Crocs, Inc. Reports Fourth Quarter and Full-Year 2025 Results; Issues First Quarter and Full-Year 2026 Outlook

• Full-Year 2025 Results Outperform Expectations on Revenue and Earnings Per Share
• Strong Cash Flow Enabled Repurchase of 6.5 Million Shares for $577 Million in 2025
• Expects to Deliver Earnings Per Share Growth in Full-Year 2026

BROOMFIELD, Colo., Feb. 12, 2026 /PRNewswire/ -- Crocs, Inc. (NASDAQ:CROX), a world leader in innovative casual footwear for all, today announced its fourth quarter and full-year 2025 financial results.

"We ended 2025 on a strong note with a better-than-expected Holiday quarter. For the year, revenue exceeded $4 billion, led by low-double digit international growth for the Crocs Brand. At the same time, we accelerated our strategic actions to strengthen the long-term health of both the Crocs and HEYDUDE brands. Our powerful value creation model drove operating cash flow of approximately $700 million which enabled us to return shareholder value as we repurchased approximately 10% of our shares outstanding, and paid down $128 million of debt," said Andrew Rees, Chief Executive Officer.

Mr. Rees continued, "We enter 2026 with greater confidence around our growth engines which are diversified across channels, geographies, brands, and product categories. We have identified and actioned $100 million of cost savings in 2026 aimed at driving greater efficiency while providing the flexibility to continue to invest behind our brands and deepen our connection with consumers."

Amounts referred to as "Adjusted" or "Non-GAAP" are Non-GAAP measures and include adjustments that are described under the heading "Reconciliation of GAAP Measures to Non-GAAP Measures." A reconciliation of these amounts to their GAAP counterparts is contained in the schedules below.

Fourth Quarter 2025 Operating Results (Compared to the Same Period Last Year)

• Consolidated revenues were $958 million, a decrease of 3.2%, or 4.2% on a constant currency basis. Direct-to-consumer ("DTC") revenues grew 4.7%, or 3.6% on a constant currency basis. Wholesale revenues decreased 14.5%, or 15.5% on a constant currency basis.
• Gross margin was 54.7% compared to 57.9%. Adjusted gross margin decreased 320 basis points to 54.7% compared to 57.9%.
• Selling, general, and administrative expenses ("SG&A") of $377 million increased 1.1% from $373 million, and represented 39.4% of revenues compared to 37.7%. Adjusted SG&A of $363 million decreased 2.7% from $373 million, and represented 37.9% of revenues compared to 37.7%.
• Income from operations of $146 million decreased 26.8% from $200 million, resulting in operating margin of 15.3% compared to 20.2%. Adjusted income from operations of $161 million decreased 19.7% from $200 million, resulting in adjusted operating margin of 16.8% compared to 20.2%.
• Diluted earnings per share of $2.03 decreased 68.1% from diluted earnings per share of $6.36. Adjusted diluted earnings per share of $2.29 decreased 9.1% from $2.52.
• During the quarter, we repurchased approximately 2.2 million shares for $180 million at an average share price of $83.63. We repaid $90 million of debt.

2025 Operating Results (Compared to Last Year)

• Consolidated revenues were $4,041 million, a decrease of 1.5%, or 1.7% on a constant currency basis. DTC revenues grew 3.3%, or 2.9% on a constant currency basis. Wholesale revenues decreased 6.2%, or 6.2% on a constant currency basis.
• Gross margin was 58.3% compared to 58.8%. Adjusted gross margin decreased 50 basis points to 58.3% compared to 58.8%.
• SG&A of $2,208 million increased 59.0% from $1,388 million, and represented 54.6% of revenues compared to 33.8%. The increase in SG&A is largely driven by non-cash impairment charges related to the indefinite-lived HEYDUDE trademark and HEYDUDE Brand reporting unit goodwill of $430 million and $307 million, respectively, during the three months ended June 30, 2025. Adjusted SG&A of $1,456 million increased 6.8% from $1,363 million, and represented 36.0% of revenues compared to 33.2%.
• Income from operations of $150 million decreased 85.4% from $1,022 million, resulting in operating margin of 3.7% compared to 24.9%. The decline is driven by asset impairments, as described above. Adjusted income from operations of $901 million decreased 14.2% from $1,050 million, resulting in adjusted operating margin of 22.3% compared to 25.6%.
• Diluted loss per share of $1.50 decreased 109.4% from diluted earnings per share of $15.88. The loss per share is driven by asset impairments, as described above. Adjusted diluted earnings per share of $12.51 decreased 5.0% from $13.17, which excludes non-GAAP adjustments.
• During the year, we repaid $128 million of debt. We repurchased approximately 6.5 million shares for $577 million at an average share price of $88.68, and at year-end, $747 million of share repurchase authorization remained available for future repurchases.

Fourth Quarter 2025 Brand Summary (Compared to the Same Period Last Year)

• Crocs Brand: Revenues increased 0.8% to $768 million, or decreased 0.4% on a constant currency basis.
  • Channel
    • DTC revenues increased 6.1% to $475 million, or 4.8% on a constant currency basis.
    • Wholesale revenues decreased 6.7% to $294 million, or 7.7% on a constant currency basis.
  • Geography
    • North America revenues decreased 7.4% to $436 million.
    • International revenues increased 14.1% to $332 million, or 11.0% on a constant currency basis.
• HEYDUDE Brand: Revenues decreased 16.9% to $189 million, or 17.5% on a constant currency basis.
  • Channel
    • DTC revenues were flat at $133 million.
    • Wholesale revenues decreased 40.5% to $56 million, or 41.7% on a constant currency basis.

2025 Brand Summary (Compared to the Last Year)

• Crocs Brand: Revenues increased 1.5% to $3,326 million, or 1.3% on a constant currency basis.
  •  Channel
    • DTC revenues increased 3.4% to $1,726 million, or 2.9% on a constant currency basis.
    • Wholesale revenues decreased 0.5% to $1,599 million, or 0.5% on a constant currency basis.
  • Geography
    • North America revenues decreased 6.8% to $1,710 million, or 6.7% on a constant currency basis.
    • International revenues increased 11.9% to $1,616 million, or 11.2% on a constant currency basis.
• HEYDUDE Brand: Revenues decreased 13.3% to $715 million, or 13.5% on a constant currency basis.
  • Channel
    • DTC revenues increased 2.9% to $379 million, or 2.8% on a constant currency basis.
    • Wholesale revenues decreased 26.3% to $336 million, or 26.5% on a constant currency basis.

Balance Sheet and Cash Flow (December 31, 2025 as compared to December 31, 2024)

• Cash and cash equivalents were $130 million compared to $180 million.
• Inventories were $369 million compared to $356 million.
• Total borrowings were $1,231 million compared to $1,349 million.
• Capital expenditures were $51 million compared to $69 million.

Financial Outlook

First Quarter 2026

For the first quarter of 2026, we expect:

• Revenues to be down approximately 5.5% to 3.5% to the first quarter of 2025, at currency rates as of February 9, 2026.
  • Crocs Brand to be down approximately low-single-digits to the first quarter of 2025.
  • HEYDUDE Brand to be down approximately 18% to 15% to the first quarter of 2025.
• Adjusted operating margin to be approximately 21.5%.
• Adjusted diluted earnings per share to be in the range of $2.67 to $2.77.

Full-Year 2026

For 2026, we expect:

• Revenues to be down approximately 1% to up slightly compared to full-year 2025, at currency rates as of February 9, 2026.
  • Crocs Brand to be approximately flat to up 2% compared to full-year 2025.
  • HEYDUDE Brand to be down approximately 9% to 7% compared to full-year 2025.
• Non-GAAP adjustments to be approximately $25 million primarily associated with supply chain optimization and other cost savings efficiencies.
• Adjusted operating margin to expand modestly from 22.3%.
• GAAP effective tax rate to be approximately 23% and adjusted effective tax rate to be approximately 18%.
• Adjusted diluted earnings per share to be in the range of $12.88 to $13.35. Adjusted diluted earnings per share guidance does not assume any impact from potential future share repurchases.
• Capital expenditures of $70 million to $80 million.

Conference Call Information

A conference call to discuss fourth quarter and full-year results is scheduled for today, Thursday, February 12, 2026, at 8:30 am ET. To receive conference call details, please register at the Investor Relations section of the Crocs website, investors.crocs.com. The webcast will also be available live and on replay through February 12, 2027, at this site.

About Crocs, Inc.: 

Crocs, Inc. (NASDAQ:CROX), headquartered in Broomfield, Colorado, is a world leader in innovative casual footwear for all, combining comfort and style with a value that consumers know and love. The Company's brands include Crocs and HEYDUDE, and its products are sold in more than 85 countries through wholesale and direct-to-consumer channels. For more information on Crocs, Inc. visit investors.crocs.com. To learn more about our brands, visit www.crocs.com or www.heydude.com. Individuals can also visit https://investors.crocs.com/news-and-events/ and follow both Crocs and HEYDUDE on their social platforms.

Forward Looking Statements

This press release 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 regarding our financial condition, brand and liquidity outlook, and expectations regarding our future financial results, share repurchases, our strategy, plans, objectives, expectations (financial or otherwise) and intentions, future financial results and growth potential, statements regarding future financial outlook and future profitability, cash flows, and brand strength, anticipated product portfolio and our ability to deliver sustained, highly profitable growth and create significant shareholder value. These statements involve known and unknown risks, uncertainties, and other factors, which may cause our actual results, performance, or achievements to be materially different from any future results, performances, or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include the factors described in our most recent Annual Report on Form 10-K under the heading "Risk Factors" and our subsequent filings with the Securities and Exchange Commission. Readers are encouraged to review that section and all other disclosures appearing in our filings with the Securities and Exchange Commission.

All information in this document speaks only as of February 12, 2026. We do not undertake any obligation to update publicly any forward-looking statements, whether as a result of the receipt of new information, future events, or otherwise, except as required by applicable law.

Category:Investors

 

 

 

CROCS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

In addition to financial measures presented on the basis of accounting principles generally accepted in the United States of America ("GAAP"), we present "Non-GAAP gross profit," "Non-GAAP gross margin," "Non-GAAP gross margin by brand," "Non-GAAP selling, general, and administrative expenses," "Non-GAAP selling, general and administrative expenses as a percent of revenues," "Non-GAAP income from operations," "Non-GAAP operating margin," "Non-GAAP income before income taxes," "Non-GAAP income tax expense," "Non-GAAP effective tax rate," "Non-GAAP net income," and "Non-GAAP basic and diluted net income per common share," which are non-GAAP financial measures. We also present future period guidance for "Non-GAAP operating margin," "Non-GAAP effective tax rate," "Non-GAAP diluted earnings per share," and "Free cash flow." We also present a long-term target for 'Net leverage.' Non-GAAP results exclude the impact of items that management believes affect the comparability or underlying business trends in our condensed consolidated financial statements in the periods presented.

We also present certain information related to our current period results of operations through "constant currency," which is a non-GAAP financial measure and should be viewed as a supplement to our results of operations and presentation of reportable segments under GAAP. Constant currency represents current period results that have been retranslated using exchange rates used in the prior year comparative period to enhance the visibility of the underlying business trends excluding the impact of foreign currency exchange rate fluctuations.

Management uses non-GAAP results to assist in comparing business trends from period to period on a consistent basis in communications with the board of directors, stockholders, analysts, and investors concerning our financial performance. We believe that these non-GAAP measures, in addition to corresponding GAAP measures, are useful to investors and other users of our condensed consolidated financial statements as an additional tool for evaluating operating performance and trends by providing meaningful information about operations compared to our peers by excluding the impacts of various differences. The calculation of our non-GAAP financial metrics may vary from company to company. As a result, our calculation of these metrics may not be comparable to similarly titled metrics used by other companies.

Management believes Non-GAAP gross profit, Non-GAAP gross margin, and Non-GAAP gross margin by brand are useful performance measures for investors because they provide investors with a means of comparing these measures between periods without the impact of certain expenses that we believe are not indicative of our routine cost of sales. Our routine cost of sales includes core product costs and distribution expenses primarily related to receiving, inspecting, warehousing, and packaging product and transportation costs associated with delivering products from distribution centers. Costs not indicative of our routine cost of sales may or may not be recurring in nature and include costs to expand and transition to new distribution centers.

Management believes Non-GAAP selling, general and administrative expenses and Non-GAAP selling, general and administrative expenses as a percent of revenues are useful performance measures for investors because they provide a more meaningful comparison to prior periods and may be indicative of the level of such expenses to be incurred in future periods. These measures exclude the impact of certain expenses not related to our normal operations that are expected to be non-recurring in nature, such as impairment charges.

Non-GAAP income from operations and Non-GAAP operating margin reflect the impact of Non-GAAP gross profit and Non-GAAP selling, general, and administrative expenses, as discussed above. We believe these are useful performance measures for investors because they provide a basis to compare performance in the period to prior periods.

Non-GAAP income before income taxes reflects the impact of Non-GAAP income from operations, as discussed above. We believe this is a useful performance measure for investors because it provides a basis to compare performance in the period to prior periods.

Management believes Non-GAAP income tax expense is a useful performance measure for investors because it provides a basis to compare our tax rates to historical tax rates, and because the adjustment is necessary in order to calculate Non-GAAP net income.

Management believes Non-GAAP effective tax rate is a useful performance measure for investors because it provides an ongoing effective tax rate that they can use for historical comparisons and forecasting.

Management believes Non-GAAP net income is a useful performance measure for investors because it focuses on underlying operating results and trends and improves the comparability of our results to prior periods. This measure reflects the impact of Non-GAAP gross profit, Non-GAAP selling, general, and administrative expenses, and Non-GAAP income tax expense, as described above.

Management believes Non-GAAP basic and diluted net income per common share are useful performance measures for investors because they focus on underlying operating results and trends and improve the comparability of our results to prior periods. These measures reflect the impact of Non-GAAP gross profit, Non-GAAP selling, general, and administrative expenses, and Non-GAAP income tax expense, as described above.

Management believes Net leverage is a useful performance measure for investors because it provides a measure of our financial strength and liquidity.

Free cash flow is calculated as 'Cash provided by operating activities' less 'Purchases of property, equipment, and software.' Management believes free cash flow is useful for investors because it provides a clear measure of our ability to generate cash for discretionary uses such as funding growth opportunities, repurchasing shares, and reducing debt.

For the three and twelve months ended December 31, 2025, management believes it is helpful to evaluate our results excluding the impacts of various adjustments relating to special or non-recurring items. Investors should not consider these non-GAAP measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

 

 

 

 

 

 

Non-GAAP Financial Guidance

Our forward-looking guidance for consolidated "adjusted operating margin" and "adjusted diluted earnings per share" represents non-GAAP financial measures that excludes or otherwise has been adjusted for special items from our U.S. GAAP financial statements. We consider these items to be necessary adjustments for purposes of evaluating our ongoing business performance and are often considered non-recurring. Such adjustments are subjective and involve significant management judgment.

While we are able to estimate full-year non-GAAP adjustments, we are unable to reconcile forward-looking adjusted measures to their nearest U.S. GAAP measure quarter-by-quarter because we are unable to predict the timing of these adjustments with a reasonable degree of certainty. By their very nature, special and other non-core items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our company and its financial results. Therefore, we are unable to provide a reconciliation of these measures for the guidance related to the first quarter of 2026 without unreasonable efforts.

 

 

 

 

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SOURCE Crocs, Inc.