Crocs reported higher third-quarter revenue and operating income, with growth at both the Crocs and HEYDUDE brands. The company also raised its full-year 2026 outlook for a third time, lifting its revenue-growth forecast to about 3% and saying it had increased expectations on both the top and bottom lines.
HEYDUDE returned to year-over-year growth, while Crocs’ namesake brand posted a record third quarter. Crocs also repurchased about 2 million shares for $250 million and said it continued to pay down debt.
Key details
- Revenue rose 4.6% to $1.043 billion compared with the third quarter of 2025. Direct-to-consumer sales increased 6.9%, while wholesale revenue grew 1.8%.
- The Crocs brand grew 4%, reaching a record third-quarter revenue level. Growth was led by international markets, where revenue rose at a double-digit rate, and supported by the company’s product-diversification strategy.
- HEYDUDE revenue increased 6%, marking a return to growth for the brand.
- Reported gross margin was 66.2%, up from 58.5%. On an adjusted basis, gross margin rose to 60.3% from 58.5%.
- Operating income increased 40.6% to $292 million, with an operating margin of 28.0%, compared with 20.8% a year earlier. Adjusted operating income rose 11.7% to $232 million, and adjusted operating margin was 22.3%.
- Selling, general and administrative expenses rose 6.0% to $398 million and increased to 38.2% of revenue from 37.7%. Adjusted expenses were $397 million, or 38.1% of revenue.
- The company raised its full-year 2026 outlook for the third time. It now expects enterprise revenue growth of about 3%; it also said it raised its bottom-line outlook, but the announcement provided here does not give the revised bottom-line figure.
- Crocs bought back approximately 2.0 million shares for $250 million during the quarter and said it also reduced debt. The company cited strong free cash flow as supporting both shareholder returns and investment in its brands.
What changes for investors
The outlook increase reflects stronger expected performance across both brands, with HEYDUDE’s return to growth a notable change in its recent trajectory. The quarter also combined higher reported operating income and margin with substantial share repurchases and debt reduction.