Crocs Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.54%.
Did CROX Beat Earnings? Q4 2025 Results
Crocs closed Q4 2025 with a sharper-than-expected earnings beat, delivering adjusted diluted EPS of $2.29 against a consensus estimate of $1.76, a 30.11% positive surprise, even as revenue slipped 3.3% year-over-year to $957.64 million, which still cleared the $917.12 million consensus by 4.42%. The headline story remains HEYDUDE's persistent struggles, with the brand's Q4 revenues tumbling 16.9% to $189.26 million on a 40.5% wholesale collapse, while the core Crocs Brand showed resilience through 14.1% international growth. Adjusted gross margin compressed 320 basis points to 54.7% in the quarter, reflecting channel mix and promotional pressures that have weighed on the footwear sector broadly, a dynamic that has also tested <a href="https://247wallst.com/investing/2026/01/30/deckers-earnings-scorecard-nearly-straight-as-send-stock-soaring-15/">rival footwear brands</a> in recent quarters. Management is targeting $100 million in cost savings heading into 2026 to support margin recovery, and guided full-year adjusted EPS of $12.88 to $13.35 despite expecting revenues to be roughly flat to slightly down versus 2025, with HEYDUDE projected to decline a further 9% to 7%.
- Crocs Brand international revenue growth of 14.1% in Q4, or 11.0% constant currency
- DTC channel revenue growth of 4.7% offsetting wholesale decline of 14.5%
- Crocs Brand DTC revenue growth of 6.1% in Q4
- HEYDUDE wholesale channel decline of 40.5% dragged overall results
- Adjusted gross margin compression of 320 basis points to 54.7% in Q4
“We ended 2025 on a strong note with a better-than-expected Holiday quarter. For the year, revenue exceeded $4 billion, led by low-double digit international growth for the Crocs Brand. At the same time, we accelerated our strategic actions to strengthen the long-term health of both the Crocs and HEYDUDE brands. Our powerful value creation model drove operating cash flow of approximately $700 million which enabled us to return shareholder value as we repurchased approximately 10% of our shares outstanding, and paid down $128 million of debt.”
Crocs CEO, on the earnings call
Forward Guidance & Outlook
For Q1 2026, the company expects revenues to be down approximately 5.5% to 3.5% versus Q1 2025, with Crocs Brand down low-single-digits and HEYDUDE Brand down approximately 18% to 15%. Q1 adjusted operating margin is expected at approximately 21.5%, and adjusted diluted EPS is guided at $2.67 to $2.77. For full-year 2026, revenues are expected to be down approximately 1% to up slightly versus 2025, with Crocs Brand flat to up 2% and HEYDUDE down approximately 9% to 7%. Adjusted operating margin is expected to expand modestly from 22.3%. Adjusted diluted EPS is guided at $12.88 to $13.35 (excluding potential share repurchases). Non-GAAP adjustments are expected to be approximately $25 million, primarily for supply chain optimization and cost savings. GAAP effective tax rate is expected at approximately 23% and adjusted effective tax rate at approximately 18%. Capital expenditures are expected at $70 million to $80 million.
CROX YoY Financials
CROX Revenue by Segment
CROX Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.