Crocs tops Q3 profit estimates, raises 2026 forecast

Crocs, Inc. (CROX) said in a filing on Oct. 29 that third-quarter revenue rose 4.6% to $1,043 million and that it raised its full-year 2026 forecast.

Adjusted diluted earnings per share were $3.69, up 26.4% from $2.92 a year earlier. That topped the $3.37 consensus estimate compiled by Finnhub. Revenue also topped the $1.02 billion estimate.

Here's how the company did:

• Adjusted EPS: $3.69 vs. $2.92 a year earlier, according to Finnhub, which had $3.37 expected
• Revenue: $1,042.6 million vs. $996.3 million a year earlier, against a $1.02 billion estimate
• GAAP diluted EPS: $4.52 vs. $2.70 a year earlier

The company's GAAP results include a $64.1 million benefit from IEEPA tariff refunds tied to a February 20, 2026, U.S. Supreme Court ruling, which it called non-recurring. Excluding that item and other adjustments, gross margin was 60.3%, compared with 58.5% a year earlier.

Brand results

Crocs Brand revenue rose 4.4% to $873 million. Direct-to-consumer revenue for the brand grew 8.2% to $510 million, while international revenue rose 11.8% to $434 million.

HEYDUDE Brand revenue increased 6.1% to $170 million. The company said the brand returned to growth, with wholesale revenue up 14.0% to $79 million.

2026 guidance

The company now expects full-year 2026 revenue to be up approximately 3% from 2025. That is above its previous guidance of up 1% to 2%, which was given at currency rates as of October 26, 2026.

It raised its adjusted diluted EPS forecast to $14.45 to $14.65, from its previous range of $13.70 to $14.00. The company said the guidance does not assume any impact from potential future share repurchases.

For the fourth quarter, the company expects revenue to be up approximately 7% to 9% from a year earlier, and adjusted diluted EPS of $3.25 to $3.45.

Share repurchases and debt

The company repurchased approximately 2.0 million shares for $250.0 million during the quarter, at an average price of $123.32. About $1.7 billion of repurchase authorization remained at quarter-end.

It also repaid $21 million of debt. Total borrowings were $1.29 billion at September 30, compared with $1.32 billion a year earlier.

CEO Andrew Rees said in the release, "The strength of our business model and exceptional free-cash-flow generation provides us with significant flexibility to invest behind our brands while returning meaningful capital to shareholders."

The company's brands include Crocs and HEYDUDE, and its products are sold in more than 85 countries through wholesale and direct-to-consumer channels.