Second Quarter 2026
Filed Jul 30, 2026Crocs, Inc. Reports Record Second Quarter 2026 Results; Raises Full-Year 2026 Outlook
Consolidated revenue increased 2.6%, the Crocs Brand exceeded $1.0 billion in quarterly revenue, adjusted diluted earnings per share increased 7.6%, and full-year revenue and adjusted diluted earnings per share guidance were raised. Gross margin and adjusted operating margin declined, while HEYDUDE Brand revenue and wholesale revenue decreased.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Consolidated revenuesGAAP | $1,179 million | – | an increase of 2.6%, or 2.0% on a constant currency basis |
| Direct-to-consumer revenuesGAAP | :null | – | grew 12.0%, or 11.3% on a constant currency basis |
| Wholesale revenuesGAAP | :null | – | decreased 7.2%, or 7.6% on a constant currency basis |
| Gross marginGAAP | 59.4% | – | – |
| Adjusted gross marginnon-GAAP | 60.0% | – | decreased 170 basis points |
| Selling, general, and administrative expensesGAAP | $415 million | – | decreased 63.5% |
| Selling, general, and administrative expenses as a percentage of revenuesGAAP | 35.2% | – | – |
| Adjusted selling, general, and administrative expensesnon-GAAP | $412 million | – | increased 3.1% |
| Adjusted selling, general, and administrative expenses as a percentage of revenuesnon-GAAP | 34.9% | – | – |
| Income from operationsGAAP | $286 million | – | – |
| Operating marginGAAP | 24.2% | – | – |
| Adjusted income from operationsnon-GAAP | $296 million | – | decreased 4.5% |
| Adjusted operating marginnon-GAAP | 25.1% | – | – |
| Net incomeGAAP | $204,887 | – | – |
| Diluted earnings per shareGAAP | $4.13 | – | – |
| Adjusted diluted earnings per sharenon-GAAP | $4.55 | – | increased 7.6% |
| Six Months Ended June 30 revenuesGAAP | $2,100,925 | – | – |
| Six Months Ended June 30 cost of salesGAAP | 877,273 | – | – |
| Six Months Ended June 30 gross profitGAAP | 1,223,652 | – | – |
| Six Months Ended June 30 selling, general and administrative expensesGAAP | 737,130 | – | – |
| Six Months Ended June 30 income (loss) from operationsGAAP | 486,522 | – | – |
| Six Months Ended June 30 income (loss) before income taxesGAAP | 442,767 | – | – |
| Six Months Ended June 30 income tax expenseGAAP | 100,324 | – | – |
| Six Months Ended June 30 net income (loss)GAAP | $342,443 | – | – |
| Six Months Ended June 30 diluted net income (loss) per common shareGAAP | $6.83 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Crocs BrandDTC revenues increased 12.9% to $559 million, while wholesale revenues decreased 5.0% to $441 million. | $1.0 billion | – | increased 4.3%, or 3.7% on a constant currency basis |
| HEYDUDE BrandDTC revenues increased 7.2% to $96 million, while wholesale revenues decreased 17.2% to $83 million. | $179 million | – | decreased 5.7%, or 5.8% on a constant currency basis |
| Crocs Brand North AmericaGeographic revenue within the Crocs Brand. | $459 million | – | increased 0.4%, or 0.4% on a constant currency basis |
| Crocs Brand InternationalGeographic revenue within the Crocs Brand. | $542 million | – | increased 7.8%, or 6.6% on a constant currency basis |
Full Year 2026 and Third Quarter 2026 outlook
- RevenueFull Year 2026: up approximately 1% to 2% compared to full year 2025, at currency rates as of July 27, 2026. Third Quarter 2026: approximately flat compared to the third quarter of 2025, at currency rates as of July 27, 2026.
- Tax rateFull Year 2026 GAAP effective tax rate: approximately 23%; adjusted effective tax rate: approximately 18%.
- NoteFull Year 2026 Crocs Brand revenue: up approximately 2% to 3% compared to full year 2025.
- NoteFull Year 2026 HEYDUDE Brand revenue: down approximately 4% to 2% compared to full year 2025.
- NoteFull Year 2026 non-GAAP adjustments: approximately $25 million primarily associated with cost reduction initiatives.
- NoteFull Year 2026 adjusted operating margin: expand modestly from 22.3%.
- NoteFull Year 2026 adjusted diluted earnings per share: $13.70 to $14.00.
- NoteFull Year 2026 capital expenditures: $70 million to $80 million.
- NoteThird Quarter 2026 Crocs Brand revenue: up approximately 1% compared to the third quarter of 2025.
- NoteThird Quarter 2026 HEYDUDE Brand revenue: down approximately 3% to flat compared to the third quarter of 2025.
- NoteThird Quarter 2026 adjusted operating margin: approximately 21.5%.
- NoteThird Quarter 2026 adjusted diluted earnings per share: $3.20 to $3.30.
- NoteAdjusted diluted earnings per share guidance does not assume any impact from potential future share repurchases.
Capital returns
- Repurchased approximately 2.3 million shares for $251 million at the average share price of $106.87.
- At quarter-end, approximately $496 million of share repurchase authorization remained available for future repurchases.
- On July 27, 2026, the Board approved a $1.5 billion increase to the share repurchase authorization, after which approximately $2.0 billion remained available for future common stock repurchases.
What drove it
- Broad consumer demand across both brands.
- Healthy direct-to-consumer growth.
- Strong consumer response to new product innovation.
- Crocs Brand DTC revenue increased 12.9% to $559 million.
- Crocs Brand international revenue increased 7.8% to $542 million.
- The year-ago SG&A comparison included noncash impairment charges related to the indefinite-lived HEYDUDE trademark of $430 million and HEYDUDE Brand reporting unit goodwill of $307 million.
Concerns
- Wholesale revenues decreased 7.2%, or 7.6% on a constant currency basis.
- HEYDUDE Brand revenues decreased 5.7% to $179 million, or 5.8% on a constant currency basis.
- HEYDUDE Brand wholesale revenues decreased 17.2% to $83 million, or 17.4% on a constant currency basis.
- Gross margin was 59.4% compared to 61.7%, and adjusted gross margin decreased 170 basis points to 60.0%.
- Adjusted income from operations decreased 4.5% from $309 million, and adjusted operating margin was 25.1% compared to 26.9%.
What to watch
- Whether the Crocs Brand delivers full-year revenue growth of approximately 2% to 3%.
- Whether HEYDUDE Brand revenue tracks the full-year outlook of down approximately 4% to 2%.
- Wholesale performance, following a 7.2% consolidated decrease and a 17.2% HEYDUDE Brand decrease.
- Progress toward modest full-year adjusted operating margin expansion from 22.3%.
- Execution against third-quarter adjusted operating margin guidance of approximately 21.5% and adjusted diluted earnings per share guidance of $3.20 to $3.30.
- The pace of share repurchases under approximately $2.0 billion of authorization available following the July 27, 2026 increase.
Balance sheet and cash flow
- Cash and cash equivalents were $170 million compared to $201 million.
- Inventories were $389 million compared to $405 million.
- Total borrowings were $1.31 billion compared to $1.38 billion.
- During the quarter, the company repaid $31 million of debt.
- Capital expenditures were $39 million compared to $32 million.
- June 30, 2026 cash and cash equivalents were $170,276, compared with $130,354 at December 31, 2025.
- June 30, 2026 accounts receivable were $430,297, compared with $278,191 at December 31, 2025.
- June 30, 2026 total assets were $4,356,279, compared with $4,174,750 at December 31, 2025.
Analysis
Crocs reported record enterprise revenue of $1,179 million, up 2.6%, with direct-to-consumer revenue growth of 12.0% offsetting a 7.2% decline in wholesale revenue. The Crocs Brand surpassed $1.0 billion in quarterly revenue for the first time, rising 4.3%. Brand performance was led by 12.9% Crocs Brand DTC growth and 7.8% growth in Crocs Brand international revenue.
HEYDUDE remained the principal pressure point. Its revenue decreased 5.7% to $179 million, as a 17.2% decline in wholesale revenue outweighed 7.2% DTC revenue growth. Consolidated wholesale also declined, while Crocs Brand North America revenue increased only 0.4%. These channel and geographic figures will remain important indicators of the breadth of demand.
Profitability comparisons were substantially affected by the prior-year impairment charges. GAAP income from operations was $286 million, compared with a loss from operations of $428 million, while GAAP diluted earnings per share were $4.13 compared with a diluted loss per share of $8.82. On an adjusted basis, income from operations decreased 4.5% to $296 million and adjusted operating margin was 25.1% compared with 26.9%. Gross margin was 59.4% compared with 61.7%, and adjusted gross margin decreased 170 basis points to 60.0%.
Capital allocation combined debt reduction and buybacks. The company repaid $31 million of debt and repurchased approximately 2.3 million shares for $251 million during the quarter. The Board subsequently increased the repurchase authorization by $1.5 billion, leaving approximately $2.0 billion available after the increase. Cash and cash equivalents were $170 million and total borrowings were $1.31 billion as of June 30, 2026.
The company raised its full-year outlook. Revenue is now expected to be up approximately 1% to 2%, versus prior guidance of down 1% to up 1%, and adjusted diluted earnings per share is now expected at $13.70 to $14.00, versus $13.20 to $13.75 previously. The third-quarter outlook calls for revenue to be approximately flat, adjusted operating margin of approximately 21.5%, and adjusted diluted earnings per share of $3.20 to $3.30.
Management, verbatim
We are pleased to have delivered a stronger-than-expected second quarter, highlighted by record enterprise revenue, including the Crocs Brand surpassing $1 billion 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.
Andrew Rees, Chief Executive Officer
Supported by our strong cash flow generation, we remain committed to balancing investment in our brands with disciplined capital allocation, including share repurchase and debt paydown. Reflecting our confidence in the business and future cash-flow generation, we have expanded our share repurchase authorization as we aim to further return meaningful value to shareholders.
Andrew Rees, Chief Executive Officer
Not in the filing
stated, not guessed- Operating cash flow was not provided in the supplied filing text.
- Free cash flow was not provided in the supplied filing text.
- A dividend amount or dividend declaration was not provided in the supplied filing text.
- Second-quarter adjusted net income was not provided in the supplied filing text.
- Second-quarter adjusted tax rate was not provided in the supplied filing text.
- Prior-quarter comparisons for reported operating metrics were not provided in the supplied filing text.
- Full-year 2026 GAAP EPS guidance was not provided in the supplied filing text.
- Third-quarter 2026 gross-margin, tax-rate, capital-expenditure, and GAAP EPS guidance were not provided in the supplied filing text.
- The supplied balance-sheet text is truncated after current liabilities and does not provide the remaining liabilities and stockholders' equity line items.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.