Crocs lifts annual outlook as third-quarter revenues reach 1.04 billion dollars

US casual footwear group Crocs, Inc. (Crocs) reported a 4.6 percent increase in consolidated revenues for the third quarter of 2026, reaching 1.04 billion dollars on both a reported and constant currency basis. Growth was registered across brand portfolios and direct-to-consumer (DTC) channels, prompting management to raise full-year enterprise revenue guidance to approximately 3 percent.

Diluted earnings per share reached 4.52 dollars compared to 2.70 dollars in the prior-year period, while adjusted diluted earnings per share grew 26.4% to 3.69 dollars. Operating income rose 40.6 percent year-over-year (YoY) to 292 million dollars, yielding an operating margin of 28 percent.

Gross margin expanded to 66.2 percent from 58.5 percent in the third quarter of 2025. Adjusted gross margin increased by 1.80 percentage points to 60.3 percent, supported by supply chain efficiencies and pricing discipline.

Heydude returns to growth alongside international Crocs expansion

Revenues for the core Crocs brand climbed 4.4 percent on a reported and constant currency basis to 873 million dollars. Performance was driven by an 11.8 percent expansion in international revenues to 434 million dollars, whereas North American revenue contracted 2.1 percent to 438 million dollars. Crocs DTC revenue increased 8.2 percent to 510 million dollars, mitigating wholesale revenue contraction of 0.5 percent to 362 million dollars.

Meanwhile, Italian-founded casual footwear label Heydude recorded revenue growth of 6.1 percent to 170 million dollars, led by a 14 percent increase in wholesale receipts to 79 million dollars.

Upward revisions for full-year 2026 targets

Crocs chief executive officer Andrew Rees highlighted operational progress across key segments: “The Crocs brand delivered a record third quarter with revenues up 4%, led by double-digit international revenue growth and continued momentum across our product diversification strategy. Heydude revenues grew 6%, marking an important milestone as we delivered on our commitment stated earlier in the year to return the brand to growth.”

Rees confirmed that balance-sheet resilience continues to facilitate capital deployment toward both shareholder returns and brand investment. Crocs retained 1.70 billion dollars in remaining share repurchase authorisation at the close of the quarter.

For the full year of 2026, the company expects enterprise revenue to advance by approximately 3 percent, revised upward from prior guidance of 1 percent to 2 percent. Crocs brand is expected to be up approximately 4 percent, up from our previous guidance of up 2 percent to 3 percent and Heydude brand to be approximately flat compared to full year 2025, up from our previous guidance of down 4 percent to 2 percent.

Fourth-quarter revenue expansion is projected between 7 percent and 9 percent, supported by anticipated Crocs brand to be up approximately 6 percent to 8 percent and Heydude revenue increase of 10 percent to 12 percent and adjusted diluted earnings per share between 3.25 dollars and 3.45 dollars.