Crocs, Inc. Reports Better-Than-Expected First Quarter 2026 Results And Raises Full-Year Outlook
Rhea-AI Summary
Crocs (NASDAQ: CROX) reported first quarter 2026 results with consolidated revenue of $921 million and raised its full‑year outlook. Direct‑to‑consumer revenue grew 12.1% while overall revenue fell 1.7% (down 4.0% constant currency). The company raised 2026 adjusted EPS guidance to $13.20–$13.75 and expects modest adjusted operating margin expansion.
Cash was $131 million; subsequent repurchases totaled $73.6 million with $673.2 million remaining authorization.
AI-generated analysis. Not financial advice.
Positive
- DTC revenue growth of 12.1% year-over-year
- Raised full‑year adjusted EPS guidance to $13.20–$13.75
- Full‑year revenue outlook tightened to down 1% to up 1%
- Repurchased $73.6 million of stock; $673.2 million authorization remains
- Q2 adjusted diluted EPS guidance of $4.15–$4.35
Negative
- HEYDUDE revenue declined 12.3% year-over-year
- HEYDUDE wholesale sales fell 24.7% year-over-year
News Market Reaction – CROX
On the day this news was published, CROX gained 1.84%, reflecting a mild positive market reaction. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $91M to the company's valuation, bringing the market cap to $5.01B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
CROX fell 2.32% with peers also generally lower (e.g., DECK -3.89%, BIRK -3.08%), but no names appeared on the momentum scanner, indicating pressure skewed to company-specific positioning rather than a strong sector-wide rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 30 | Quarterly earnings | Negative | -2.5% | Q3 2025 revenues and EPS declined with weaker wholesale performance. |
| Aug 07 | Quarterly earnings | Negative | -29.2% | Q2 2025 saw record revenue but large HEYDUDE impairment driving loss. |
| May 08 | Quarterly earnings | Positive | +9.8% | Q1 2025 beat expectations with higher EPS and strong Crocs brand growth. |
| Oct 29 | Quarterly earnings | Positive | -19.2% | Q3 2024 beat with EPS growth and raised outlook but HEYDUDE weakness. |
| Aug 01 | Quarterly earnings | Positive | -2.6% | Record Q2 2024 revenue and raised EPS outlook, HEYDUDE still declining. |
Earnings events have been volatile, with an average next-day move of -8.76%. Positive earnings and outlook updates have sometimes been followed by share price declines, indicating a pattern of market skepticism or profit-taking around results.
Recent earnings history for Crocs shows mixed fundamental trends but consistently sharp stock reactions. Q2 2025 and Q3 2024 featured revenue growth and raised or reiterated guidance, yet shares fell sharply (-29.24% and -19.17%). Earlier, Q1 2025 “better‑than‑expected” results produced a +9.82% move. Across these five earnings events, the average move of -8.76% underscores how even solid reports often met with selling pressure.
Historical Comparison
In the last five earnings releases, CROX averaged a -8.76% next‑day move, with several strong reports still followed by selling, highlighting event‑driven volatility.
Earnings updates consistently show Crocs Brand growing while HEYDUDE lags, with management frequently adjusting full‑year outlooks as brand trends and impairment impacts evolve.
Market Pulse Summary
This announcement highlights Q1 2026 results with $921 million in revenue, strong direct‑to‑consumer growth, and a modest decline in overall sales and margins. HEYDUDE revenue fell 12.3% while the Crocs Brand grew slightly, underscoring ongoing brand divergence. Management raised full‑year adjusted EPS guidance to $13.20–$13.75, but prior earnings releases have produced volatile reactions, so investors may monitor brand mix, margin trends, and execution on revised outlooks.
Key Terms
non-gaap financial
constant currency financial
direct-to-consumer financial
gross margin financial
operating margin financial
capital expenditures financial
basis points financial
AI-generated analysis. Not financial advice.
- First Quarter Outperformance Supported By Broad Consumer Relevance Across Both Brands
- Crocs And HEYDUDE Brand Performance Led By Healthy Direct-To-Consumer Channel Growth
- Full-Year Outlook Raised On Both The Top- And Bottom-Line
"We are pleased to have started the year with better-than-expected results, fueled by broad consumer relevance for both of our brands and disciplined execution against our strategy. We delivered enterprise revenue of over
Mr. Rees continued, "Based on our first quarter performance, we are raising our full-year outlook on both the top- and bottom-line. We are focused on executing against our initiatives to drive diversified growth across both brands, channels, and markets, and we remain confident in the long-term health of the business."
Amounts referred to as "Adjusted" or "Non-GAAP" are Non-GAAP measures and include adjustments that are described under the heading "Reconciliation of GAAP Measures to Non-GAAP Measures." A reconciliation of these amounts to their GAAP counterparts is contained in the schedules below.
First Quarter 2026 Operating Results (Compared to the Same Period Last Year)
- Consolidated revenues were
$921 million 1.7% , or4.0% on a constant currency basis. Direct-to-consumer ("DTC") revenues grew12.1% , or10.2% on a constant currency basis. Wholesale revenues decreased9.9% , or12.5% on a constant currency basis. - Gross margin was
56.8% compared to57.8% . Adjusted gross margin decreased 90 basis points to56.9% compared to57.8% . - Selling, general, and administrative expenses ("SG&A") of
$322 million 1.1% from$319 million 35.0% of revenues compared to34.0% . Adjusted SG&A remained approximately flat at$319 million 34.6% of revenues compared to34.0% . - Income from operations of
$201 million 9.9% from$223 million 21.8% compared to23.8% . Adjusted income from operations of$206 million 7.8% from$223 million 22.3% compared to23.8% . - Diluted earnings per share of
$2.71 4.2% from diluted earnings per share of$2.83 $2.99 0.3% from$3.00
Balance Sheet and Cash Flow (March 31, 2026, as compared to March 31, 2025)
- Cash and cash equivalents were
$131 million $166 million - Inventories were
$398 million $391 million - Total borrowings were
$1.34 billion $1.48 billion - Capital expenditures were
$18 million compared to$15 million .
Share Repurchase Activity
Subsequent to March 31, 2026 and through April 23, 2026, we repurchased 0.8 million shares of our common stock for
First Quarter 2026 Brand Summary (Compared to the Same Period Last Year)
- Crocs Brand: Revenues increased
0.8% to$767 million 1.9% on a constant currency basis.- Channel
- DTC revenues increased
12.9% to$322 million 10.6% on a constant currency basis.
- Wholesale revenues decreased
6.5% to$446 million 9.4% on a constant currency basis.
- DTC revenues increased
- Geography
North America revenues decreased6.1% to$346 million 6.4% on a constant currency basis.
- International revenues increased
7.2% to$421 million 2.3% on a constant currency basis.
- Channel
- HEYDUDE Brand: Revenues decreased
12.3% to$154 million 13.2% on a constant currency basis.- Channel
- DTC revenues increased
8.6% to$71 million 8.4% on a constant currency basis.
- Wholesale revenues decreased
24.7% to$83 million 26.0% on a constant currency basis.
- DTC revenues increased
- Channel
Financial Outlook
Second Quarter 2026
For the second quarter of 2026, we expect:
- Revenues to be down slightly compared to the second quarter of 2025, at currency rates as of April 27, 2026.
- Crocs Brand to be up approximately
1% to3% compared to the second quarter of 2025.
- HEYDUDE Brand to be down approximately
14% to12% compared to the second quarter of 2025.
- Crocs Brand to be up approximately
- Adjusted operating margin to be approximately
24.7% . - Adjusted diluted earnings per share to be in the range of
$4.15 $4.35
Full Year 2026
For 2026, we expect:
- Revenues to be down approximately
1% to up1% compared to full year 2025, up from our previous guidance of down1% to up slightly, at currency rates as of April 27, 2026.- Crocs Brand to be flat to up approximately
2% compared to full year 2025.
- HEYDUDE Brand to be down approximately
7% to5% compared to full year 2025, up from our previous guidance of down9% to7% .
- Crocs Brand to be flat to up approximately
- Non-GAAP adjustments to be approximately
$25 million - Adjusted operating margin to expand modestly from
22.3% . - GAAP effective tax rate to be approximately
23% and adjusted effective tax rate to be approximately18% . - Adjusted diluted earnings per share to be in the range of
$13.20 $13.75 $12.88 $13.35 - Capital expenditures of
$70 million $80 million
Conference Call Information
A conference call to discuss first quarter results is scheduled for today, Thursday, April 30, 2026, at 8:30 am ET. To receive conference call details, please register at the Investor Relations section of the Crocs website, investors.crocs.com. The webcast will also be available live and on replay through April 30, 2027, at this site.
About Crocs, Inc.:
Crocs, Inc. (Nasdaq: CROX), headquartered in
Forward Looking Statements
This press release includes estimates, projections, and statements relating to our business plans, commitments, objectives, and expected operating results that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
These statements include, but are not limited to, statements regarding our financial condition, brand and liquidity outlook, and expectations regarding our future financial results, share repurchases, our strategy, plans, objectives, expectations (financial or otherwise) and intentions, future financial results and growth potential, statements regarding future financial outlook and future profitability, cash flows, and brand strength, anticipated product portfolio and our ability to deliver sustained, highly profitable growth and create significant shareholder value. These statements involve known and unknown risks, uncertainties, and other factors, which may cause our actual results, performance, or achievements to be materially different from any future results, performances, or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include the factors described in our most recent Annual Report on Form 10-K under the heading "Risk Factors" and our subsequent filings with the Securities and Exchange Commission. Readers are encouraged to review that section and all other disclosures appearing in our filings with the Securities and Exchange Commission.
All information in this document speaks only as of April 30, 2026. We do not undertake any obligation to update publicly any forward-looking statements, whether as a result of the receipt of new information, future events, or otherwise, except as required by applicable law.
Category:Investors
CROCS, INC. AND SUBSIDIARIES | ||||
Three Months Ended March 31, | ||||
2026 | 2025 | |||
Revenues | $ 921,457 | $ 937,333 | ||
Cost of sales | 398,512 | 395,784 | ||
Gross profit | 522,945 | 541,549 | ||
Selling, general and administrative expenses | 322,101 | 318,575 | ||
Income from operations | 200,844 | 222,974 | ||
Foreign currency gains (losses), net | (1,625) | 4,873 | ||
Interest income | 335 | 333 | ||
Interest expense | (20,459) | (22,766) | ||
Other expense, net | (251) | (475) | ||
Income before income taxes | 178,844 | 204,939 | ||
Income tax expense | 41,288 | 44,836 | ||
Net income | $ 137,556 | $ 160,103 | ||
Net income per common share: | ||||
Basic | $ 2.74 | $ 2.85 | ||
Diluted | $ 2.71 | $ 2.83 | ||
Weighted average common shares outstanding: | ||||
Basic | 50,282 | 56,110 | ||
Diluted | 50,707 | 56,502 | ||
CROCS, INC. AND SUBSIDIARIES | ||||
March 31, | December 31, | |||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ 130,881 | $ 130,354 | ||
Accounts receivable, net of allowances of | 442,320 | 278,191 | ||
Inventories | 397,557 | 368,687 | ||
Income taxes receivable | 2,443 | 32,782 | ||
Other receivables | 25,315 | 22,082 | ||
Prepaid expenses and other assets | 66,687 | 53,787 | ||
Total current assets | 1,065,203 | 885,883 | ||
Property and equipment, net of accumulated depreciation of | 236,874 | 238,191 | ||
Intangible assets, net of accumulated amortization of | 1,320,658 | 1,324,680 | ||
Goodwill | 404,662 | 404,689 | ||
Deferred tax assets, net | 920,050 | 935,054 | ||
Restricted cash | 3,467 | 3,557 | ||
Right-of-use assets | 345,137 | 338,669 | ||
Other assets | 47,363 | 44,027 | ||
Total assets | $ 4,343,414 | $ 4,174,750 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current liabilities: | ||||
Accounts payable | $ 242,474 | $ 266,090 | ||
Accrued expenses and other liabilities | 259,430 | 300,959 | ||
Income taxes payable | 43,764 | 47,308 | ||
Current borrowings | 5,550 | — | ||
Current operating lease liabilities | 88,298 | 85,772 | ||
Total current liabilities | 639,516 | 700,129 | ||
Deferred tax liabilities, net | 902 | 882 | ||
Long-term income taxes payable | 640,521 | 649,057 | ||
Long-term borrowings | 1,330,271 | 1,230,885 | ||
Long-term operating lease liabilities | 301,325 | 297,192 | ||
Other liabilities | 3,489 | 3,322 | ||
Total liabilities | 2,916,024 | 2,881,467 | ||
Commitments and contingencies | ||||
Stockholders' equity: | ||||
Common stock, par value | 111 | 111 | ||
Treasury stock, at cost, 60.5 million and 60.5 million shares, respectively | (3,042,686) | (3,040,416) | ||
Additional paid-in capital | 907,212 | 896,605 | ||
Retained earnings | 3,618,194 | 3,480,638 | ||
Accumulated other comprehensive loss | (55,441) | (43,655) | ||
Total stockholders' equity | 1,427,390 | 1,293,283 | ||
Total liabilities and stockholders' equity | $ 4,343,414 | $ 4,174,750 | ||
CROCS, INC. AND SUBSIDIARIES | ||||
Three Months Ended March 31, | ||||
2026 | 2025 | |||
Cash flows from operating activities: | ||||
Net income | $ 137,556 | $ 160,103 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 20,240 | 18,537 | ||
Operating lease cost | 28,053 | 24,186 | ||
Share-based compensation | 10,607 | 8,777 | ||
Asset impairments | 3,301 | — | ||
Deferred taxes | 954 | 13,589 | ||
Other non-cash items | 4,568 | (355) | ||
Changes in operating assets and liabilities, net of acquired assets and assumed | ||||
Accounts receivable | (165,459) | (183,607) | ||
Inventories | (30,959) | (36,633) | ||
Prepaid expenses and other assets | (20,246) | 3,516 | ||
Accounts payable, accrued expenses and other liabilities | (64,574) | (71,094) | ||
Right-of-use assets and operating lease liabilities | (27,786) | (23,901) | ||
Income taxes | 22,811 | 19,647 | ||
Cash used in operating activities | (80,934) | (67,235) | ||
Cash flows from investing activities: | ||||
Purchases of property, equipment, and software | (18,000) | (15,375) | ||
Cash used in investing activities | (18,000) | (15,375) | ||
Cash flows from financing activities: | ||||
Proceeds from borrowings | 178,550 | 195,000 | ||
Repayments of borrowings | (76,000) | (65,000) | ||
Repurchases of common stock | — | (60,866) | ||
Repurchases of common stock for tax withholding | (2,455) | (3,310) | ||
Cash provided by financing activities | 100,095 | 65,824 | ||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (724) | 2,845 | ||
Net change in cash, cash equivalents, and restricted cash | 437 | (13,941) | ||
Cash, cash equivalents, and restricted cash—beginning of period | 133,911 | 183,678 | ||
Cash, cash equivalents, and restricted cash—end of period | $ 134,348 | $ 169,737 | ||
CROCS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
In addition to financial measures presented on the basis of accounting principles generally accepted in
We also present certain information related to our current period results of operations through "constant currency," which is a non-GAAP financial measure and should be viewed as a supplement to our results of operations and presentation of reportable segments under GAAP. Constant currency represents current period results that have been retranslated using exchange rates used in the prior year comparative period to enhance the visibility of the underlying business trends excluding the impact of foreign currency exchange rate fluctuations.
Management uses non-GAAP results to assist in comparing business trends from period to period on a consistent basis in communications with the board of directors, stockholders, analysts, and investors concerning our financial performance. We believe that these non-GAAP measures, in addition to corresponding GAAP measures, are useful to investors and other users of our condensed consolidated financial statements as an additional tool for evaluating operating performance and trends by providing meaningful information about operations compared to our peers by excluding the impacts of various differences. The calculation of our non-GAAP financial metrics may vary from company to company. As a result, our calculation of these metrics may not be comparable to similarly titled metrics used by other companies.
Management believes Non-GAAP gross profit, Non-GAAP gross margin, and Non-GAAP gross margin by brand are useful performance measures for investors because they provide investors with a means of comparing these measures between periods without the impact of certain expenses that we believe are not indicative of our routine cost of sales. Our routine cost of sales includes core product costs and distribution expenses primarily related to receiving, inspecting, warehousing, and packaging product and transportation costs associated with delivering products from distribution centers. Costs not indicative of our routine cost of sales may or may not be recurring in nature and include costs to expand and transition to new distribution centers.
Management believes Non-GAAP selling, general and administrative expenses and Non-GAAP selling, general and administrative expenses as a percent of revenues are useful performance measures for investors because they provide a more meaningful comparison to prior periods and may be indicative of the level of such expenses to be incurred in future periods. These measures exclude the impact of certain expenses not related to our normal operations that are expected to be non-recurring in nature, such as impairment charges.
Non-GAAP income from operations and Non-GAAP operating margin reflect the impact of Non-GAAP gross profit and Non-GAAP selling, general, and administrative expenses, as discussed above. We believe these are useful performance measures for investors because they provide a basis to compare performance in the period to prior periods.
Non-GAAP income before income taxes reflects the impact of Non-GAAP income from operations, as discussed above. We believe this is a useful performance measure for investors because it provides a basis to compare performance in the period to prior periods.
Management believes Non-GAAP income tax expense is a useful performance measure for investors because it provides a basis to compare our tax rates to historical tax rates, and because the adjustment is necessary in order to calculate Non-GAAP net income.
Management believes Non-GAAP effective tax rate is a useful performance measure for investors because it provides an ongoing effective tax rate that they can use for historical comparisons and forecasting.
Management believes Non-GAAP net income is a useful performance measure for investors because it focuses on underlying operating results and trends and improves the comparability of our results to prior periods. This measure reflects the impact of Non-GAAP gross profit, Non-GAAP selling, general, and administrative expenses, and Non-GAAP income tax expense, as described above.
Management believes Non-GAAP basic and diluted net income per common share are useful performance measures for investors because they focus on underlying operating results and trends and improve the comparability of our results to prior periods. These measures reflect the impact of Non-GAAP gross profit, Non-GAAP selling, general, and administrative expenses, and Non-GAAP income tax expense, as described above.
Management believes Net leverage is a useful performance measure for investors because it provides a measure of our financial strength and liquidity.
Free cash flow is calculated as 'Cash provided by operating activities' less 'Purchases of property, equipment, and software.' Management believes free cash flow is useful for investors because it provides a clear measure of our ability to generate cash for discretionary uses such as funding growth opportunities, repurchasing shares, and reducing debt.
For the three months ended March 31, 2026, management believes it is helpful to evaluate our results excluding the impacts of various adjustments relating to special or non-recurring items. Investors should not consider these non-GAAP measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
CROCS, INC. AND SUBSIDIARIES | |||||
Non-GAAP gross profit and gross margin reconciliation: | |||||
Three Months Ended March 31, | |||||
2026 | 2025 | ||||
(in thousands) | |||||
GAAP revenues | $ 921,457 | $ 937,333 | |||
GAAP gross profit | $ 522,945 | $ 541,549 | |||
Distribution centers (1) | 1,377 | — | |||
Other | 70 | — | |||
Total adjustments | 1,447 | — | |||
Non-GAAP gross profit | $ 524,392 | $ 541,549 | |||
GAAP gross margin | 56.8 % | 57.8 % | |||
Non-GAAP gross margin | 56.9 % | 57.8 % | |||
(1) | Relates to the transition away from a third-party logistics provider for the HEYDUDE Brand and software transition costs at our Crocs Brand | ||||
Non-GAAP gross margin reconciliation by brand: | ||||
Crocs Brand: | ||||
Three Months Ended March 31, | ||||
2026 | 2025 | |||
GAAP Crocs Brand gross margin | 59.5 % | 60.7 % | ||
Non-GAAP adjustments: | ||||
Distribution centers (1) | less than | — % | ||
Other | less than | — % | ||
Non-GAAP Crocs Brand gross margin | 59.5 % | 60.7 % | ||
(1) | Represents software transition costs at our distribution center in | |||
HEYDUDE Brand: | ||||
Three Months Ended March 31, | ||||
2026 | 2025 | |||
GAAP HEYDUDE Brand gross margin | 43.9 % | 46.6 % | ||
Non-GAAP adjustments: | ||||
Distribution centers (1) | 0.6 % | — % | ||
Non-GAAP HEYDUDE Brand gross margin | 44.5 % | 46.6 % | ||
(1) | Relates to the transition away from a third-party logistics provider. | |||
Non-GAAP selling, general and administrative reconciliation: | ||||
Three Months Ended March 31, | ||||
2026 | 2025 | |||
(in thousands) | ||||
GAAP revenues | $ 921,457 | $ 937,333 | ||
GAAP selling, general and administrative expenses | $ 322,101 | $ 318,575 | ||
Impairment of leasehold improvement assets (1) | (3,301) | — | ||
Charges incurred in connection with cost savings initiatives | (1,659) | — | ||
Severance costs (2) | 1,570 | — | ||
Total adjustments | (3,390) | — | ||
Non-GAAP selling, general and administrative expenses (3) | $ 318,711 | $ 318,575 | ||
GAAP selling, general and administrative expenses as a percent of revenues | 35.0 % | 34.0 % | ||
Non-GAAP selling, general and administrative expenses as a percent of | 34.6 % | 34.0 % | ||
(1) | Represents impairment charges for certain HEYDUDE leasehold improvement assets. | |||
(2) | Represents a change in estimate in the three months ended March 31, 2026, for severance costs recorded as of December 31, 2025. | |||
(3) | Non-GAAP selling, general and administrative expenses are presented gross of tax. | |||
Non-GAAP income from operations and operating margin reconciliation: | ||||
Three Months Ended March 31, | ||||
2026 | 2025 | |||
(in thousands) | ||||
GAAP revenues | $ 921,457 | $ 937,333 | ||
GAAP income from operations | $ 200,844 | $ 222,974 | ||
Non-GAAP gross profit adjustments (1) | 1,447 | — | ||
Non-GAAP selling, general and administrative expenses adjustments (2) | 3,390 | — | ||
Non-GAAP income from operations | $ 205,681 | $ 222,974 | ||
GAAP operating margin | 21.8 % | 23.8 % | ||
Non-GAAP operating margin | 22.3 % | 23.8 % | ||
(1) | See 'Non-GAAP gross profit and gross margin reconciliation' above for more details. | |||
(2) | See 'Non-GAAP selling, general and administrative expenses and selling, general and administrative expenses as a percent of revenues | |||
Non-GAAP income tax expense (benefit) and effective tax rate reconciliation: | ||||
Three Months Ended March 31, | ||||
2026 | 2025 | |||
(in thousands) | ||||
GAAP income from operations | $ 200,844 | $ 222,974 | ||
GAAP income before income taxes | 178,844 | 204,939 | ||
Non-GAAP income from operations (1) | $ 205,681 | $ 222,974 | ||
GAAP non-operating income (expenses): | ||||
Foreign currency gains (losses), net | (1,625) | 4,873 | ||
Interest income | 335 | 333 | ||
Interest expense | (20,459) | (22,766) | ||
Other income (expense), net | (251) | (475) | ||
Non-GAAP income before income taxes | $ 183,681 | $ 204,939 | ||
GAAP income tax expense | $ 41,288 | $ 44,836 | ||
Tax effect of non-GAAP operating adjustments | 133 | — | ||
Impact of intra-entity IP transactions (2) | (9,179) | (9,572) | ||
Non-GAAP income tax expense | $ 32,242 | $ 35,264 | ||
GAAP effective income tax rate | 23.1 % | 21.9 % | ||
Non-GAAP effective income tax rate | 17.6 % | 17.2 % | ||
(1) | See 'Non-GAAP income from operations and operating margin reconciliation' above for more details. | |||
(2) | In the fourth quarter of 2024, and previously in 2023, 2021, and 2020, we made changes to our international legal structure, including an | |||
Non-GAAP net income per share reconciliation: | ||||
Three Months Ended March 31, | ||||
2026 | 2025 | |||
(in thousands, except per share data) | ||||
Numerator: | ||||
GAAP net income | $ 137,556 | $ 160,103 | ||
Non-GAAP gross profit adjustments (1) | 1,447 | — | ||
Non-GAAP selling, general and administrative expenses adjustments (2) | 3,390 | — | ||
Tax effect of non-GAAP adjustments (3) | 9,046 | 9,572 | ||
Non-GAAP net income | $ 151,439 | $ 169,675 | ||
Denominator: | ||||
GAAP weighted average common shares outstanding - basic | 50,282 | 56,110 | ||
Plus: GAAP dilutive effect of stock options and unvested restricted stock units | 425 | 392 | ||
GAAP weighted average common shares outstanding - diluted | 50,707 | 56,502 | ||
GAAP net income per common share: | ||||
Basic | $ 2.74 | $ 2.85 | ||
Diluted | $ 2.71 | $ 2.83 | ||
Non-GAAP net income per common share: | ||||
Basic | $ 3.01 | $ 3.02 | ||
Diluted | $ 2.99 | $ 3.00 | ||
(1) | See 'Non-GAAP gross profit and gross margin reconciliation' above for more information. | |||
(2) | See 'Non-GAAP selling, general and administrative expenses and selling, general and administrative expenses as a percent of revenues | |||
(3) | See 'Non-GAAP income tax expense (benefit) and effective tax rate reconciliation' above for more information. | |||
Free cash flow reconciliation: | ||||
Three Months Ended March 31, | ||||
2026 | 2025 | |||
(in thousands) | ||||
Cash used in operating activities | $ (80,934) | $ (67,235) | ||
Purchases of property, equipment, and software | (18,000) | (15,375) | ||
Free cash flow | $ (98,934) | $ (82,610) | ||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL GUIDANCE | |||
Full Year 2026: | |||
Approximately: | |||
Non-GAAP operating margin reconciliation: | |||
GAAP operating margin | > | ||
Non-GAAP adjustments (1) | 0.6 % | ||
Non-GAAP operating margin | > | ||
Non-GAAP effective tax rate reconciliation: | |||
GAAP effective tax rate | 23 % | ||
Non-GAAP adjustments (2) | (5) % | ||
Non-GAAP effective tax rate | 18 % | ||
Non-GAAP diluted earnings per share reconciliation: | |||
GAAP diluted earnings per share | |||
Non-GAAP adjustments (1)(2) | |||
Non-GAAP diluted earnings per share | |||
(1) | During 2026, we expect to incur approximately | ||
(2) | In the fourth quarter of 2024, and previously in 2023, 2021, and 2020, we made changes to our international legal structure, including an | ||
Non-GAAP Financial Guidance
Our forward-looking guidance for consolidated "adjusted operating margin" and "adjusted diluted earnings per share" represents non-GAAP financial measures that excludes or otherwise has been adjusted for special items from our
While we are able to estimate full year non-GAAP adjustments, we are unable to reconcile forward-looking adjusted measures to their nearest
CROCS, INC. AND SUBSIDIARIES | ||||||||
Three Months Ended | % | Constant % | ||||||
Favorable | ||||||||
2026 | 2025 | Q1 2026-2025 | Q1 2026-2025 | |||||
($ in thousands) | ||||||||
Crocs Brand: | ||||||||
Wholesale | (18.9) % | (19.2) % | ||||||
Direct-to-consumer | 207,529 | 197,835 | 4.9 % | 4.6 % | ||||
Total | 345,926 | 368,517 | (6.1) % | (6.4) % | ||||
International: | ||||||||
Wholesale | 307,425 | 306,122 | 0.4 % | (3.9) % | ||||
Direct-to-consumer | 114,065 | 86,969 | 31.2 % | 24.3 % | ||||
Total International | 421,490 | 393,091 | 7.2 % | 2.3 % | ||||
Total Crocs Brand | 0.8 % | (1.9) % | ||||||
Crocs Brand: | ||||||||
Wholesale | (6.5) % | (9.4) % | ||||||
Direct-to-consumer | 321,594 | 284,804 | 12.9 % | 10.6 % | ||||
Total Crocs Brand | 767,416 | 761,608 | 0.8 % | (1.9) % | ||||
HEYDUDE Brand: | ||||||||
Wholesale | 83,402 | 110,693 | (24.7) % | (26.0) % | ||||
Direct-to-consumer | 70,639 | 65,032 | 8.6 % | 8.4 % | ||||
Total HEYDUDE Brand (3) | 154,041 | 175,725 | (12.3) % | (13.2) % | ||||
Total consolidated revenues | (1.7) % | (4.0) % | ||||||
(1) | Reflects year over year change as if the current period results were in constant currency, which is a non-GAAP financial measure. See 'Reconciliation of | |||||||
(2) | ||||||||
(3) | The vast majority of HEYDUDE Brand revenues are derived from | |||||||
Investor Contact: | Abigail Ritter, Crocs, Inc. |
(302) 265-0922 | |
aritter@crocs.com | |
PR Contact: | Melissa Layton, Crocs, Inc. |
(303) 848-7885 | |
mlayton@crocs.com |
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SOURCE Crocs, Inc.