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Crocs Q1 Earnings Beat Estimates on DTC Growth, View Raised
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Key Takeaways
CROX posted Q1 revenues of $921.5M and adjusted EPS of $2.99, both beating estimates.
Crocs DTC revenues rose 12.1% y/y, while wholesale fell 9.9%, pushing a mixed top line.
CROX raised its 2026 adjusted EPS view to $13.20-$13.75 and sees Q2 EPS $4.15-$4.35.
Crocs, Inc. (CROX - Free Report) has reported better-than-expected first-quarter 2026 results, wherein earnings and revenues beat the Zacks Consensus Estimate. However, both metrics decreased year over year.
Adjusted earnings were $2.99 per share, beating the consensus mark of $2.78 by 7.6% and edging down 0.3% year over year.
In the past six months, the Zacks Rank #4 (Sell) shares have gained 20.3% against the industry’s 0.4% decline.
CROX Stock's Price Performance
Image Source: Zacks Investment Research
Insight Into CROX’s Q1 Performance
Consolidated revenues of $921.5 million surpassed the consensus estimate of $905 million by 1.8% and decreased 1.7% from the prior-year period. On a constant-currency basis, revenues fell 4% year over year. Direct-to-consumer (DTC) revenues jumped 12.1%, but wholesale revenues declined 9.9%. On a constant-currency basis, DTC revenues inched up 10.2%, while wholesale revenues dropped 12.5% year over year.
The Crocs brand’s revenues inched up 0.8% year over year to $767.4 million, including a 6.5% decrease in wholesale revenues, offset by a 12.9% rise in DTC revenues. On a constant-currency basis, revenues for the Crocs brand fell 1.9%, with a 10.6% rise in the DTC business and a 9.4% decline in wholesale. Revenues for the Crocs brand surpassed the Zacks Consensus Estimate of $757 million.
The HEYDUDE brand’s revenues dropped 12.3% year over year to $154 million. The decline was led by a steep pullback in wholesale, wherein revenues fell 24.7% to $83million. DTC for HEYDUDE provided a partial offset, increasing 8.6% to $71 million. On a constant-currency basis, revenues for the HEYDUDE brand declined 13.2%, with a 26% decrease in wholesale business and 8.4% growth in DTC revenues. Revenues for the HEYDUDE brand beat the Zacks Consensus Estimate of $149 million.
The adjusted gross profit dipped 3.2% year over year to $524.4 million. The adjusted gross margin contracted 90 basis points (bps) to 56.9%. Adjusted selling, general and administrative expenses, as a percentage of revenues, jumped 60 bps to 34.6%. Adjusted operating income fell 7.8% year over year to $205.7 million. The adjusted operating margin contracted 150 bps to 22.3% from the year-ago quarter.
Financial Details of Crocs
CROX ended the first quarter of 2026 with cash and cash equivalents of $130.9 million, long-term borrowings of $1.34 billion, and stockholders’ equity of $1.43 billion. It incurred a capital expenditure of $18 million as of March 31, 2026.
In the first quarter 2026, the company repurchased 0.8 million shares for $73.6 million. It had $673.2 million in share repurchase authorization available for repurchases.
CROX’s 2026 Outlook
For the second quarter of 2026, management expects revenues to fall slightly year over year at currency rates as of April. 27, 2026, with the Crocs brand up 1-3% and HEYDUDE down 14-12% from the second-quarter 2025 actuals. The adjusted operating margin is projected at 24.7% and adjusted earnings are expected to be $4.15-$4.35 per share.
For 2026, the company has raised its view for adjusted earnings to $13.20-$13.75 per share up from our prior guidance range of $12.88-$13.35. CROX reiterated revenue expectations of a 1% dip to a 1% year-over-year rise at currency rates as of April 27, 2026. Crocs also expects non-GAAP adjustments of $25 million and a capital expenditure of $70-$80 million.
Crocs revenues are likely to be flat to up 2% from that reported in 2025. HEYDUDE is likely to fall 7-5% from that reported in 2025. The adjusted operating margin is forecast to expand modestly from 22.3%, while the adjusted effective tax rate is likely to be 18%.
Stocks to Consider
Vince Holding Corp. (VNCE - Free Report) provides luxury apparel and accessories in the United States and internationally. It operates through Vince Wholesale and Vince Direct-to-Consumer segments. At present, the company flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VNCE’s current fiscal-year sales implies growth of 4.5%, and the same for earnings suggests a decline of 15.9% from the year-ago reported figures. VNCE has delivered a trailing four-quarter earnings surprise of 647.2%, on average.
Under Armour, Inc. (UAA - Free Report) together with its subsidiaries, engages in developing, marketing and distributing performance apparel, footwear and accessories for men, women and youth. At present, Under Armour sports a Zacks Rank of 1.
The Zacks Consensus Estimate for Under Armour’s current fiscal-year sales and earnings implies declines of 3.8% and 64.5%, respectively, from the year-ago reported figures. UAA has delivered a trailing four-quarter earnings surprise of 140.3%, on average.
Kontoor Brands, Inc. (KTB - Free Report) is a lifestyle apparel company that designs, manufactures, procures, sells and licenses apparel, footwear and accessories primarily under the Wrangler, Lee and Helly Hansen brands. At present, KTB carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for KTB’s current fiscal-year sales and earnings implies growth of 9.2% and 15.6%, respectively, from the year-ago reported figures. KTB delivered a trailing four-quarter earnings surprise of 13.9%, on average.
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Crocs Q1 Earnings Beat Estimates on DTC Growth, View Raised
Key Takeaways
Crocs, Inc. (CROX - Free Report) has reported better-than-expected first-quarter 2026 results, wherein earnings and revenues beat the Zacks Consensus Estimate. However, both metrics decreased year over year.
Adjusted earnings were $2.99 per share, beating the consensus mark of $2.78 by 7.6% and edging down 0.3% year over year.
Crocs, Inc. Price, Consensus and EPS Surprise
Crocs, Inc. price-consensus-eps-surprise-chart | Crocs, Inc. Quote
In the past six months, the Zacks Rank #4 (Sell) shares have gained 20.3% against the industry’s 0.4% decline.
CROX Stock's Price Performance
Image Source: Zacks Investment Research
Insight Into CROX’s Q1 Performance
Consolidated revenues of $921.5 million surpassed the consensus estimate of $905 million by 1.8% and decreased 1.7% from the prior-year period. On a constant-currency basis, revenues fell 4% year over year. Direct-to-consumer (DTC) revenues jumped 12.1%, but wholesale revenues declined 9.9%. On a constant-currency basis, DTC revenues inched up 10.2%, while wholesale revenues dropped 12.5% year over year.
The Crocs brand’s revenues inched up 0.8% year over year to $767.4 million, including a 6.5% decrease in wholesale revenues, offset by a 12.9% rise in DTC revenues. On a constant-currency basis, revenues for the Crocs brand fell 1.9%, with a 10.6% rise in the DTC business and a 9.4% decline in wholesale. Revenues for the Crocs brand surpassed the Zacks Consensus Estimate of $757 million.
The HEYDUDE brand’s revenues dropped 12.3% year over year to $154 million. The decline was led by a steep pullback in wholesale, wherein revenues fell 24.7% to $83million. DTC for HEYDUDE provided a partial offset, increasing 8.6% to $71 million. On a constant-currency basis, revenues for the HEYDUDE brand declined 13.2%, with a 26% decrease in wholesale business and 8.4% growth in DTC revenues. Revenues for the HEYDUDE brand beat the Zacks Consensus Estimate of $149 million.
The adjusted gross profit dipped 3.2% year over year to $524.4 million. The adjusted gross margin contracted 90 basis points (bps) to 56.9%. Adjusted selling, general and administrative expenses, as a percentage of revenues, jumped 60 bps to 34.6%. Adjusted operating income fell 7.8% year over year to $205.7 million. The adjusted operating margin contracted 150 bps to 22.3% from the year-ago quarter.
Financial Details of Crocs
CROX ended the first quarter of 2026 with cash and cash equivalents of $130.9 million, long-term borrowings of $1.34 billion, and stockholders’ equity of $1.43 billion. It incurred a capital expenditure of $18 million as of March 31, 2026.
In the first quarter 2026, the company repurchased 0.8 million shares for $73.6 million. It had $673.2 million in share repurchase authorization available for repurchases.
CROX’s 2026 Outlook
For the second quarter of 2026, management expects revenues to fall slightly year over year at currency rates as of April. 27, 2026, with the Crocs brand up 1-3% and HEYDUDE down 14-12% from the second-quarter 2025 actuals. The adjusted operating margin is projected at 24.7% and adjusted earnings are expected to be $4.15-$4.35 per share.
For 2026, the company has raised its view for adjusted earnings to $13.20-$13.75 per share up from our prior guidance range of $12.88-$13.35. CROX reiterated revenue expectations of a 1% dip to a 1% year-over-year rise at currency rates as of April 27, 2026. Crocs also expects non-GAAP adjustments of $25 million and a capital expenditure of $70-$80 million.
Crocs revenues are likely to be flat to up 2% from that reported in 2025. HEYDUDE is likely to fall 7-5% from that reported in 2025. The adjusted operating margin is forecast to expand modestly from 22.3%, while the adjusted effective tax rate is likely to be 18%.
Stocks to Consider
Vince Holding Corp. (VNCE - Free Report) provides luxury apparel and accessories in the United States and internationally. It operates through Vince Wholesale and Vince Direct-to-Consumer segments. At present, the company flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VNCE’s current fiscal-year sales implies growth of 4.5%, and the same for earnings suggests a decline of 15.9% from the year-ago reported figures. VNCE has delivered a trailing four-quarter earnings surprise of 647.2%, on average.
Under Armour, Inc. (UAA - Free Report) together with its subsidiaries, engages in developing, marketing and distributing performance apparel, footwear and accessories for men, women and youth. At present, Under Armour sports a Zacks Rank of 1.
The Zacks Consensus Estimate for Under Armour’s current fiscal-year sales and earnings implies declines of 3.8% and 64.5%, respectively, from the year-ago reported figures. UAA has delivered a trailing four-quarter earnings surprise of 140.3%, on average.
Kontoor Brands, Inc. (KTB - Free Report) is a lifestyle apparel company that designs, manufactures, procures, sells and licenses apparel, footwear and accessories primarily under the Wrangler, Lee and Helly Hansen brands. At present, KTB carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for KTB’s current fiscal-year sales and earnings implies growth of 9.2% and 15.6%, respectively, from the year-ago reported figures. KTB delivered a trailing four-quarter earnings surprise of 13.9%, on average.