Crocs, Inc. Reports Strong Third Quarter 2026 Results; Raises Full-Year 2026 Outlook
BROOMFIELD, Colo., Oct. 29, 2026 /PRNewswire/ -- Crocs, Inc. (NASDAQ: CROX), a world leader in innovative casual footwear for all, today announced its third quarter 2026 financial results.
"We delivered a strong third quarter with growth across brands, channels and geographies, while expanding margins year over year through disciplined execution of our brand strategies. The Crocs Brand delivered a record third quarter with revenues up 4%, led by double-digit international revenue growth and continued momentum across our product diversification strategy. HEYDUDE revenues grew 6%, marking an important milestone as we delivered on our commitment stated earlier in the year to return the brand to growth. These results reflect strong execution against our strategic priorities and reinforce our confidence in the trajectory of both brands. As a result, we are raising our full-year 2026 enterprise revenue growth outlook to approximately 3%," said Andrew Rees, Chief Executive Officer.
Mr. Rees continued, "The strength of our business model and exceptional free-cash-flow generation provides us with significant flexibility to invest behind our brands while returning meaningful capital to shareholders. During the quarter, we returned $250 million to shareholders through share repurchases while continuing to strengthen our balance sheet through debt paydown."
Amounts referred to as "Adjusted" or "Non-GAAP" are Non-GAAP measures and include adjustments that are described under the heading "Reconciliation of GAAP Measures to Non-GAAP Measures." A reconciliation of these amounts to their GAAP counterparts is contained in the schedules below.
Third Quarter 2026 Operating Results (Compared to the Same Period Last Year)
Third Quarter 2026 Brand Summary (Compared to the Same Period Last Year)
Balance Sheet and Cash Flow (September 30, 2026, as compared to September 30, 2025)
Financial Outlook
Full Year 2026
For 2026, we expect:
Fourth Quarter 2026
For the fourth quarter of 2026, we expect:
Conference Call Information
A conference call to discuss third quarter results is scheduled for today, Thursday, October 29, 2026, at 8:30 am ET. To receive conference call details, please register at the Investor Relations section of the Crocs website, investors.crocs.com. The webcast will also be available live and on replay through October 29, 2027, at this site.
About Crocs, Inc.:
Crocs, Inc. (Nasdaq: CROX), headquartered in Broomfield, Colorado, is a world leader in innovative casual footwear for all, combining comfort and style with a value that consumers know and love. The Company's brands include Crocs and HEYDUDE, and its products are sold in more than 85 countries through wholesale and direct-to-consumer channels. For more information on Crocs, Inc. visit investors.crocs.com. To learn more about our brands, visit www.crocs.com or www.heydude.com. Individuals can also visit https://investors.crocs.com/news-and-events/ and follow both Crocs and HEYDUDE on their social platforms.
Forward Looking Statements
This press release includes estimates, projections, and statements relating to our business plans, commitments, objectives, and expected operating results that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements, which express management's current views concerning future events or results, use words like "anticipate," "assume," "believe," "confident," "continue," "estimate," "expect," "future," "intend," "plan," "project," "strive," and future or conditional tense verbs like "could," "may," "might," "should," "will," "would," and similar expressions or variations.
These statements include, but are not limited to, statements regarding our financial condition, brand and liquidity outlook, and expectations regarding our future financial results, share repurchases, our strategy, plans, objectives, expectations (financial or otherwise) and intentions, growth potential, statements regarding future financial outlook and future profitability, cash flows, and brand strength, anticipated product portfolio and our ability to deliver sustained, highly profitable growth and create significant shareholder value. These statements involve known and unknown risks, uncertainties, and other factors, which may cause our actual results, performance, or achievements to be materially different from any future results, performances, or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include the factors described in our most recent Annual Report on Form 10-K under the heading "Risk Factors" and our subsequent filings with the Securities and Exchange Commission. Readers are encouraged to review that section and all other disclosures appearing in our filings with the Securities and Exchange Commission.
All information in this document speaks only as of October 29, 2026. We do not undertake any obligation to update publicly any forward-looking statements, whether as a result of the receipt of new information, future events, or otherwise, except as required by applicable law.
Category:Investors
CROCS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share data)
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
Revenues
$ 1,042,583
$ 996,301
$ 3,143,508
$ 3,083,007
Cost of sales
352,849
413,293
1,230,122
1,249,614
Gross profit
689,734
583,008
1,913,386
1,833,393
Selling, general and administrative
expenses
397,807
375,348
1,134,937
1,830,275
Income from operations
291,927
207,660
778,449
3,118
Foreign currency gains (losses), net
1,276
2,957
(2,651)
8,264
Interest income
3,343
531
4,261
1,235
Interest expense
(19,059)
(21,711)
(59,427)
(67,000)
Other (expense) income, net
(53)
(9)
(431)
143
Income (loss) before income taxes
277,434
189,428
720,201
(54,240)
Income tax expense
60,679
43,612
161,003
132,123
Net income (loss)
$ 216,755
$ 145,816
$ 559,198
$ (186,363)
Net income (loss) per common share:
Basic
$ 4.57
$ 2.72
$ 11.43
$ (3.38)
Diluted
$ 4.52
$ 2.70
$ 11.32
$ (3.38)
Weighted average common shares
outstanding:
Basic
47,413
53,641
48,925
55,169
Diluted
47,954
53,989
49,418
55,169
CROCS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands, except share and par value amounts)
September 30,
2026
December 31,
2025
ASSETS
Current assets:
Cash and cash equivalents
$ 163,457
$ 130,354
Accounts receivable, net of allowances of $39,818 and $28,136, respectively
355,022
278,191
Inventories
413,030
368,687
Income taxes receivable
2,918
32,782
Other receivables
25,412
22,082
Prepaid expenses and other assets
67,778
53,787
Total current assets
1,027,617
885,883
Property and equipment, net of accumulated depreciation of $248,818 and $209,873,
respectively
240,778
238,191
Intangible assets, net
1,312,049
1,324,680
Goodwill
404,630
404,689
Deferred tax assets, net
904,841
935,054
Restricted cash
3,496
3,557
Right-of-use assets
332,085
338,669
Other assets
55,175
44,027
Total assets
$ 4,280,671
$ 4,174,750
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$ 272,506
$ 266,090
Accrued expenses and other liabilities
266,533
300,959
Income taxes payable
84,174
47,308
Current operating lease liabilities
90,820
85,772
Total current liabilities
714,033
700,129
Deferred tax liabilities, net
844
882
Long-term income taxes payable
641,563
649,057
Long-term borrowings
1,289,044
1,230,885
Long-term operating lease liabilities
283,254
297,192
Other liabilities
6,926
3,322
Total liabilities
2,935,664
2,881,467
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.001 per share, 250.0 million shares authorized, 111.2 million
and 110.7 million issued, 46.2 million and 50.2 million outstanding, respectively
111
111
Treasury stock, at cost, 65.0 million and 60.5 million shares, respectively
(3,564,417)
(3,040,416)
Additional paid-in capital
934,497
896,605
Retained earnings
4,039,836
3,480,638
Accumulated other comprehensive loss
(65,020)
(43,655)
Total stockholders' equity
1,345,007
1,293,283
Total liabilities and stockholders' equity
$ 4,280,671
$ 4,174,750
CROCS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Nine Months Ended September 30,
2026
2025
Cash flows from operating activities:
Net income (loss)
$ 559,198
$ (186,363)
Adjustments to reconcile net income (loss) to net cash provided by operating
activities:
Depreciation and amortization
60,875
58,337
Operating lease cost
85,421
76,614
Share-based compensation
36,496
28,512
Asset impairments
3,301
738,115
Deferred taxes
(47)
17,057
Other non-cash items
10,055
6,059
Changes in operating assets and liabilities:
Accounts receivable
(76,691)
(65,052)
Inventories
(45,873)
(40,165)
Prepaid expenses and other assets
(30,585)
(17,372)
Accounts payable, accrued expenses and other liabilities
(22,650)
(68,459)
Right-of-use assets and operating lease liabilities
(87,614)
(77,580)
Income taxes
69,303
(11,802)
Cash provided by operating activities
561,189
457,901
Cash flows from investing activities:
Purchases of property, equipment, and software
(53,615)
(45,120)
Cash used in investing activities
(53,615)
(45,120)
Cash flows from financing activities:
Proceeds from borrowings
476,550
626,000
Repayments of borrowings
(425,550)
(664,000)
Repurchases of common stock, including excise tax
(506,194)
(402,153)
Repurchases of common stock for tax withholding
(17,338)
(4,245)
Cash used in financing activities
(472,532)
(444,398)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
(2,000)
5,462
Net change in cash, cash equivalents, and restricted cash
33,042
(26,155)
Cash, cash equivalents, and restricted cash—beginning of period
133,911
183,678
Cash, cash equivalents, and restricted cash—end of period
$ 166,953
$ 157,523
CROCS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
In addition to financial measures presented on the basis of accounting principles generally accepted in the United States of America ("GAAP"), we present "Non-GAAP gross profit," "Non-GAAP gross margin," "Non-GAAP gross margin by brand," "Non-GAAP selling, general, and administrative expenses," "Non-GAAP selling, general and administrative expenses as a percent of revenues," "Non-GAAP income from operations," "Non-GAAP operating margin," "Non-GAAP income before income taxes," "Non-GAAP income tax expense," "Non-GAAP effective tax rate," "Non-GAAP net income," and "Non-GAAP basic and diluted net income per common share," which are non-GAAP financial measures. We also present future period guidance for "Non-GAAP operating margin," "Non-GAAP effective tax rate," "Non-GAAP diluted earnings per share," and "Free cash flow." We also present a long-term target for 'Net leverage.' Non-GAAP results exclude the impact of items that management believes affect the comparability or underlying business trends in our condensed consolidated financial statements in the periods presented.
We also present certain information related to our current period results of operations through "constant currency," which is a non-GAAP financial measure and should be viewed as a supplement to our results of operations and presentation of reportable segments under GAAP. Constant currency represents current period results that have been retranslated using exchange rates used in the prior year comparative period to enhance the visibility of the underlying business trends excluding the impact of foreign currency exchange rate fluctuations.
Management uses non-GAAP results to assist in comparing business trends from period to period on a consistent basis in communications with the board of directors, stockholders, analysts, and investors concerning our financial performance. We believe that these non-GAAP measures, in addition to corresponding GAAP measures, are useful to investors and other users of our condensed consolidated financial statements as an additional tool for evaluating operating performance and trends by providing meaningful information about operations compared to our peers by excluding the impacts of various differences. The calculation of our non-GAAP financial metrics may vary from company to company. As a result, our calculation of these metrics may not be comparable to similarly titled metrics used by other companies.
Management believes Non-GAAP gross profit, Non-GAAP gross margin, and Non-GAAP gross margin by brand are useful performance measures for investors because they provide investors with a means of comparing these measures between periods without the impact of certain expenses that we believe are not indicative of our routine cost of sales. Our routine cost of sales includes core product costs and distribution expenses primarily related to receiving, inspecting, warehousing, and packaging product and transportation costs associated with delivering products from distribution centers. Costs not indicative of our routine cost of sales may or may not be recurring in nature and include costs to expand and transition to new distribution centers.
Management believes Non-GAAP selling, general and administrative expenses and Non-GAAP selling, general and administrative expenses as a percent of revenues are useful performance measures for investors because they provide a more meaningful comparison to prior periods and may be indicative of the level of such expenses to be incurred in future periods. These measures exclude the impact of certain expenses not related to our normal operations that are expected to be non-recurring in nature, such as impairment charges.
Non-GAAP income from operations and Non-GAAP operating margin reflect the impact of Non-GAAP gross profit and Non-GAAP selling, general, and administrative expenses, as discussed above. We believe these are useful performance measures for investors because they provide a basis to compare performance in the period to prior periods.
Non-GAAP income before income taxes reflects the impact of Non-GAAP income from operations, as discussed above. We believe this is a useful performance measure for investors because it provides a basis to compare performance in the period to prior periods.
Management believes Non-GAAP income tax expense is a useful performance measure for investors because it provides a basis to compare our tax rates to historical tax rates, and because the adjustment is necessary in order to calculate Non-GAAP net income.
Management believes Non-GAAP effective tax rate is a useful performance measure for investors because it provides an ongoing effective tax rate that they can use for historical comparisons and forecasting.
Management believes Non-GAAP net income is a useful performance measure for investors because it focuses on underlying operating results and trends and improves the comparability of our results to prior periods. This measure reflects the impact of Non-GAAP gross profit, Non-GAAP selling, general, and administrative expenses, and Non-GAAP income tax expense, as described above.
Management believes Non-GAAP basic and diluted net income per common share are useful performance measures for investors because they focus on underlying operating results and trends and improve the comparability of our results to prior periods. These measures reflect the impact of Non-GAAP gross profit, Non-GAAP selling, general, and administrative expenses, and Non-GAAP income tax expense, as described above.
Management believes Net leverage is a useful performance measure for investors because it provides a measure of our financial strength and liquidity.
Free cash flow is calculated as 'Cash provided by operating activities' less 'Purchases of property, equipment, and software.' Management believes free cash flow is useful for investors because it provides a clear measure of our ability to generate cash for discretionary uses such as funding growth opportunities, repurchasing shares, and reducing debt.
For the three and nine months ended September 30, 2026, management believes it is helpful to evaluate our results excluding the impacts of various adjustments relating to special or non-recurring items. Investors should not consider these non-GAAP measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
CROCS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(UNAUDITED)
Non-GAAP gross profit and gross margin reconciliation:
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
(in thousands)
GAAP revenues
$ 1,042,583
$ 996,301
$ 3,143,508
$ 3,083,007
GAAP gross profit
$ 689,734
$ 583,008
$ 1,913,386
$ 1,833,393
IEEPA tariff refunds (1)
(64,071)
—
(64,071)
—
Distributor takeback costs (2)
—
—
4,356
—
Distribution centers (3)
3,053
—
6,786
—
Other
25
—
143
—
Total adjustments
(60,993)
—
(52,786)
—
Non-GAAP gross profit
$ 628,741
$ 583,008
$ 1,860,600
$ 1,833,393
GAAP gross margin
66.2 %
58.5 %
60.9 %
59.5 %
Non-GAAP gross margin
60.3 %
58.5 %
59.2 %
59.5 %
(1) These refunds, resulting from the February 20, 2026, United States Supreme Court Ruling, are non-recurring.
(2) Relates to the takeback of a distributor in Malaysia.
(3) Relates to the transition away from a third-party logistics provider for the HEYDUDE Brand, software transition costs at our Crocs Brand
distribution center in Dayton, Ohio, and other distribution center related transition costs.
Non-GAAP gross margin reconciliation by brand:
Crocs Brand:
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
GAAP Crocs Brand gross margin
68.6 %
61.8 %
63.7 %
62.3 %
Non-GAAP adjustments:
IEEPA tariff refunds (1)
(5.3) %
— %
(1.7) %
— %
Distributor takeback costs (2)
— %
— %
0.1 %
— %
Distribution centers (3)
0.1 %
— %
0.1 %
— %
Other
less than 0.1%
— %
less than 0.1%
— %
Non-GAAP Crocs Brand gross
margin
63.4 %
61.8 %
62.2 %
62.3 %
(1) These refunds, resulting from the February 20, 2026, United States Supreme Court Ruling, are non-recurring.
(2) Relates to the takeback of a distributor in Malaysia.
(3) Relates to software transition costs at our Crocs Brand distribution center in Dayton, Ohio and other distribution center related transition
costs.
HEYDUDE Brand:
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
GAAP HEYDUDE Brand gross
margin
55.1 %
42.3 %
47.4 %
46.6 %
Non-GAAP adjustments:
IEEPA tariff refunds (1)
(10.6) %
— %
(3.6) %
— %
Distribution centers (2)
1.3 %
— %
0.8 %
— %
Non-GAAP HEYDUDE Brand
gross margin
45.8 %
42.3 %
44.6 %
46.6 %
(1) These refunds, resulting from the February 20, 2026, United States Supreme Court Ruling, are non-recurring.
(2) Relates to the transition away from a third-party logistics provider.
Non-GAAP selling, general and administrative reconciliation:
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
(in thousands)
GAAP revenues
$ 1,042,583
$ 996,301
$ 3,143,508
$ 3,083,007
GAAP selling, general and
administrative expenses
$ 397,807
$ 375,348
$ 1,134,937
$ 1,830,275
Impairment of indefinite-lived
trademark (1)
—
—
—
(430,000)
Impairment of goodwill (2)
—
—
—
(307,000)
Charges incurred in connection
with cost savings initiatives
(790)
—
(5,373)
—
Impairment of leasehold
improvement assets (3)
—
—
(3,301)
—
Severance costs (4)
(261)
—
999
Other
—
—
38
—
Total adjustments
(1,051)
—
(7,637)
(737,000)
Non-GAAP selling, general
and administrative expenses (5)
$ 396,756
$ 375,348
$ 1,127,300
$ 1,093,275
GAAP selling, general and
administrative expenses as a
percent of revenues
38.2 %
37.7 %
36.1 %
59.4 %
Non-GAAP selling, general and
administrative expenses as a
percent of revenues
38.1 %
37.7 %
35.9 %
35.5 %
(1) Represents a prior year impairment of the HEYDUDE indefinite-lived trademark.
(2) Represents a prior year impairment of the HEYDUDE Brand reporting unit goodwill.
(3) Represents impairment charges for certain HEYDUDE leasehold improvement assets.
(4) Represents operational workforce reduction charges incurred in connection with cost savings initiatives in the three months ended
September 30, 2026. Additionally, the nine months ended September 30, 2026, includes a change in estimate for severance costs
recorded as of December 31, 2025.
(5) Non-GAAP selling, general and administrative expenses are presented gross of tax.
Non-GAAP income from operations and operating margin reconciliation:
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
(in thousands)
GAAP revenues
$ 1,042,583
$ 996,301
$ 3,143,508
$ 3,083,007
GAAP income from operations
$ 291,927
$ 207,660
$ 778,449
$ 3,118
Non-GAAP gross profit adjustments (1)
(60,993)
—
(52,786)
—
Non-GAAP selling, general and
administrative expenses adjustments (2)
1,051
—
7,637
737,000
Non-GAAP income from operations
$ 231,985
$ 207,660
$ 733,300
$ 740,118
GAAP operating margin
28.0 %
20.8 %
24.8 %
0.1 %
Non-GAAP operating margin
22.3 %
20.8 %
23.3 %
24.0 %
(1) See 'Non-GAAP gross profit and gross margin reconciliation' above for more details.
(2) See 'Non-GAAP selling, general and administrative expenses and selling, general and administrative expenses as a percent of revenues
reconciliation' above for more details.
Non-GAAP income tax expense and effective tax rate reconciliation:
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
(in thousands)
GAAP income from operations
$ 291,927
$ 207,660
$ 778,449
$ 3,118
GAAP income (loss) before income
taxes
277,434
189,428
720,201
(54,240)
Non-GAAP income from operations (1)
$ 231,985
$ 207,660
$ 733,300
$ 740,118
GAAP non-operating income (expense):
Foreign currency gains (losses), net
1,276
2,957
(2,651)
8,264
Interest income
3,343
531
4,261
1,235
Interest expense
(19,059)
(21,711)
(59,427)
(67,000)
Other (expense) income, net
(53)
(9)
(431)
143
Non-GAAP income before income
taxes
$ 217,492
$ 189,428
$ 675,052
$ 682,760
GAAP income tax expense
$ 60,679
$ 43,612
$ 161,003
$ 132,123
Tax effect of non-GAAP operating
adjustments
(11,446)
—
(9,040)
29,942
Impact of intra-entity IP transactions (2)
(11,423)
(11,626)
(33,706)
(43,900)
Non-GAAP income tax expense
$ 37,810
$ 31,986
$ 118,257
$ 118,165
GAAP effective income tax rate
21.9 %
23.0 %
22.4 %
(243.6) %
Non-GAAP effective income tax rate
17.4 %
16.9 %
17.5 %
17.3 %
(1) See 'Non-GAAP income from operations and operating margin reconciliation' above for more details.
(2) In the fourth quarter of 2024, and previously in 2023, 2021, and 2020, we made changes to our international legal structure, including an
intra-entity transaction related to certain intellectual property rights, primarily to align with current and future international operations.
The transactions resulted in a step-up in the tax basis of intellectual property rights and correlated increases in foreign deferred tax assets
based on the fair value of the transferred intellectual property rights. This adjustment represents the current period impact of these
transactions.
Non-GAAP net income per share reconciliation:
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
(in thousands, except per share data)
Numerator:
GAAP net income (loss)
$ 216,755
$ 145,816
$ 559,198
$ (186,363)
Non-GAAP gross profit
adjustments (1)
(60,993)
—
(52,786)
—
Non-GAAP selling, general and
administrative expenses
adjustments (2)
1,051
—
7,637
737,000
Non-GAAP interest income
adjustment (3)
(2,688)
—
(2,688)
—
Tax effect of non-GAAP
adjustments (4)
22,869
11,626
42,746
13,958
Non-GAAP net income
$ 176,994
$ 157,442
$ 554,107
$ 564,595
Denominator:
GAAP weighted average common
shares outstanding - basic
47,413
53,641
48,925
55,169
Plus: GAAP dilutive effect of
stock options and unvested
restricted stock units
541
348
493
—
GAAP weighted average common
shares outstanding - diluted
47,954
53,989
49,418
55,169
GAAP weighted average common
shares outstanding - basic
55,169
Plus: dilutive effect of stock
options and unvested restricted
stock units
368
Non-GAAP weighted average
common shares outstanding -
diluted
55,537
GAAP net income (loss) per
common share:
Basic
$ 4.57
$ 2.72
$ 11.43
$ (3.38)
Diluted
$ 4.52
$ 2.70
$ 11.32
$ (3.38)
Non-GAAP net income per common
share:
Basic
$ 3.73
$ 2.94
$ 11.33
$ 10.23
Diluted
$ 3.69
$ 2.92
$ 11.21
$ 10.17
(1) See 'Non-GAAP gross profit and gross margin reconciliation' above for more information.
(2) See 'Non-GAAP selling, general and administrative expenses and selling, general and administrative expenses as a percent of revenues
reconciliation' above for more information.
(3) Relates to interest on IEEPA tariff refunds received during the three months ended September 30, 2026.
(4) See 'Non-GAAP income tax expense (benefit) and effective tax rate reconciliation' above for more information.
Free cash flow reconciliation:
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
(in thousands)
Cash provided by operating activities
$ 290,421
$ 239,336
$ 561,189
$ 457,901
Purchases of property, equipment,
and software
(14,886)
(13,174)
(53,615)
(45,120)
Free cash flow
$ 275,535
$ 226,162
$ 507,574
$ 412,781
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL GUIDANCE
Fourth Quarter 2026:
Approximately:
Non-GAAP operating margin reconciliation:
GAAP operating margin
19.5 %
Non-GAAP adjustments (1)
1.0 %
Non-GAAP operating margin
20.5 %
Non-GAAP diluted earnings per share reconciliation:
GAAP diluted earnings per share
$3.04 to $3.24
Non-GAAP adjustments (1)(2)
$0.21
Non-GAAP diluted earnings per share
$3.25 to $3.45
Full Year 2026:
Approximately:
Non-GAAP operating margin reconciliation:
GAAP operating margin
>23.5%
Non-GAAP adjustments (1)
(1.0) %
Non-GAAP operating margin
>22.5%
Non-GAAP effective tax rate reconciliation:
GAAP effective tax rate
23 %
Non-GAAP adjustments (2)
(5) %
Non-GAAP effective tax rate
18 %
Non-GAAP diluted earnings per share reconciliation:
GAAP diluted earnings per share
$14.71 to $14.91
Non-GAAP adjustments (1)(2)
$(0.26)
Non-GAAP diluted earnings per share
$14.45 to $14.65
(1) During 2026, we expect to incur a non-GAAP net benefit of $40 million, primarily associated with IEEPA tariff refunds and our cost
reduction initiatives. This estimate does not include the receipt of potential IEEPA tariff refunds, as we are not able to predict the timing
quarter-by-quarter. We plan to recognize IEEPA tariff refunds when they are realized or considered realizable, in accordance with the
gain contingency model.
(2) In the fourth quarter of 2024, and previously in 2023, 2021, and 2020, we made changes to our international legal structure, including an
intra-entity transaction related to certain intellectual property rights, primarily to align with current and future international operations.
The transactions resulted in a step-up in the tax basis of intellectual property rights and correlated increases in foreign deferred tax assets
based on the fair value of the transferred intellectual property rights. This adjustment represents the full year 2026 impact of these
transactions.
CROCS, INC. AND SUBSIDIARIES
REVENUES BY SEGMENT, CHANNEL, AND GEOGRAPHY
(UNAUDITED)
Three Months Ended
September 30,
Nine Months Ended
September 30,
% Change
Constant Currency
% Change (1)
Favorable (Unfavorable)
2026
2025
2026
2025
Q3 2026-
2025
YTD 2026-
2025
Q3 2026-
2025
YTD 2026-
2025
($ in thousands)
Crocs Brand:
North America:
Wholesale
$ 137,226
$ 144,353
$ 428,172
$ 481,563
(4.9) %
(11.1) %
(4.8) %
(11.2) %
Direct-to-consumer (2)
301,143
303,352
814,856
791,789
(0.7) %
2.9 %
(0.6) %
2.9 %
Total North America (3)
438,369
447,705
1,243,028
1,273,352
(2.1) %
(2.4) %
(2.0) %
(2.4) %
International:
Wholesale
225,139
220,003
821,514
824,276
2.3 %
(0.3) %
2.4 %
(2.1) %
Direct-to-consumer
209,213
168,521
576,032
459,799
24.1 %
25.3 %
23.8 %
22.9 %
Total International
434,352
388,524
1,397,546
1,284,075
11.8 %
8.8 %
11.7 %
6.8 %
Total Crocs Brand
$ 872,721
$ 836,229
$ 2,640,574
$ 2,557,427
4.4 %
3.3 %
4.4 %
2.3 %
Crocs Brand:
Wholesale
$ 362,365
$ 364,356
$ 1,249,686
$ 1,305,839
(0.5) %
(4.3) %
(0.4) %
(5.5) %
Direct-to-consumer
510,356
471,873
1,390,888
1,251,588
8.2 %
11.1 %
8.2 %
10.2 %
Total Crocs Brand
872,721
836,229
2,640,574
2,557,427
4.4 %
3.3 %
4.4 %
2.3 %
HEYDUDE Brand:
Wholesale
79,087
69,402
245,053
279,855
14.0 %
(12.4) %
14.1 %
(12.9) %
Direct-to-consumer
90,775
90,670
257,881
245,725
0.1 %
4.9 %
0.2 %
4.9 %
Total HEYDUDE Brand (4)
169,862
160,072
502,934
525,580
6.1 %
(4.3) %
6.2 %
(4.6) %
Total consolidated revenues
$ 1,042,583
$ 996,301
$ 3,143,508
$ 3,083,007
4.6 %
2.0 %
4.6 %
1.1 %
(1) Reflects year over year change as if the current period results were in constant currency, which is a non-GAAP financial measure. See 'Reconciliation of
GAAP Measures to Non-GAAP Measures' above for more information.
(2) Results for the three months ended September 30, 2026, include an approximate (2.7%) change compared to the same period in 2025, reflecting the partial
period impact of a business model change which we began implementing during the third quarter.
(3) North America includes the United States and Canada.
(4) The vast majority of HEYDUDE Brand revenues are derived from North America.
Investor Contact:
Elizabeth Bouquard Pizzi, Crocs, Inc.
[email protected]
PR Contact:
Melissa Layton, Crocs, Inc.
[email protected]
SOURCE Crocs, Inc.