Crocs Q3 revenue declines 6.2% but beats expectations, expects steeper drop in Q4 sales

Crocs

30/10/2025 11:20

Overview

Crocs Q3 revenue declines 6.2% but beats analyst expectations

Adjusted EPS for Q3 beats consensus, showing resilience in challenging market

Company repurchased 2.4 mln shares, paid down $63 mln in debt

Outlook

Company expects Q4 2025 revenue to decline approximately 8% year-over-year

Crocs Brand Q4 2025 revenue expected to decline approximately 3% year-over-year

HEYDUDE Brand Q4 2025 revenue expected to decline mid-20% year-over-year

Result Drivers

INTERNATIONAL STRENGTH - Crocs brand benefited from a 5.8% increase in international revenues, offsetting declines in North America

DTC OUTPERFORMANCE - HEYDUDE brand's direct-to-consumer revenues remained stable, decreasing only 0.5%

CASH FLOW UTILIZATION - Strong cash flow enabled Crocs to repurchase 2.4 million shares and pay down $63 million in debt

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$996 mln
$962.54 mln (14 Analysts)
Q3 Adjusted EPS
Beat
$2.92
$2.36 (14 Analysts)
Q3 EPS
$2.70
Q3 Adjusted Gross Margin
58.50%
Q3 Adjusted Income From Operations
$208 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 7 "hold" and 2 "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 $85.00, about 0.4% above its October 29 closing price of $84.69

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

Press Release: ID:nPnGjnk2a

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(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.)