Crocs reported higher third-quarter revenue, stronger operating margins and a return to growth at its HEYDUDE brand. The company also raised its 2026 outlook for the third time this year and repurchased $250 million of its shares during the quarter.
Key details
- Revenue rose 4.6% to $1.043 billion for the three months ended Sept. 30, compared with the same quarter a year earlier. Growth was the same on a constant-currency basis.
- Sales grew across channels. Direct-to-consumer revenue increased 6.9%, while wholesale revenue rose 1.8% (1.9% on a constant-currency basis).
- The Crocs brand had a record third quarter, with revenue up 4%. The company said double-digit international growth and continued expansion into product categories beyond its core offerings supported performance.
- HEYDUDE revenue increased 6%, returning the brand to growth after a period of weaker results.
- Reported operating income rose 40.6% to $292 million, and operating margin increased to 28.0% from 20.8% a year ago. On an adjusted basis, operating income grew 11.7% to $232 million, with an adjusted operating margin of 22.3%, up from 20.8%.
- Gross margin was 66.2%, compared with 58.5% a year earlier. Adjusted gross margin was 60.3%, up 1.8 percentage points from 58.5%. The company reported the two measures separately.
- Selling, general and administrative expenses increased 6.0% to $398 million and rose to 38.2% of revenue from 37.7%. Adjusted expenses were $397 million, or 38.1% of revenue.
- Crocs raised its full-year 2026 outlook for both revenue and earnings. It put expected enterprise revenue growth at approximately 3%, its third outlook increase for the year. The announcement did not give a revised earnings figure in the material provided.
- The company repurchased about 2.0 million shares for $250 million during the quarter. It also said it paid down debt, but did not specify the amount in the announcement.
The results show growth at both brands and across sales channels, alongside higher adjusted margins. The quarter’s $250 million in share repurchases returned capital to shareholders while Crocs also reduced debt.