Crocs(US:CROX)2025-10-30 11:03Financial Performance - Consolidated revenues for Q3 2025 were $996 million, a decrease of 6.2% year-over-year, with direct-to-consumer revenues growing 1.6%[6] - Income from operations decreased by 23.0% to $208 million, resulting in an operating margin of 20.8%[6] - Diluted earnings per share were $2.70, down 19.6% from $3.36 in the previous year[6] - The Crocs brand revenues decreased by 2.5% to $836 million, while HEYDUDE brand revenues decreased by 21.6% to $160 million[10] - For Q4 2025, revenues are expected to decline approximately 8% compared to Q4 2024, with Crocs brand down approximately 3% and HEYDUDE brand down mid-20%[10] - For the nine months ended September 30, 2025, the company reported a net loss of $186.4 million compared to a net income of $581.2 million in the same period of 2024[21] - GAAP revenues for the nine months ended September 30, 2025, were $3.08 billion, slightly down from $3.11 billion in 2024, indicating a decrease of about 0.9%[37] - Non-GAAP gross profit for the nine months ended September 30, 2025, was $1.83 billion, compared to $1.84 billion in 2024, reflecting a decrease of approximately 0.1%[37] - The company's GAAP operating margin for the nine months ended September 30, 2025, was 0.1%, significantly lower than 26.4% in 2024[40] - Non-GAAP operating margin for the nine months ended September 30, 2025, was 24.0%, down from 27.3% in 2024[40] - Total revenues for Q3 2025 were $996,301, a decline of 6.2% compared to $1,062,200 in Q3 2024[48] - Total HEYDUDE Brand revenues decreased by 21.6% year-over-year to $160,072 in Q3 2025[48] Cash Flow and Financial Position - Cash and cash equivalents were $154 million, down from $186 million year-over-year[10] - Cash provided by operating activities for the nine months ended September 30, 2025, was $457.9 million, down from $670.5 million in 2024, representing a decrease of approximately 31.5%[21] - The company reported cash used in financing activities of $444.4 million for the nine months ended September 30, 2025, compared to $583.7 million in 2024, a decrease of approximately 23.9%[21] - The company’s cash, cash equivalents, and restricted cash at the end of the period was $157.5 million, down from $189.5 million at the end of September 2024[21] - Free cash flow for the nine months ended September 30, 2025, was $412,781, down from $619,692 in the same period of 2024, representing a decrease of 33.4%[43] Cost Management and Savings - The company has identified an additional $100 million in gross cost savings for 2026, on top of the $50 million expected in 2025[3] - The company incurred asset impairment charges of $738.1 million for the nine months ended September 30, 2025, compared to $24.1 million in 2024[21] - The company’s non-GAAP selling, general, and administrative expenses for the nine months ended September 30, 2025, were $1.09 billion, up from $990.2 million in 2024, indicating an increase of approximately 10.1%[39] Earnings Guidance - Adjusted diluted earnings per share guidance for Q4 2025 is projected to be in the range of $1.82 to $1.92[10] - The company expects a non-GAAP diluted earnings per share of $1.82 to $1.92 for Q4 2025, with GAAP diluted earnings per share projected at $1.58 to $1.68[45] - The company anticipates incurring approximately $10 million in non-GAAP adjustments in Q4 2025, primarily related to cost reduction initiatives[45] Tax and Effective Rates - The non-GAAP effective tax rate for Q3 2025 was 16.9%, compared to 12.6% in Q3 2024[41] - The GAAP effective income tax rate for Q3 2025 was 23.0%, up from 18.4% in Q3 2024[41]