Crocs Raises 2026 Revenue Outlook as HEYDUDE Returns to Growth

Crocs Inc. (NASDAQ: CROX) raised its full-year 2026 revenue outlook after third-quarter sales increased across both brands, with international demand driving record third-quarter revenue for the Crocs brand and HEYDUDE returning to growth. The footwear company now expects annual revenue to rise approximately 3%, marking its third consecutive full-year guidance increase.

Revenue for the quarter ended September 30 rose 4.6% to $1.04 billion from $996.3 million a year earlier, both as reported and on a constant-currency basis. Adjusted operating income increased 12% to $232.0 million, while adjusted operating margin expanded 150 basis points to 22.3%.

Adjusted diluted earnings per share rose 26% to $3.69. On a GAAP basis, net income increased to $216.8 million, or $4.52 per diluted share, from $145.8 million, or $2.70 per share, in the prior-year quarter.

Adjusted gross margin expanded 180 basis points to 60.3%, although adjusted selling, general and administrative expenses rose 40 basis points as a share of revenue to 38.1%. GAAP gross margin reached 66.2%, reflecting $64.1 million of nonrecurring tariff refunds resulting from a February 2026 U.S. Supreme Court ruling. Crocs excluded those refunds and other specified items from its adjusted results.

International Growth Leads Crocs Brand

Crocs brand revenue increased 4.4% to $872.7 million, or 4% on the presentation’s rounded constant-currency basis. International revenue rose 12% to $434.4 million, supported by a 24% increase in international direct-to-consumer sales and growth across China, India, Japan, South Korea and Western Europe.

North American Crocs revenue declined 2% to $438.4 million. Across regions, direct-to-consumer revenue grew 8% to $510.4 million, while wholesale revenue was approximately flat at $362.4 million.

The brand’s adjusted gross margin increased 160 basis points to 63.4%. Crocs said growth was supported by continued clog innovation, expansion beyond clogs and double-digit growth in sandals. Its Lifestyle products included the Ballet Flat and Mellow closed-heel styles, while the Miami and Saturday franchises led sandal performance.

HEYDUDE Returns to Quarterly Growth

HEYDUDE revenue rose 6.1% to $169.9 million, marking a return to growth that management had identified as a key 2026 objective. Wholesale revenue increased 14% to $79.1 million as partners placed larger orders and expanded their commitments to the brand. Direct-to-consumer revenue was slightly higher at $90.8 million.

The company attributed HEYDUDE’s performance to improved average selling prices, inventory management and cost efficiencies. Core products such as Stretch Sox and Jersey were supplemented by demand for the Braided Wally and HEY20. Crocs also said sandals performed above its expectations, while work footwear, boots and slippers presented additional opportunities for the fourth quarter and 2027.

HEYDUDE’s adjusted gross margin rose 350 basis points to 45.8%. The brand’s GAAP gross margin was 55.1%, compared with 42.3% a year earlier, with the 2026 figure also benefiting from tariff refunds.

Full-Year Outlook Raised

For 2026, Crocs expects consolidated revenue growth of approximately 3%. Crocs brand revenue is projected to increase about 4%, while HEYDUDE revenue is expected to be approximately flat for the year.

The company forecasts a full-year adjusted operating margin above 22.5% and adjusted diluted earnings of $14.45 to $14.65 per share. Its GAAP diluted EPS outlook is $14.71 to $14.91. The adjusted effective tax rate is expected to be 18%, and capital expenditures are projected at $70 million to $80 million.

For the fourth quarter, management expects total revenue to rise 7% to 9%, including growth of 6% to 8% for the Crocs brand and 10% to 12% for HEYDUDE. Adjusted operating margin is forecast at approximately 20.5%, with adjusted diluted EPS of $3.25 to $3.45.

Crocs generated $275.5 million of free cash flow in the third quarter, up from $226.2 million a year earlier. It repurchased $250 million of shares during the period while also reducing debt. The company said its capital-allocation priorities remain investment in its brands, opportunistic repurchases under approximately $1.7 billion of available authorization, and maintaining net leverage within a target range of 1.0 to 1.5 times.

The outlook reflects currency rates as of October 26, 2026. Crocs cautioned that its projections remain subject to risks and uncertainties described in its regulatory filings, and that special or noncore items affecting forward-looking adjusted measures can be difficult to predict precisely.