Crocs posted consolidated revenues of $996m in Q3 compared to $836m in 2024, with DTC up 1.6% but wholesale down 14.7%. Operating income fell 23% to $208m from $270m, while adjusted diluted earnings per share dropped 18.9% to $2.92. Crocs reported a net income loss of $145m compared to $199m in the same period last year and a decrease in gross profit to $583m from $633m. Despite lower revenues, Crocs continued to generate strong cash flow, allowing it to repurchase 2.4m shares worth $203m and reduce deb ...

Core Viewpoint - The once-popular "ugly shoes" are facing significant challenges, with UGG's direct-to-consumer sales declining sharply, while HOKA continues to show strong growth [2][5]. Group 1: Deckers Brands Financial Performance - Deckers Brands reported a revenue increase of 9.1% to $1.431 billion for Q2 of FY2026, with HOKA's revenue growing by 11.1% to $630 million and UGG's revenue increasing by 10.1% to $760 million [5]. - The direct-to-consumer (DTC) sales for UGG fell by 10%, while wholesale business grew by 17%, indicating a shift in consumer purchasing behavior [5][7]. - Deckers' total sales contributions from UGG and HOKA are 51% and 45%, respectively, with HOKA nearly matching UGG's scale [7]. Group 2: Market Challenges for UGG and Crocs - UGG's DTC sales decline is attributed to normalized inventory levels in wholesale channels, weakened consumer sentiment, and a preference for multi-brand retail shopping [5]. - Crocs reported a revenue decline of 6.2% to $996.3 million for Q3, with a net profit drop of 27% to $145.8 million, and a net loss of $186.4 million for the first nine months of the year [9][11]. - Crocs' core brand revenue decreased by 2.5% to $836.2 million, while the HEYDUDE brand saw a 21.6% drop to $160.1 million [11]. Group 3: Strategic Responses and Market Trends - Crocs plans to slow growth to maintain long-term brand health, including reducing digital promotions and wholesale inventory [11]. - The market for "ugly shoes" is losing traction, with emerging categories like clogs and creek shoes gaining popularity, while traditional sports brands are expected to benefit from upcoming major sporting events [12]. - HOKA's strategy of being versatile across different settings is seen as more sustainable compared to the marketing-driven approach of UGG and Crocs [12].

Core Insights - The S&P 500 has remained stable during the early part of the Q3 earnings season, but there is significant underlying volatility, particularly among small- and mid-cap stocks that are more sensitive to declining consumer spending [1] Group 1: Market Performance - The S&P 500 has managed to stay afloat despite high volatility [1] - Small- and mid-cap stocks are experiencing direct exposure to weaker consumer spending, indicating potential challenges ahead [1] Group 2: Analyst Background - Gary Alexander has extensive experience in covering technology companies and has worked in Silicon Valley, providing insights into current industry trends [1] - He has been a contributor to Seeking Alpha since 2017 and has been featured in various web publications [1]

Crocs, Inc. (NASDAQ:CROX) shares are trading slightly lower on Friday.On Thursday, the company reported third-quarter adjusted earnings per share of $2.92, beating the analyst consensus estimate of $2.36.Crocs guided fourth-quarter adjusted EPS to a range of $1.82 to $1.92, and expects sales of about $910.6 million, below the $922.7 million Street view.Also Read: Roblox’s Strong Results Impress Wall Street, But Cautious 2026 Outlook Creates UncertaintyBank of America Securities analyst Christopher Nardone r ...

Core Insights - Crocs, Inc. reported third-quarter adjusted earnings per share (EPS) of $2.92, surpassing the analyst consensus estimate of $2.36 [1] - The company guided fourth-quarter adjusted EPS to a range of $1.82 to $1.92, with expected sales of approximately $910.6 million, which is below the Street's expectation of $922.7 million [1] Analyst Ratings and Forecasts - Bank of America Securities analyst Christopher Nardone reiterated a Buy rating on Crocs, raising the price forecast from $98 to $112, citing steady improvement at HeyDude and undervalued cash flow strength [2] - Nardone raised his 2025 EPS forecast by 8% to $12.16, attributing this to the earnings beat and better fourth-quarter margins [4] Margin and Cost Management - Third-quarter trends are showing signs of bottoming, which boosts confidence in future performance, with additional cost savings expected to support margin gains into 2026 [3] - Nardone anticipates fourth-quarter gross margins to face "peak" tariff pressure, but expects a slight upside to gross margin compared to previous estimates [4][5] Operational Outlook - Management's commitment to improving North America Direct-to-Consumer (DTC) performance in the fourth quarter is seen as encouraging and may indicate a recovery [3] - Preliminary guidance suggests operating margin growth in fiscal 2026, regardless of revenue, which exceeds earlier expectations [4]

Core Insights - Crocs reported a consolidated revenue of $996 million for Q3 2025, a decrease of 6.2% from $1.06 billion in the same quarter last year [1] - The company's operating income fell by 23% to $208 million, leading to a reduction in operating margin from 25.4% to 20.8% [1] - Net income decreased to $145.8 million compared to $200 million in the previous year [1] - Gross margin contracted by 110 basis points to 58.5% from 59.6% year-on-year [1] Sales Performance - Direct-to-consumer (DTC) revenue increased by 1.6%, while wholesale revenue dropped by 14.7% [2] - Crocs-branded revenue declined by 2.5% to $836 million, with DTC sales rising by 2% to $472 million [2] - HEYDUDE brand revenue fell by 21.6% to $160 million, with DTC sales slipping by 0.5% [3] Regional Performance - North America revenue for Crocs decreased by 8.8% to $448 million, while international revenue increased by 5.8% to $389 million [3] Financial Actions and Future Guidance - The company repurchased 2.4 million shares for $203 million and reduced debt by $63 million during the quarter [4] - For Q4 2025, overall revenue is expected to be around 8% lower than the same period in 2024, with Crocs-branded revenue anticipated to decline by about 3% [4] - Capital expenditure for the full year 2025 is projected to be between $70 million and $75 million [4] Management Commentary - CEO Andrew Rees emphasized the company's strong profitability and cash flow, which facilitated share repurchases and debt reduction [5] - The company aims for $50 million in gross cost savings in 2025 and has identified an additional $100 million in potential savings for 2026 [6]

Core Insights - Crocs, Inc. reported an earnings per share (EPS) of $2.64, exceeding estimates of $2.36, but down from $4.23 the previous year [2][5] - The company's revenue for the quarter was approximately $996.3 million, surpassing expectations but reflecting a 6.2% decline year-over-year, primarily due to a 14.7% drop in wholesale revenues [2][5] - Direct-to-consumer sales increased by 1.6%, indicating a successful strategic focus on this channel [2][5] Financial Performance - Crocs is targeting $100 million in cost savings for 2026, in addition to $50 million for 2025, demonstrating a commitment to operational efficiency [3][5] - The company maintains a price-to-earnings (P/E) ratio of approximately 24.95 and a price-to-sales ratio of about 1.11, reflecting market confidence in its earnings and sales potential [4][5] - Crocs has a debt-to-equity ratio of 0.28, indicating a relatively low level of debt and suggesting financial stability [4][5]

Shares of Crocs Inc. fell Thursday after sales of the footwear maker's namesake brand declined for the first time in five years — and are expected to continue falling as customers continue to be more ... ...

Core Insights - Crocs, Inc. (CROX) reported better-than-expected third-quarter 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate, although both metrics decreased year over year [1][2] Financial Performance - Adjusted earnings per share were $2.92, surpassing the Zacks Consensus Estimate of $2.39, but down 18.9% from the previous year [2] - Consolidated revenues fell 6.2% to $996 million compared to the prior year, exceeding the Zacks Consensus Estimate of $968 million; on a constant-currency basis, revenues decreased by 6.8% [4] - Direct-to-consumer (DTC) revenues increased by 1.6%, while wholesale revenues declined by 14.7%; on a constant-currency basis, DTC revenues rose by 0.9% and wholesale revenues dropped by 15.1% [4] Brand Performance - Revenues for the Crocs brand decreased by 2.5% year over year to $836 million, with wholesale revenues down 7.9% but offset by a 2% rise in DTC revenues; on a constant-currency basis, revenues fell 3.2% [5] - The HEYDUDE brand experienced a 21.6% decline in revenues to $160.1 million, driven by a 38.6% drop in wholesale revenues and a 0.5% decrease in DTC revenues; on a constant-currency basis, revenues declined by 11.9% [6] Profitability Metrics - Adjusted gross profit decreased by 7.9% year over year to $583 million, with the adjusted gross margin contracting by 110 basis points to 58.5% [7] - Adjusted operating income fell 23% year over year to $207.7 million, with the adjusted operating margin contracting by 460 basis points to 20.8% [7] Financial Position - As of the end of the third quarter 2025, the company had cash and cash equivalents of $154 million, long-term borrowings of $1.32 billion, and stockholders' equity of $1.36 billion [8] - The company repaid $63 million of debt and repurchased 2.4 million shares for $203 million, with $927 million of share repurchase authorization remaining [8] Future Outlook - For Q4 2025, management anticipates revenues to decline approximately 8% year over year, with Crocs brand revenues expected to drop around 3% and HEYDUDE brand revenues projected to decrease in the mid-20% range [9][10] - Adjusted earnings per share are forecasted to be in the range of $1.82 to $1.92, excluding potential impacts from future share repurchases [11]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________________ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 000-51754 ____________________________________________________ ...