Crocs beats Q2 revenue growth expectations, warns of drop in Q3 revenue

Crocs

07/08/2025 12:35

Overview

Crocs Q2 revenue rises 3.4% yr/yr, beating analyst expectations, per LSEG data

Adjusted EPS for Q2 beats consensus, rising to $4.23, per LSEG data

Co says current operating environment is uncertain and challenging to predict

Co says to manage expenses by reducing inventory receipts, curbing promotional activity

Outlook

Company expects Q3 2025 revenue to decline 9% to 11%

Crocs anticipates Q3 adjusted operating margin of 18% to 19%

Company cites tariffs as impacting Q3 margin by 170 basis points

Crocs focuses on expense management and inventory reduction

Result Drivers

CROCS BRAND GROWTH - Crocs brand revenues increased 5% to $960 mln, driven by international growth

HEYDUDE DECLINE - HEYDUDE brand revenues decreased 3.9% to $190 mln, impacted by wholesale revenue decline

COST MANAGEMENT - Co implemented $50 mln in cost savings and reduced inventory receipts to manage expenses

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$1.15 bln
$1.14 bln (14 Analysts)
Q2 Adjusted EPS
Beat
$4.23
$4.01 (14 Analysts)
Q2 EPS
-$8.82
Q2 Adjusted Gross Margin
61.7%
Q2 Adjusted Income From Operations
$309 mln
Q2 Adjusted Operating Margin
26.9%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the footwear peer group is "buy"

Wall Street's median 12-month price target for Crocs Inc is $127.00, about 17.2% above its August 6 closing price of $105.13

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nPnc68Sjpa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)