Crocs beat earnings expectations as HeyDude returned to sales growth

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The footwear maker raised its full-year adjusted earnings outlook to $14.45-$14.65 a share, up from $13.70-$14.00

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Crocs reported third-quarter revenue of $1.04 billion, up 4.6% from a year earlier, and raised its full-year outlook as its HEYDUDE brand returned to growth.

HEYDUDE revenue rose 6.1% to $170 million, ending six straight declines, according to Bloomberg. The company's sales and earnings also topped Wall Street expectations, according to Bloomberg.

Crocs stock rallied as high as 26% during trading Thursday. That was the stock's largest jump during a trading session since 2020, according to Bloomberg.

Revenue for the namesake Crocs brand increased 4.4% to $873 million. International revenue grew 11.8%, while North America revenue fell 2.1%. At HEYDUDE, wholesale revenue climbed 14.0% and direct-to-consumer revenue edged up 0.1%.

Adjusted diluted earnings per share were $3.69, up 26.4% from $2.92 a year earlier. Diluted earnings per share under generally accepted accounting principles were $4.52, up 67.4%. Those results included $64.1 million in tariff refunds that the company excluded from its adjusted figures.

"HEYDUDE revenues grew 6%, marking an important milestone as we delivered on our commitment stated earlier in the year to return the brand to growth," CEO Andrew Rees said in a statement.

HEYDUDE's gains came from working down the stock that had piled up at retailers, moving more products without markdowns and expanding its network of company-run stores, according to Bloomberg. Rees told analysts on a call Thursday: "The work we did over the past 12 months to clean up the marketplace, focus on our core consumer and sharpen our marketing created short-term pressure, but is now translating into a broader-based growth opportunity," according to Bloomberg.

For 2026, Crocs now expects revenue to rise about 3%, up from prior guidance of 1% to 2%. It expects HEYDUDE revenue to be about flat, compared with prior guidance of a decline of 2% to 4%. Adjusted diluted earnings per share are projected at $14.45 to $14.65.

For the fourth quarter, the company expects revenue to rise 7% to 9%, with HEYDUDE up 10% to 12%. It expects adjusted diluted earnings per share of $3.25 to $3.45.

In July, Crocs issued third-quarter guidance that missed analyst expectations. It projected roughly flat revenue and adjusted earnings of $3.20 to $3.30 a share. Crocs stock fell 11% that day, and HEYDUDE revenue had declined 5.7% in the second quarter.

During the third quarter, Crocs repurchased about 2.0 million shares for $250 million and repaid $21 million of debt. About $1.7 billion of repurchase authorization remained at quarter-end.

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