Crocs (NASDAQ:CROX) Issues Earnings Results, Beats Estimates By $0.20 EPS

Crocs (NASDAQ:CROX) issued its quarterly earnings data on Thursday. The textile maker reported $4.55 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.35 by $0.20, FiscalAI reports. Crocs had a net margin of 14.64% and a return on equity of 47.75%. The business had revenue of $1.18 billion during the quarter, compared to analyst estimates of $1.15 billion. During the same quarter last year, the business earned ($8.82) EPS. The firm’s quarterly revenue was up 2.6% on a year-over-year basis. Crocs updated its FY 2026 guidance to 13.700-14.000 EPS and its Q3 2026 guidance to 3.200-3.300 EPS.

Here are the key takeaways from Crocs’ conference call:

• Record second-quarter revenue reached $1.2 billion, up 2% year over year, with the Crocs brand exceeding $1 billion in quarterly sales for the first time and growing 4%.
• Crocs’ international revenue rose 7%, led by double-digit growth in China, India, and Japan, while North America returned to slight growth; management highlighted strong momentum in sandals, diversified clog franchises, ballet flats, and direct-to-consumer channels.
• HEYDUDE revenue declined 6% to $179 million but exceeded expectations, with direct-to-consumer sales up 7% and management expressing confidence that the brand will return to growth in the second half of 2026.
• Full-year guidance was raised to 1%-2% enterprise revenue growth, Crocs brand growth of 2%-3%, HEYDUDE revenue down 2%-4%, and adjusted EPS of $13.70-$14.00, up from the prior $13.20-$13.75 range.
• Tariffs reduced second-quarter adjusted gross margin by 160 basis points and enterprise margin fell 170 basis points to 60%; although cost savings and pricing are expected to offset some pressure, the outlook still assumes additional tariff-related uncertainty.
• The board authorized an additional $1.5 billion share-repurchase program, bringing total available authorization to approximately $2 billion; the company also repurchased $251 million of stock and paid down $31 million of debt during the quarter.

Crocs Stock Up 3.5%

Shares of Crocs stock opened at $128.01 on Friday. The stock’s 50-day moving average is $125.85 and its 200 day moving average is $103.36. Crocs has a one year low of $73.21 and a one year high of $140.42. The firm has a market cap of $6.36 billion, a price-to-earnings ratio of 11.06, a PEG ratio of 1.28 and a beta of 1.55. The company has a debt-to-equity ratio of 0.94, a current ratio of 1.49 and a quick ratio of 1.04.

Crocs News Summary

Here are the key news stories impacting Crocs this week:

• Positive Sentiment: Second-quarter results exceeded expectations. Crocs reported adjusted earnings of $4.55 per share versus the $4.35 consensus estimate, while revenue reached a record $1.18 billion, above expectations of approximately $1.15 billion and up 2.6% year over year. The Crocs Brand surpassed $1 billion in quarterly revenue for the first time. Crocs Second-Quarter Results
• Positive Sentiment: Full-year 2026 guidance was raised. Crocs increased adjusted EPS guidance to $13.70-$14.00, above the prior consensus estimate of $13.67, while maintaining revenue expectations of roughly $4.1 billion. Management also authorized an additional $1.5 billion for share repurchases, leaving approximately $2 billion available for buybacks. Crocs Q2 Earnings Beat
• Positive Sentiment: Analysts remain constructive. Monness Crespi & Hardt raised its price target from $130 to $160 and assigned a Buy rating. Bank of America also reaffirmed its Buy rating and $160 target, citing brand momentum and potential margin upside. Bank of America Crocs Rating
• Neutral Sentiment: Growth was uneven across the portfolio. Direct-to-consumer and international demand helped results, but HEYDUDE revenue declined 5.7% to $179 million, highlighting continued challenges outside the core Crocs Brand.
• Negative Sentiment: Third-quarter guidance disappointed investors. Crocs projected adjusted EPS of $3.20-$3.30 and revenue of about $996 million, below Wall Street expectations of roughly $3.53-$3.55 in EPS and $1 billion in revenue. Tariff pressure and HEYDUDE weakness are expected to weigh on near-term profitability, overshadowing the quarterly beat and causing an initial selloff. Crocs Third-Quarter Guidance

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on CROX shares. Bank of America raised their price target on shares of Crocs from $145.00 to $160.00 and gave the company a “buy” rating in a research note on Thursday, July 23rd. Piper Sandler restated an “overweight” rating on shares of Crocs in a report on Friday. Monness Crespi & Hardt raised their target price on Crocs from $130.00 to $160.00 and gave the stock a “buy” rating in a research report on Friday. Wedbush initiated coverage on Crocs in a report on Monday, June 8th. They set an “outperform” rating on the stock. Finally, Needham & Company LLC upped their price target on Crocs from $132.00 to $150.00 and gave the company a “buy” rating in a research report on Friday, July 24th. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, six have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $135.09.

Insiders Place Their Bets

In other Crocs news, CEO Andrew Rees sold 32,688 shares of Crocs stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $118.09, for a total value of $3,860,125.92. Following the completion of the sale, the chief executive officer directly owned 743,293 shares in the company, valued at approximately $87,775,470.37. The trade was a 4.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 3.10% of the company’s stock.

Institutional Trading of Crocs

Several large investors have recently modified their holdings of CROX. Alberta Investment Management Corp bought a new position in Crocs during the fourth quarter worth $1,403,000. Strive Financial Group LLC acquired a new position in shares of Crocs during the fourth quarter valued at about $89,000. Delta Global Management LP bought a new position in shares of Crocs during the 4th quarter worth about $2,360,000. State of Tennessee Department of Treasury boosted its position in shares of Crocs by 24.5% during the 4th quarter. State of Tennessee Department of Treasury now owns 27,282 shares of the textile maker’s stock worth $2,290,000 after purchasing an additional 5,372 shares in the last quarter. Finally, Fuller & Thaler Asset Management Inc. grew its stake in shares of Crocs by 78.7% in the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 907,988 shares of the textile maker’s stock valued at $77,651,000 after buying an additional 399,964 shares during the period. Institutional investors and hedge funds own 93.44% of the company’s stock.

About Crocs

Crocs, Inc is a global footwear designer, developer and distributor best known for its lightweight, proprietary Croslite™ foam-clog construction. The company’s product portfolio encompasses a range of styles, including clogs, sandals, slides, boots and sneakers, all featuring the slip-resistant, odor-resistant and cushion-providing qualities of the Croslite material. Crocs distributes its products through an omnichannel network that includes e-commerce platforms, company-owned retail stores, authorized dealers and wholesale partners.

Founded in 2002 by Scott Seamans, Lyndon “Duke” Hanson and George Boedecker Jr., Crocs launched its first clog on the island of Vail, Colorado.