Crocs Q3 2026: EPS Beats Expectations as HEYDUDE Returns to Growth
As seen on the 24/7 Wall St. homepage on October 29, 2026.
Management raised full-year adjusted EPS guidance to $14.45 to $14.65 after HEYDUDE returned to growth. International Crocs demand is carrying the quarter as North America softens.
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Crocs posted adjusted diluted EPS of $3.69 for the third quarter of 2026, beating expectations and marking a sixth straight quarter of consensus EPS beats. Revenue topped forecasts on international demand for the Crocs brand and a recovery at HEYDUDE.
International is now the engine of the Crocs brand, with international direct-to-consumer sales up 24.1%, more than covering a decline in North America. The growth runway is increasingly outside the home market, where wholesale slipped in the quarter.
HEYDUDE returned to growth with a 6.1% revenue gain, fulfilling a commitment CEO Andrew Rees had made to investors earlier in the year. The recovery is wholesale-led for now, with DTC essentially flat. Management guided the brand up 10% to 12% in Q4 2026.
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Margins improved across the board on an adjusted basis, with adjusted gross margin expanding 180 basis points to 60.3% and operating margin also higher. A lower share count from buybacks in the quarter further lifted per-share results.
Management raised full-year 2026 adjusted EPS guidance to $14.45 to $14.65 and lifted the full-year revenue growth outlook to approximately 3%. Fourth-quarter revenue is guided up 7% to 9%, pointing to accelerating momentum in both brands into year-end.
Mentioned: CROX