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Sep 30
Crocs Q3 2025 Earnings Report
Crocs reported a decline in revenue and earnings for Q3 2025 but maintained strong profitability and cash flow.
Key Takeaways
Crocs, Inc. delivered lower revenue and net income in Q3 2025, mainly due to declines in wholesale performance across both Crocs and HEYDUDE brands. However, the company showed strength in direct-to-consumer channels and international markets, and used strong cash flow to repurchase shares and reduce debt.
Revenue declined 6.2% year-over-year to $996.3 million.
Adjusted EPS was $2.92, down from $3.60 last year.
Net income came in at $145.8 million with a 20.8% operating margin.
Crocs repurchased 2.4 million shares for $203 million and repaid $63 million in debt.
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 expects Q4 2025 revenue to decline by 8% YoY, with pressure on HEYDUDE offsetting relative stability in Crocs Brand. Operating margins and adjusted EPS are forecasted to remain solid.
Positive Outlook
- Adjusted EPS expected between $1.82 and $1.92.
- Adjusted operating margin forecasted at 15.5%.
- Crocs Brand revenue expected to be down only ~3%.
- Cost savings initiatives expected to deliver $50M in 2025.
- Additional $100M of gross cost savings identified for 2026.
Challenges Ahead
- Total revenue expected to decline ~8% YoY in Q4.
- HEYDUDE Brand revenue projected to decline by mid-20%.
- Wholesale segment remains under pressure.
- Gross margin slightly down YoY.
- Macroeconomic and channel softness affecting demand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income