Core Insights - Crocs, Inc. (CROX) reported strong second-quarter 2025 results, with revenues in line with estimates and earnings per share (EPS) exceeding expectations, showing year-over-year growth in both metrics [1][4] Financial Performance - Consolidated revenues increased by 3.4% to $1,149 million, matching the Zacks Consensus Estimate, with a constant-currency revenue growth of 2.7% year over year [5] - Direct-to-consumer (DTC) revenues rose by 4%, while wholesale revenues increased by 2.8%, with constant-currency DTC revenues up by 3.4% and wholesale revenues by 2% [5] - The Crocs brand's revenues grew by 5% year over year to $960 million, surpassing the Zacks Consensus Estimate of $957 million, driven by a 3.4% increase in DTC revenues and a 6.8% rise in wholesale revenues [6] - The HEYDUDE brand's revenues fell by 3.9% year over year to $190 million, impacted by a 12.4% decline in wholesale revenues, although DTC revenues increased by 7.6% [7] Profitability Metrics - Adjusted gross profit rose by 3.9% year over year to $708.8 million, with an adjusted gross margin expanding by 30 basis points to 61.7% [8] - Adjusted operating income decreased by 5% year over year to $309 million, with the adjusted operating margin contracting by 240 basis points to 26.9% [8] Cash Flow and Debt Management - At the end of Q2 2025, the company had cash and cash equivalents of $201 million, long-term borrowings of $1.38 billion, and stockholders' equity of $1.42 billion [9] - The company repaid $105 million of debt during the quarter and repurchased 1.3 million shares for $133 million, with $1.1 billion of share repurchase authorization remaining [9] Future Outlook - For Q3 2025, the company anticipates a revenue decline of approximately 9% to 11% year over year, with adjusted operating margins projected between 18% to 19%, reflecting a negative impact from tariffs [10][11]

Core Viewpoint - Crocs stock (NASDAQ:CROX) has experienced a significant decline of 30% due to disappointing guidance and order reductions for the remainder of the year, indicating a deteriorating fundamental outlook [2][7] Financial Performance - The company has seen a drastic drop in revenue growth from nearly 20% in recent years to just 3% in the last quarter, signaling a fundamental shift [4][5] - Operating margins have decreased sharply from an average of 26% over four years to only 6% currently, reflecting a troubling trend in profitability [4] - Earnings per share have declined from $15.88 last year to $13.35 in the last twelve months, with projections for 2025 at $11.32 [4] Market Sentiment - The stock is currently trading at 7x forward adjusted earnings, which may appear attractive but could indicate anticipated further challenges rather than a bargain [3][10] - Historical data shows that Crocs tends to decline more severely than the market during turbulent times, suggesting that the current selling pressure may not be over [7][10] Management Actions - The management's decision to reduce orders indicates a clear concern about demand, which could further impact revenue and growth prospects [5][7] - There is speculation that management might be proactively positioning the company for better comparisons in the future, despite current challenges [10] Brand and Market Position - Despite financial difficulties, Crocs maintains strong brand loyalty and a dedicated customer base, which may help in recovering once economic conditions improve [10] - The footwear market is subject to unpredictable fashion trends, and Crocs' reliance on these trends could pose additional risks [5] Economic Context - Economic instability tends to affect discretionary spending, which could further challenge Crocs as consumers prioritize essential purchases over non-essential items like footwear [5][7] - If consumer sentiment shifts positively, Crocs could benefit disproportionately from increased spending on discretionary items [10]

Core Viewpoint - Crocs plans to reduce orders for the second half of the year due to a concerning consumer environment, leading to a significant drop in stock value and a weaker-than-expected financial forecast [1][3]. Group 1: Consumer Behavior and Market Environment - The U.S. consumer is exhibiting cautious behavior regarding discretionary spending, influenced by current and anticipated price increases, which may further impact consumer choices [2]. - Retail partners are responding to this environment by reducing their open-to-buy dollars for future seasons [2]. Group 2: Financial Performance and Forecast - Crocs reported a net loss of $492.3 million, or $8.82 per share, for the second quarter, compared to a net income of $228.9 million, or $3.77 per share, in the same period last year, primarily due to a $737 million non-cash impairment charge related to its Heydude brand [7]. - Revenue for the second quarter was $1.15 billion, reflecting a 3.4% increase year-over-year and aligning with LSEG estimates [8]. - The company expects third-quarter revenue to decline between 9% to 11% year-over-year, with an adjusted operating margin forecasted at around 18% to 19%, down from 25.4% in the same quarter last year [6]. Group 3: Strategic Actions and Cost Management - To protect profitability, Crocs is reducing promotional activities and taking back older inventory to reset retail partners with new stock [4]. - The company has implemented $50 million in cost savings, which, while impacting short-term topline performance, is aimed at driving margin dollars and supporting long-term cash flow generation [5].

除宏观消费环境影响外，Crocs还面临"丑鞋"潮流退烧的挑战。Rees承认消费者品味变化，运动鞋履风潮再起，2026年足球世界杯、2028年洛杉矶奥运会等 大型体育赛事可能更利好传统运动品牌，公司将面临更激烈竞争。 财务方面，截至6月30日的第二季度，Crocs净亏损4.923亿美元，主要因对以25亿美元收购的HEYDUDE品牌计提超7亿美元减记。尽管当季营收同比增长 3.4%至11亿美元，符合预期，但巨额亏损暴露业务整合与价值评估难题。 此外，关税政策带来压力。公司首席财务官Susan Healy透露，基于当前采购地点，关税预计2025年下半年冲击约4000万美元，年度影响达9000万美元。公 司正减少折扣力度以应对成本上升，此举或进一步抑制销量。 这一情况也折射出美国消费市场寒意，麦当劳本周称较贫穷美国顾客减少快餐消费，奢侈品牌拉夫劳伦亦表示对"不确定、潜在通胀的环境"保持谨慎。（陈 十一） 【环球网财经综合报道】"洞洞鞋"制造商Crocs因业绩指引远逊预期及对美国消费疲软的评估，股价遭遇重挫。周四收盘时，公司股价暴跌29.2%，触及近三 年低点，为2011年10月以来最大单日跌幅。 | Nundang ...

Core Viewpoint - Crocs is facing significant challenges due to a disappointing earnings outlook and a pessimistic assessment of U.S. consumer spending, leading to a sharp decline in stock price and a decrease in customer traffic [1][2][3] Group 1: Earnings Outlook and Stock Performance - After releasing a disappointing earnings forecast, Crocs' stock plummeted by 29.2%, reaching its lowest point in nearly three years, marking the heaviest single-day loss since October 2011 [2] - The company warned that third-quarter revenue is expected to decline by 9% to 11% year-over-year, contrasting with analysts' expectations of slight growth [2] Group 2: Consumer Behavior and Market Trends - Crocs' CEO Andrew Rees noted that U.S. consumers are being very cautious with non-essential spending, leading to a decline in store traffic [5] - The management indicated that the impact will be most severe in wholesale and outlet channels, which cater to lower-income consumers [5] - The broader consumer market is experiencing a downturn, with reports indicating that lower-income customers are cutting back on fast food consumption to save money [6] Group 3: Fashion Trends and Competition - The "ugly shoe" trend that previously boosted Crocs' growth is reportedly cooling off, with a resurgence of athletic footwear styles [7] - Rees acknowledged that consumer tastes are changing, and upcoming major sporting events may favor traditional athletic brands like Nike and Adidas, increasing competition for Crocs [8] Group 4: Financial Challenges and Tariff Impacts - Crocs reported a net loss of $492.3 million for the second quarter, primarily due to over $700 million in impairment related to the $2.5 billion acquisition of the casual shoe brand HEYDUDE [9][10] - Despite a 3.4% year-over-year revenue growth to $1.1 billion, the significant loss highlights challenges in business integration and value assessment [10] - Tariff policies are expected to impact the company significantly, with projected costs of approximately $40 million in the second half of 2025 and up to $90 million annually [11]

Core Viewpoint - Crocs is facing a significant decline in consumer interest and macroeconomic challenges, leading to a sharp drop in stock price and disappointing revenue forecasts [1][2]. Group 1: Financial Performance - Crocs' stock price fell by 29.2%, reaching its lowest point in nearly three years after a disappointing earnings outlook [1]. - The company expects third-quarter revenue to decline by 9% to 11% year-over-year, contrary to analyst expectations of slight growth [1]. - In the second quarter ending June 30, Crocs reported a net loss of $492.3 million, primarily due to over $700 million in impairment related to the $2.5 billion acquisition of HEYDUDE [7][8]. Group 2: Consumer Behavior - CEO Andrew Rees noted that American consumers are being very cautious with discretionary spending, leading to decreased foot traffic in stores [2]. - The tightening of consumer wallets is particularly affecting low-income groups, which are more sensitive to price changes [4]. Group 3: Market Trends - The "ugly shoe" trend that previously boosted Crocs' growth may be waning, with a resurgence of interest in athletic footwear [5][6]. - Upcoming major sporting events, such as the 2026 World Cup and the 2028 Los Angeles Olympics, are expected to favor traditional sports brands like Nike and Adidas, increasing competition for Crocs [6]. Group 4: Regulatory and Cost Pressures - Tariff policies are projected to impact Crocs significantly, with an estimated $40 million hit in the second half of 2025 and an annual impact of up to $90 million [9]. - In response to rising costs, the company is reducing discounting, which may further suppress sales [9].

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 June 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 _________________________________________________________ ...

Group 1 - The core point of the article is that Crocs Inc. (CROX.US) experienced a significant stock drop of over 28.5%, reaching a new low since January of the previous year, due to a forecasted decline in Q3 revenue [1] - For Q2, Crocs reported revenue of $1.15 billion, a year-over-year increase of 3.6%, surpassing analyst expectations of $1.14 billion [1] - The adjusted earnings per share for the second quarter were $4.23, which is higher than the $4.01 reported in the same period last year and above the analyst forecast of $4.00 [1] Group 2 - The company anticipates a revenue decline of approximately 9% to 11% for Q3, contrasting with analyst expectations of a 0.3% growth [1] - The adjusted operating margin is projected to be around 18% to 19%, which includes an expected negative impact of approximately 170 basis points from announced and pending tariffs [1]

Shares of Crocs have returned +0.4% over the past month versus the Zacks S&P 500 composite's +1.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Here is how Crocs performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: View all Key Company Metrics for Crocs here>>> The reported revenue represents a surprise of +0.83% over the Zacks Consensus Estimat ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...