Crocs raises full year outlook following better than expected Q1 results

US footwear group Crocs has upwardly revised its annual financial forecast after reporting a robust start to the 2026 fiscal year. The company delivered enterprise revenue of 921 million dollars for the first quarter ending March 31, 2026, supported by strong performance in direct-to-consumer (DTC) channels across its brand portfolio.

Despite a consolidated revenue decrease of 1.7 percent compared to the same period last year, or 4 percent on a constant currency basis, the group surpassed internal projections. Growth was primarily driven by the DTC segment, which rose 12.1 percent to reach 10.2 percent on a constant currency basis. Conversely, wholesale revenues saw a decline of 9.9 percent.

International growth offsets North American decline

The flagship Crocs brand reported a slight revenue increase of 0.8 percent to reach 767 million dollars. While North American revenues for the brand fell 6.1 percent to 346 million dollars, international markets provided a necessary counterbalance. International revenues grew 7.2 percent to 421 million dollars, reflecting the global reach of the casual footwear label.

Crocs chief executive officer, Andrew Rees, stated that the results were “fueled by broad consumer relevance for both of our brands and disciplined execution against our strategy.” Rees noted that the company is encouraged by the consumer response to product innovation across various categories.

Heydude brand faces wholesale challenges

The Italian-founded brand Heydude, acquired by the group in 2022, experienced a more difficult quarter with revenues decreasing 12.3% to 154 million dollars. This decline was largely attributed to a 24.7 percent drop in wholesale revenues. However, the DTC channel for Heydude remained a bright spot, increasing 8.6 percent to 71 million dollars.

For the full year 2026, Crocs now expects revenues to range between a 1 percent decrease and a 1 percent increase compared to the full year 2025. This is an improvement from previous guidance which suggested a more conservative outlook. The group has also raised its adjusted diluted earnings per share (EPS) forecast to a range of 13.20 dollars to 13.75 dollars.

In the second quarter of 2026, the company anticipates Crocs brand revenues to rise between 1 percent and 3 percent, while Heydude is expected to see a further decline of 12 percent to 14 percent.