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Jun 30
Crocs Q2 2025 Earnings Report
Crocs reported solid second quarter 2025 results, driven by contributions from both its Crocs and HEYDUDE brands, achieving the highest ever gross profit quarter in company history.
Key Takeaways
Crocs, Inc. delivered a solid second quarter in 2025, with total revenues increasing by 3.4% to $1.149 billion. Despite a net loss of $492.282 million due to significant impairment charges, the company achieved a record gross profit of $708.836 million. Strong cash flow generation allowed for $133 million in share repurchases and $105 million in debt paydown, demonstrating effective capital management amidst a challenging operating environment.
Total revenues increased by 3.4% year-over-year to $1.149 billion in Q2 2025.
The company reported a net loss of $492.282 million, primarily due to $737 million in non-cash impairment charges related to the HEYDUDE brand.
Gross profit reached a record high of $708.836 million, with a GAAP gross margin of 61.7%.
Crocs generated strong cash flow, enabling $133 million in share repurchases and $105 million in debt reduction.
Crocs
Crocs
Crocs Revenue by Segment
Crocs Revenue by Geographic Location
Revenue by Segment
Crocs Brand Revenue
CapyFin.comHEYDUDE Brand Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Crocs is providing guidance only for the third quarter of 2025 due to continued uncertainty from evolving global trade policy and consumer pressures. The company is focusing on expense management, inventory reduction, and pulling back on promotional activity to protect brand health, which may impact short-term topline results but is expected to position the business for long-term success and continued cash flow generation.
Positive Outlook
- Focus on managing expenses, including $50 million in already implemented cost savings.
- Reducing inventory receipts to optimize stock levels.
- Pulling back on promotional activity to protect brand health in the marketplace.
- Actions are expected to position the business to win and drive margin dollars longer term.
- Support for continued cash flow generation in the long term.
Challenges Ahead
- Continued uncertainty from evolving global trade policy.
- Related pressures around the consumer.
- Actions taken to manage expenses and inventory will impact the topline of the business in the short term.
- Only providing third-quarter guidance due to the uncertain operating environment.
- Inability to reconcile forward-looking adjusted measures to GAAP due to unpredictable timing of adjustments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income