#United States #Broomfield #footwear #Crocs #HEYDUDE

Crocs, Inc. Reports Fourth Quarter and Full-Year 2025 Results

Crocs, Inc., the renowned leader in casual footwear, recently announced its financial outcomes for the fourth quarter and the entire year of 2025. The company has shown resilience by surpassing revenue expectations, with a notable total exceeding $4 billion — a testament to the thriving global appeal of both the Crocs and HEYDUDE brands.

Andrew Rees, the CEO, expressed optimism, stating, "We ended 2025 on a strong note with a better-than-expected Holiday quarter. For the year, revenue exceeded $4 billion, led by low-double digit international growth for the Crocs Brand."

Financial Summary

The consolidated revenues for the fourth quarter were reported at $958 million, which reflects a decrease of 3.2% compared to the same quarter in the previous year. However, direct-to-consumer revenues showed positive growth of 4.7%, indicating a shift towards online shopping trends by consumers. Wholesale revenues, in contrast, saw a steeper decline of 14.5%.

Key Financial Metrics

• - Gross Margin: The gross margin decreased to 54.7% from 57.9% year-over-year.
• - Operating Income: Crocs registered an operating income of $146 million, a drop of 26.8%, leading to an operating margin of 15.3%. Adjusted income from operations was slightly better at $161 million.
• - Earnings Per Share (EPS): The diluted earnings per share significantly fell to $2.03, down 68.1% from $6.36. The adjusted EPS also saw a decline but lesser, resting at $2.29, a 9.1% reduction.

Strategic Actions and Outlook

Looking ahead, Crocs has a comprehensive strategy in play for 2026. They are targeting a revenue range that could remain flat or see slight growth, reflecting high hopes for brand performance amid changing market conditions. The company plans to focus on cost savings, aiming for about $100 million in operational efficiencies, which will enhance flexibility in reinvesting in brand development and consumer engagement.

Mr. Rees noted, "We enter 2026 with greater confidence around our growth engines which are diversified across channels, geographies, brands, and product categories."

Brand Performance Highlight

The Crocs Brand revenue experienced a slight increase of 0.8%, driven mainly by direct sales, while HEYDUDE faced challenges with a revenue decrease of 16.9%. Notably, direct-to-consumer sales for both brands continue to show resilience, underscoring the shift in consumer purchasing behaviors.

In 2026, Crocs aims to boost its earnings per share to a range between $12.88 to $13.35, with a focus on leveraging its innovativeness in product development and brand outreach initiatives. These plans will be complemented by ongoing share repurchases, maintaining strong shareholder returns as seen in 2025, when Crocs repurchased about 6.5 million shares.

Conclusion

In conclusion, Crocs, Inc. not only weathered the uncertainties presented in 2025 but is also poised for potential growth and strategic development in 2026. The financial results serve as a foundation for solidifying brand trust and engagement worldwide. As the world continues to adopt casual footwear trends, Crocs is well-positioned to thrive in the evolving landscape.

For those interested, the conference call discussing these results and plans is scheduled for February 12, 2026, providing further insights into Crocs, Inc.'s trajectory and strategic objectives for the near future.