Crocs Raises 2026 Outlook a Third Time

The Tip Desk · November 1, 2026 · 3 min read

Third-quarter revenue reached $1.04 billion as HEYDUDE returned to growth and the company lifted full-year adjusted EPS to $14.45–$14.65.

Crocs, Inc. (CROX), the casual-footwear maker, raised its full-year 2026 outlook for a third consecutive time after third-quarter revenue of $1.04 billion, up 4.6% on a reported and constant-currency basis, and a return to growth at HEYDUDE.

The company now expects 2026 revenue to be up approximately 3% versus 2025, from prior guidance of up 1% to 2%. Crocs Brand full-year growth is now seen at approximately 4%, up from up 2% to 3%. HEYDUDE is now expected to be approximately flat, up from a prior range of down 4% to 2%. Adjusted diluted earnings per share guidance was lifted to $14.45 to $14.65 from $13.70 to $14.00. Adjusted operating margin is expected to expand modestly from 22.5%, up from expansion from 22.3%.

Chief Executive Officer Andrew Rees said the company is raising its full-year 2026 enterprise revenue growth outlook to approximately 3% after growth across brands, channels and geographies.

Consolidated revenue growth accelerated from the second quarter, when sales rose 2.6% (2.0% in constant currency). Direct-to-consumer revenue grew 6.9% on a reported and constant-currency basis. Wholesale revenue grew 1.8%, or 1.9% in constant currency, reversing a 7.2% decline in the prior quarter.

GAAP gross margin was 66.2% versus 58.5% a year earlier, including $64.1 million of non-recurring IEEPA tariff refunds tied to a February 2026 Supreme Court ruling. Adjusted gross margin rose 180 basis points to 60.3% from 58.5%, after a 170-basis-point decline to 60.0% in the second quarter.

GAAP income from operations was $292 million, up 40.6% from $208 million, for operating margin of 28.0% versus 20.8%. Adjusted income from operations was $232 million, up 11.7%, for adjusted operating margin of 22.3% versus 20.8%. Diluted earnings were $4.52 a share, up 67.4% from $2.70. Adjusted diluted earnings were $3.69 a share, up 26.4% from $2.92.

Crocs Brand revenue increased 4.4% on a reported and constant-currency basis to $873 million. Direct-to-consumer sales rose 8.2% to $510 million. Wholesale sales fell 0.5% to $362 million, or 0.4% in constant currency. North America revenue decreased 2.1% to $438 million. International revenue increased 11.8% to $434 million, or 11.7% in constant currency.

HEYDUDE revenue increased 6.1% to $170 million, or 6.2% in constant currency, after a 5.7% decline in the second quarter. Rees said HEYDUDE revenues grew 6%, marking a milestone as the company delivered on a commitment stated earlier in the year to return the brand to growth. HEYDUDE wholesale revenue increased 14.0% to $79 million. HEYDUDE direct-to-consumer revenue increased 0.1% to $91 million.

Selling, general and administrative expenses were $398 million, or 38.2% of revenue. Adjusted SG&A was $397 million, or 38.1% of revenue.

The company repurchased approximately 2.0 million shares for $250.0 million at an average price of $123.32, leaving about $1.7 billion of authorization, and repaid $21 million of debt. Cash and cash equivalents were $163 million. Inventories were $413 million. Total borrowings were $1.29 billion. Capital expenditures were $54 million.

For the fourth quarter of 2026, Crocs expects revenue up approximately 7% to 9% versus the fourth quarter of 2025, with Crocs Brand up approximately 6% to 8% and HEYDUDE up approximately 10% to 12%. Adjusted operating margin is expected at approximately 20.5% and adjusted diluted earnings per share in the range of $3.25 to $3.45. Full-year capital expenditures are expected at $70 million to $80 million. The company also expects a non-GAAP net benefit of $40 million primarily associated with tariff refunds and cost-reduction initiatives.