Crocs shares slide as weak outlook draws focus from earnings beat

Crocs, Inc. (NASDAQ:CROX) shares fell astir 10% connected Thursday aft the footwear institution issued a weaker-than-expected 3rd 4th outlook, arsenic tariff pressures and continued weakness astatine its HEYDUDE marque weighed connected sentiment, contempt a second-quarter net and gross beat.

The institution forecast Q3 adjusted net per stock of $3.20 to $3.30 connected astir level revenue, beneath Wall Street expectations for adjusted EPS of astir $3.53 to $3.55 and gross of astir $1 billion. Crocs attributed the outlook to ongoing tariff impacts and merchandise premix pressures.

For the 2nd 4th of 2026, Crocs reported adjusted net per stock of $4.55, supra expert estimates of $4.32 to $4.35.

Revenue came successful astatine $1.18 billion, topping expectations of $1.15 cardinal and rising 2.6% from the anterior year.

The company's halfway Crocs marque surpassed $1 cardinal successful quarterly gross for the archetypal time, with income expanding 4.3% twelvemonth implicit twelvemonth to $1 billion. Direct-to-consumer gross for the marque roseate 12.9%, portion wholesale gross declined 5%.

HEYDUDE continued to look challenges, with quarterly gross falling 5.7% to $179 million. Direct-to-consumer income accrued 7.2%, but wholesale gross declined 17.2%.

Overall gross borderline declined to 59.4% from 61.7% a twelvemonth earlier, portion adjusted gross borderline fell 170 ground points to 60% arsenic tariff-related costs affected profitability. Adjusted operating income declined 4.5% to $296 million, with adjusted operating borderline narrowing to 25.1% from 26.9%.

Crocs raised its full-year 2026 outlook, present expecting gross maturation of astir 1% to 2%, compared with its erstwhile forecast of down 1% to up 1%. Adjusted diluted net per stock guidance was accrued to a scope of $13.70 to $14, up from the anterior scope of $13.20 to $13.75.

"Our results bespeak wide user request crossed some brands, steadfast direct-to-consumer growth, and beardown user effect to caller merchandise innovation," Crocs CEO Andrew Rees said successful a statement.  

The institution besides announced that its committee accrued its stock repurchase authorization by $1.5 billion, leaving astir $2 cardinal disposable for aboriginal buybacks. During the quarter, Crocs repurchased astir 2.3 cardinal shares for $251 million.