Crocs brand surpasses one billion dollars in quarterly revenue

US footwear company Crocs, Inc. (Crocs) reported its financial results for the second quarter ended June 30, 2026. Consolidated revenues rose 2.6 percent, or 2 percent on a constant currency basis, reaching 1.18 billion dollars. The growth was led by the flagship Crocs brand, which surpassed one billion dollars in quarterly revenue for the first time.

Direct-to-consumer (D2C) revenues grew 12 percent, or 11.3 percent on a constant currency basis. In contrast, wholesale channel revenues fell 7.2 percent, or 7.6 percent on a constant currency basis.

The gross margin for the quarter contracted to 59.4 percent from 61.7 percent in the prior-year period. Adjusted gross margin decreased 170 basis points to 60 percent. Diluted earnings per share reached 4.13 dollars, while adjusted diluted earnings per share increased 7.6 percent to 4.55 dollars.

Crocs chief executive officer Andrew Rees stated: “We are pleased to have delivered a stronger-than-expected second quarter, highlighted by record enterprise revenue, including the Crocs Brand surpassing 1 billion dollars in quarterly revenue for the first time ever. Our results reflect broad consumer demand across both brands, healthy direct-to-consumer growth, and strong consumer response to new product innovation.”

Divisional performance and capital allocation

Across the corporate portfolio, performance diverged between the core brand and secondary labels:

Crocs brand revenues expanded 4.3 percent to 1.0 billion dollars, or 3.7 percent on a constant currency basis. D2C revenues grew 12.9 percent to 559 million dollars, while wholesale revenues declined 5 percent to 441 million dollars. Across markets, North America revenues increased 0.4% to 459 million dollars and international revenues expanded 7.8 percent to 542 million dollars.

On the contrary, Heydude brand revenues fell 5.7 percent to 179 million dollars, or 5.8 percent on a constant currency basis. D2C revenues increased 7.2 percent to 96 million dollars but wholesale revenues fell 17.2 percent to 83 million dollars.

During the quarter, the company repaid 31 million dollars of debt and repurchased approximately 2.3 million common shares for 251 million dollars, at an average share price of 106.87 dollars. On July 27, 2026, the board approved a 1.5 billion dollars increase to the share repurchase authorization, bringing total available repurchases to approximately 2.0 billion dollars.

Financial outlook for third quarter and full year 2026

Following the second quarter performance, management updated its financial projections for the full year 2026:

Total Revenue: Expected to rise approximately 1 percent to 2 percent compared to full year 2025, up from previous guidance of down 1 percent to up 1 percent.

Crocs brand: Revenues projected to grow 2 percent to 2 percent.

Heydude brand: Revenues forecasted to decline 4 percent to 2 percent, an improvement from previous guidance of a 7 percent to 5 percent decline.

Adjusted operating margin: Expected to expand modestly from 22.3 percent.

Adjusted diluted earnings per share: Projected between 13.70 dollars and 14.00 dollars, raised from the prior range of 13.20 dollars to 13.75 dollars.

For the third quarter of 2026, revenues are expected to remain flat compared to the third quarter of 2025. The Crocs brand is projected to grow by approximately 1 percent, while Heydude revenues are expected to range from a 3 percent decline to flat. Third quarter adjusted operating margin is anticipated at 21.5 percent, with adjusted diluted earnings per share expected between 3.20 dollars and 3.30 dollars.