Crocs Raises 2026 Outlook After Record Quarterly Revenue
LW Desk
Global footwear company Crocs Inc. has raised its full year 2026 financial guidance after reporting stronger than expected second quarter results, driven by record enterprise revenue, continued growth in direct to consumer (DTC) sales, and solid demand for its Crocs brand.
Commenting on the performance, Chief Executive Officer Andrew Rees said the company achieved its highest ever quarterly enterprise revenue, with the Crocs brand surpassing US $1 billion in quarterly sales for the first time. He noted that consumer demand remained healthy across both brands, supported by successful product innovation and strong DTC momentum.
During the second quarter, Crocs posted consolidated revenue of US $1.18 billion, representing a 2.6% year on year increase. Direct to consumer sales rose 12%, reflecting continued strength in online and retail channels, while wholesale revenue declined 7.2%.
The flagship Crocs brand generated US $1.0 billion in revenue, up 4.3% from the same period last year. Sales in North America remained broadly stable at US $459 million, while international markets delivered stronger growth, with revenue rising 7.8% to US $542 million. In contrast, the Heydude brand recorded a 5.7% decline in quarterly revenue to US $179 million.
The company's gross margin narrowed to 59.4%, compared with 61.7% a year earlier, while adjusted operating income declined modestly to US $296 million. However, reported operating income improved significantly to US $286 million, largely because the previous year's results were affected by substantial non-cash impairment charges related to the Heydude brand.
Crocs also reported adjusted diluted earnings per share of US $4.55, an increase of 7.6% over the previous year.
Reflecting confidence in its business performance, the company has revised its full-year 2026 outlook. Crocs now expects annual revenue to grow by 1–2%, improving on its earlier forecast of a slight decline. It has also increased its adjusted diluted earnings per share guidance to US $13.70–14.00, up from the previous range of US $13.20–13.75.
