Crocs reported lower third-quarter profit and sales as demand for its namesake brand continues to fall from prior years https://t.co/wP4HKNqj23 ...

Crocs (CROX) reported $996.3 million in revenue for the quarter ended September 2025, representing a year-over-year decline of 6.2%. EPS of $2.92 for the same period compares to $3.60 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $968.06 million, representing a surprise of +2.92%. The company delivered an EPS surprise of +22.18%, with the consensus EPS estimate being $2.39.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stre ...

Financial Data and Key Metrics Changes - The company's third quarter revenue was approximately $1 billion, down 7% compared to the prior year [19] - Adjusted diluted earnings per share decreased by 19% to $2.92 [24] - Adjusted gross margin for the enterprise was 58.5%, down 110 basis points year-over-year, impacted by tariffs [21] - Adjusted operating margin was 20.8%, down 460 basis points compared to the prior year [24] Business Line Data and Key Metrics Changes - Crocs brand revenue was $836 million, down 3% year-over-year, with wholesale down 8% and direct-to-consumer (D2C) up 1% [19] - HEYDUDE brand revenue was $160 million, down 22% year-over-year, but better than expectations, with D2C down 1% [20] - International revenue for Crocs was up 4%, driven by a 23% increase in D2C performance [20] Market Data and Key Metrics Changes - North American revenues were down 9% year-over-year, with D2C down 8% and wholesale down 11% [20] - China delivered mid-20% revenue growth year-over-year, outperforming the overall market [13] - Strong growth was also observed in Japan and key markets in Western Europe [13] Company Strategy and Development Direction - The company is focusing on product innovation, particularly in clogs and sandals, and diversifying into new categories [9][10] - A strategic pullback on promotional activities is aimed at protecting brand health and driving future growth [5][6] - The company is leveraging digital and social marketing to enhance consumer engagement, including partnerships with the NFL and campaigns on TikTok [10][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a bifurcated North American consumer base, with affluent consumers continuing to purchase while others are more cautious [43] - The company expects revenue to decline approximately 8% in Q4, with Crocs brand down about 3% and HEYDUDE down in the mid-20% range [26] - Management is confident in returning HEYDUDE to profitability and growth despite recent challenges [38] Other Important Information - The company repurchased 2.4 million shares for $203 million during the quarter, representing about 4% of its float [25] - The company has identified $100 million in additional gross cost savings for 2026 [27] Q&A Session Summary Question: About incremental cost savings initiatives and structural deficiencies - Management highlighted efficiencies in the supply chain and reorganization efforts to drive cost savings and improve operating leverage [31][32] Question: Actions to drive improved results in North America - Management emphasized innovation in product categories and a focus on brand relevance to return to growth in North America [41][44] Question: Marketplace cleanup for HEYDUDE - Management confirmed ongoing cleanup actions in Q4, primarily through discount support, with expectations for improved sell-through [50][51] Question: Consumer spending behavior in Q4 - Management noted a cautious consumer environment, particularly among lower-income groups, impacting spending habits [60][62] Question: Store growth strategy for both brands - Management reported a pickup in store openings, particularly in Europe, with a focus on outlet stores [118][120]

Crocs (CROX) came out with quarterly earnings of $2.92 per share, beating the Zacks Consensus Estimate of $2.39 per share. This compares to earnings of $3.6 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +22.18%. A quarter ago, it was expected that this footwear company would post earnings of $4.01 per share when it actually produced earnings of $4.23, delivering a surprise of +5.49%.Over the last four quarters, the company h ...

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Q3 2025 Investor Presentation Forward Looking Statement This presentation 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 include, but are not limited to, statements rega ...

Crocs reported lower third-quarter profit and sales as demand for its namesake brand continues to fall from prior years. ...

Exhibit 99.1 Investor Contact: Erinn Murphy, Crocs, Inc. (303) 848-7005 emurphy@crocs.com PR Contact: Melissa Layton, Crocs, Inc. (303) 848-7885 mlayton@crocs.com Crocs, Inc. Reports Third Quarter 2025 Results BROOMFIELD, COLORADO — October 30, 2025 — Crocs, Inc. (NASDAQ: CROX), a world leader in innovative casual footwear for all, today announced its third quarter 2025 financial results. "Our third-quarter performance was driven by disciplined execution against our brand strategies, as well as greater prod ...

Core Insights - Crocs, Inc. reported its third-quarter 2025 financial results, highlighting a disciplined execution of brand strategies and product innovation, which led to strong profitability and cash flow [2][10] - The company repurchased 2.4 million shares and paid down $63 million of debt during the quarter, emphasizing its value creation model [2][10] - Crocs anticipates $50 million in gross cost savings for 2025 and has identified an additional $100 million in cost savings for 2026 [3] Financial Performance - Consolidated revenues for Q3 2025 were $996 million, a decrease of 6.2% year-over-year, with a 6.8% decline on a constant currency basis [11] - Direct-to-consumer (DTC) revenues grew by 1.6%, while wholesale revenues decreased by 14.7% [11] - Gross margin declined by 110 basis points to 58.5%, and selling, general, and administrative expenses increased by 3.3% to $375 million, representing 37.7% of revenues [11] Brand Performance - Crocs Brand revenues decreased by 2.5% to $836 million, with DTC revenues increasing by 2.0% and wholesale revenues decreasing by 7.9% [11] - International revenues for the Crocs Brand increased by 5.8%, while North America revenues decreased by 8.8% [11] - HEYDUDE Brand revenues decreased by 21.6%, with DTC revenues down by 0.5% and wholesale revenues down by 38.6% [11] Balance Sheet and Cash Flow - Cash and cash equivalents were $154 million, down from $186 million, while inventories increased to $397 million from $367 million [11] - Total borrowings decreased to $1,318 million from $1,422 million [11] - Capital expenditures for the full year 2025 are expected to be between $70 million and $75 million [6] Future Outlook - For Q4 2025, revenues are expected to decline approximately 8% compared to Q4 2024, with the Crocs Brand projected to decrease by about 3% and HEYDUDE Brand expected to decline by mid-20% [11] - Adjusted diluted earnings per share are anticipated to be in the range of $1.82 to $1.92 [11]

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