank from 61.7% in the second quarter of 2025 to 59.4% in the current quarter. Meanwhile, the adjusted gross margin fell by 170 basis points, dropping from 61.7% to 60.0%.
Crocs reported a second-quarter operating income of 286 million US dollars, compared with an operating loss of 428 million US dollars in the same period last year, resulting in an operating margin of 24.2%, compared with a loss of 37.2%.
However, the loss in the prior year was mainly driven by non-cash Heydude asset impairment charges, which makes the reported comparison less meaningful. On an adjusted basis, operating income declined by 4.5% to 296 million US dollars from 309 million, with the adjusted operating margin narrowing from 26.9% to 25.1%.
Meanwhile, the company’s adjusted diluted earnings per share increased by 7.6% to 4.55 US dollars, despite reported diluted earnings per share improving sharply to 4.13 US dollars from a loss of 8.82 US dollars, which was also affected by impairment charges in the previous year.
Full-Year Outlook
For the full year of 2026, Crocs expects revenue to increase by between 1 and 2% compared to the full year of 2025. This is an improvement on our previous guidance of a decrease of between 1 and 1%. Adjusted diluted earnings per share are expected to be in the range of 13.70 to 14.00 US dollars, up from our previous guidance range of 13.20 to 13.75 US dollars.Image Credits: hypebae.com
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