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Crocs Lifts 2026 Profit Outlook After Q1 Beat, Warns of Softer Q2

HEYDUDE’s sharp drop alongside weak wholesale set a cautious near-term tone.

Overview

  • Crocs, which reported results Thursday, delivered adjusted EPS of $2.99 on $921.5 million in revenue, beating estimates even as sales fell 1.7% from a year ago.
  • Results split by brand and channel, with the Crocs label up 0.8% to $767 million as direct-to-consumer grew, while HEYDUDE fell 12.3% on weaker wholesale.
  • Profitability tightened as adjusted gross margin slipped about 90 basis points to 56.9% and adjusted operating income declined to $206 million.
  • For 2026, management raised adjusted EPS guidance to $13.20 to $13.75 and now expects revenue to range from down 1% to up 1% versus last year.
  • The company guided cautiously for the second quarter, projecting core-brand growth of 1% to 3% and a 12% to 14% drop at HEYDUDE, with revenue below $1.149 billion, a stance that pressured the stock after the release.