Key Highlights

  • Adjusted EPS of USD 3.69 rose 26% and topped the consensus estimate of USD 3.31; GAAP EPS was USD 4.52.
  • Revenue of USD 1.04 billion rose about 5% year over year, above the consensus estimate of USD 1.00 billion.
  • HEYDUDE Revenue grew 6% to USD 170 million, ending a run of declines; Crocs Brand revenue rose 4%.
  • Adjusted Operating Margin widened 150 basis points to 22.3%; about 2 million shares were repurchased for USD 250 million.

Crocs, Inc. (NASDAQ:CROX) reported third quarter 2026 adjusted Diluted Earnings per Share of USD 3.69, up 26% from a year earlier and above a consensus estimate of USD 3.31. The company had guided to USD 3.20 to USD 3.30. GAAP diluted EPS was USD 4.52 compared with USD 2.70, on Net Income of USD 216.8 million versus USD 145.8 million. Revenues were USD 1,042.6 million, up from USD 996.3 million and above a consensus estimate of USD 1.00 billion.

Margins Widen on Lower Tariffs and Cost Savings

Adjusted gross margin was 60.3%, up 180 basis points, helped by cost savings in Supply chain and distribution and by lower tariffs, partly offset by product mix from the Diversification strategy. The adjusted figure excludes USD 64 million of Tariff refunds received in the quarter. GAAP Gross Profit was USD 689.7 million versus USD 583.0 million. Adjusted SG&A was USD 397 million, up 6% on direct-to-consumer investments, and adjusted operating margin reached 22.3%. GAAP income from operations rose to USD 291.9 million from USD 207.7 million.

By brand, Crocs revenue of USD 873 million included international growth of about 12%, with international direct-to-consumer up 24%, while North America declined about 2%. Chief Executive Officer Andrew Rees said HEYDUDE grew wholesale revenue 14% and lifted gross margin 350 basis points while cutting SG&A 9%. The chief financial officer said the shift of some North America direct-to-consumer Volume to wholesale cost 270 basis points of growth in that channel during the quarter.

Raised Full Year Guidance and Fourth Quarter Targets

The company raised 2026 revenue growth guidance to about 3% from a range of 1% to 2%. Crocs brand growth is now about 4% and HEYDUDE is projected roughly flat, improved from a prior decline of 2% to 4%. Adjusted diluted EPS guidance moved to USD 14.45 to USD 14.65 from USD 13.70 to USD 14.00, excluding any effect from future repurchases.

For the fourth quarter, the company guides to revenue growth of 7% to 9%, with Crocs brand up 6% to 8% and HEYDUDE up 10% to 12%. Adjusted operating margin is guided to about 20.5% and adjusted diluted EPS to USD 3.25 to USD 3.45. Management said the wholesale shift would weigh on North America direct-to-consumer growth by roughly 700 to 800 basis points over the next several quarters until it laps in the third quarter of next year.

Items to Follow Through Year End

Several figures stand out. The fourth quarter EPS range of USD 3.25 to USD 3.45 and the 20.5% adjusted operating margin guide provide near term markers. The 700 to 800 basis point direct-to-consumer headwind in North America sizes the channel shift effect. HEYDUDE wholesale, up 14%, and gross margin of 45.8% show whether the brand holds its turnaround. On the balance sheet, cash stood at about USD 163 million, inventory at USD 413 million, and net Leverage at the low end of the 1.0x to 1.5x target range.