Crocs, Inc. reported third‑quarter 2025 financial results, posting consolidated revenue of $996.3 million, a 6.2% year‑over‑year decline from $1,062 million in Q3 2024. Adjusted diluted earnings per share were $2.92, surpassing consensus estimates of $2.36.
Net income for the quarter was $145.8 million. Adjusted operating margin stood at 20.8%, down 4.6 percentage points from the 25.4% reported in Q3 2024, reflecting margin pressure from tariff increases and higher marketing spend.
The company’s enterprise adjusted gross margin fell 2.3 percentage points to 58.5%, while the Crocs brand’s adjusted gross margin was 61.8%, a slight decline from 63.1% in the prior year. The HEYDUDE brand experienced a 21.6% revenue drop to $160 million, with wholesale sales falling 38.6% and DTC sales slipping 0.5%.
Crocs brand revenue decreased 2.5% to $836 million, driven by a 7.9% decline in wholesale revenue and a modest 2.0% increase in direct‑to‑consumer sales. International sales grew 5.8% versus a 8.8% decline in North America.
Management highlighted disciplined execution, product innovation, and cost‑saving initiatives. The company announced a $100 million gross‑cost‑savings target for 2026 and an additional $50 million for 2025, alongside a $70 million to $75 million capital‑expenditure plan for the full year.
Share repurchases totaled 2.4 million shares, and debt was reduced by $63 million during the quarter. The company reaffirmed its commitment to returning value to shareholders through share buybacks and debt reduction.
For the fourth quarter, Crocs projected earnings per share in the range of $1.82 to $1.92. Revenue guidance for Q4 2025 is expected to decline approximately 8% from the $1,062 million reported in Q4 2024, reflecting ongoing market softness and the impact of tariffs.
The company’s free‑cash‑flow position remains strong, supporting future growth initiatives and shareholder returns.
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