Crocs raised its 2026 earnings-per-share outlook to $14 in July
Key Facts
In July, Crocs raised its adjusted diluted earnings-per-share outlook for fiscal 2026 to a range of $13.70 to $14.00, from $13.20 to $13.75, according to a company statement. The revision lifted both the lower and upper ends of its annual forecast, while the company gave a mixed picture of its two brands’ second-quarter performance. Crocs brand revenue increased, while HEYDUDE revenue fell, making the smaller brand’s progress an important factor in assessing the outlook. The company’s third-quarter guidance pointed to roughly flat consolidated revenue, with expected differences between the two brands. The available information did not include actual third-quarter results that could confirm whether that trajectory had changed.
Consolidated revenue in the second quarter of 2026 was about $1.179 billion, up 2.6% year over year, according to a Crocs statement. Direct-to-consumer revenue rose 12.0%, outpacing overall revenue growth. By brand, Crocs revenue increased 4.3% to $1.0 billion, while HEYDUDE revenue declined 5.7% to $179 million. These figures show that the group’s growth that quarter was underpinned by its flagship brand and the strength of its direct-to-consumer channel, while HEYDUDE remained under pressure compared with a year earlier. The contrast puts the expected later improvement at HEYDUDE in the context of a recovery from a recorded decline, rather than growth already underway in the second quarter.
Geographically, Crocs’ international revenue rose 7.8% to $542 million in the second quarter, according to the company. North American revenue increased 0.4% to $459 million, much slower growth than in international markets. The comparison highlights how demand outside North America contributed to the brand’s revenue expansion during the period. The figures are also consistent with the annual guidance issued on July 30, which targeted Crocs brand growth of 2% to 3% compared with 2025. By contrast, the same guidance forecast a 2% to 4% year-over-year decline in HEYDUDE revenue, reflecting the brands’ different starting points.
Crocs’ third-quarter guidance was more cautious than the flagship brand’s second-quarter results: the company expected consolidated revenue to be roughly flat compared with the same period in 2025. It forecast Crocs brand revenue to rise about 1%, while HEYDUDE revenue was expected to range from a 3% decline to flat. The company estimated an adjusted operating margin of 21.5% for the quarter and adjusted diluted earnings per share of $3.20 to $3.30. These estimates provide a framework for comparison when actual results are released, but do not by themselves establish that improvement occurred or that the decline continued. They also set a narrower operating and financial range than the annual outlook, pending quarterly results that were not included in the available information.
Alongside the updated outlook, the company expanded its share repurchase authorization. The board approved a $1.5 billion increase in the authorization on July 27, leaving about $2.0 billion available for repurchases, according to Crocs’ July 30 statement. The available amount is a ceiling for future activity and does not equal the value of shares repurchased in any particular quarter. This information therefore cannot confirm the third-quarter repurchase figure included in the previous draft. July’s update combines a higher earnings-per-share outlook, differing growth targets for the two brands and expanded authorization for share repurchases.