Crocs delivered a significant third quarter beat driven by the stabilization of the HEYDUDE brand and continued double-digit international momentum for the core Crocs brand. Following the results, management raised full-year 2026 guidance for the third consecutive time, now projecting enterprise revenue growth of approximately 3% and adjusted EPS significantly above previous ranges.
Key Highlights
- HEYDUDE brand revenue returned to growth, increasing 6.1% to $169.9 million, surpassing the estimated $158.5 million.
- Core Crocs brand revenue reached a record $873 million, supported by 11.8% growth in international markets which offset a 2.1% decline in North America.
- Adjusted gross margin expanded 180 basis points to 60.3%, aided by lower freight costs and favorable product mix.
- The company repurchased 2.0 million shares for $250 million during the quarter, with $1.7 billion remaining under the current authorization.