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Crocs Beats Q2 Estimates but Issues Weak Q3 Outlook, Shares Slide

Tariff-driven cost pressure has prompted a cautious near-term profit forecast.

Overview

  • Crocs reported Q2 fiscal 2026 revenue of $1.179 billion and net income of $204.9 million, or $4.55 per diluted share, topping analyst estimates.
  • The Crocs brand reached more than $1 billion in quarterly revenue for the first time while HEYDUDE sales fell about 5.7% to $179 million, showing uneven brand momentum.
  • Gross margin and adjusted operating income narrowed year over year as the company cited higher tariff-related costs and product-mix shifts that hurt profitability.
  • For Q3 the company guided to roughly flat revenue and adjusted EPS of $3.20 to $3.30, a forecast that missed Street expectations and sent the stock down around 10–13% on Thursday.
  • Management raised full-year revenue and EPS guidance, expanded buyback authorization by $1.5 billion and repurchased about 2.3 million shares for $251 million to deploy cash and support shareholders.