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Crocs raises outlook on ‘better than expected’ Q1

Crocs has raised its top and bottom line outlook for the year after announcing “better-than-expected” results for the first quarter.

Crocs CEO Andrew Rees said the results were fuelled by “broad consumer relevance for both of brands and disciplined execution against [Crocs’] strategy.”

“We are encouraged by strong consumer response to product newness across categories, supported by our high pace of innovation and consistent brand storytelling," said Rees.

For the three months ending 31 March:

Revenues slid to $921.5m from $937.3m with Crocs reporting lower gross profit and increased expenses.
Operating income fell to $201m from $223m.
Net income decreased to $138m from $160m.

By brand, Crocs revenues increased 0.8% to $767m, or decreased 1.9% on a constant currency basis, with increases in direct to consumer (DTC) but declines in wholesale revenues.

North America revenues decreased 6.1% to $346 million, or 6.4% on a constant currency basis. International revenues increased 7.2% to $421m, or 2.3% on a constant currency basis.

HeyDUDE brand saw revenues decrease 12.3% to $154 million, or 13.2% on a constant currency basis with increases in DTC but declines in wholesale.

Crocs 2026 Outlook

"We are focused on executing against our initiatives to drive diversified growth across both brands, channels, and markets, and we remain confident in the long-term health of the business," added Rees.

For Q2 Crocs expects:

Revenues to be down slightly compared to Q2 2025.
Crocs Brand to be up approximately 1% to 3% compared to the second quarter of 2025; HEYDUDE Brand to be down approximately 14% to 12% compared to the second quarter of 2025.
Adjusted operating margin to be approximately 24.7%.
Adjusted diluted earnings per share to be in the range of $4.15 to $4.35.

For FY 2026 Crocs expects:

Revenues to be down approximately 1% to up 1% compared to full year 2025.
Crocs Brand to be flat to up approximately 2% compared to full year 2025; HEYDUDE Brand to be down approximately 7% to 5% compared to full year 2025, up from our previous guidance of down 9% to 7%.
Adjusted diluted earnings per share to be in the range of $13.20 to $13.75, up from previous guidance range of $12.88 to $13.35.
Capital expenditures of $70 million to $80 million.