Crocs(US:CROX) ZACKSยท2025-08-08 18:16Core 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]