Crocs Raises Full-Year Outlook for Third Time as HEYDUDE Returns to Growth

Crocs raised its full-year 2026 outlook for the third time this year on Thursday, after third-quarter results showed its HEYDUDE brand returning to growth and adjusted earnings per share climbing 26.4%.

The Broomfield, Colorado-based footwear company now expects 2026 adjusted diluted EPS of $14.45 to $14.65, up from its previous range of $13.70 to $14.00, according to the earnings release it filed with an 8-K on Thursday. It expects full-year revenue to rise about 3%, compared with prior guidance of 1% to 2% growth.

HEYDUDE turns the corner

HEYDUDE revenue rose 6.1% to $170 million, driven by a 14.0% jump in wholesale revenue, while direct-to-consumer sales edged up 0.1%. The company now expects HEYDUDE revenue to be about flat for 2026, improved from a prior forecast of a 2% to 4% decline.

"HEYDUDE revenues grew 6%, marking an important milestone as we delivered on our commitment stated earlier in the year to return the brand to growth," CEO Andrew Rees said in the release.

The Crocs Brand posted what the company called a record third quarter, with revenue up 4.4% to $873 million. International revenue rose 11.8% to $434 million, while North America revenue fell 2.1% to $438 million. Crocs Brand direct-to-consumer revenue grew 8.2%.

Margins widen

Consolidated revenue increased 4.6% to $1.043 billion. Adjusted gross margin improved 180 basis points to 60.3%, and adjusted operating margin widened to 22.3% from 20.8%.

Diluted EPS rose 67.4% to $4.52 from $2.70, and adjusted diluted EPS increased to $3.69 from $2.92. On a GAAP basis, gross margin was 66.2% and income from operations rose 40.6% to $292 million.

For the full year, Crocs expects a non-GAAP net benefit of $40 million, primarily associated with tariff refunds and its cost reduction initiatives, and adjusted operating margin to expand modestly from 22.5%.

Buybacks and debt paydown

The company repurchased about 2.0 million shares for $250.0 million in the quarter at an average price of $123.32, leaving about $1.7 billion of authorization available. It also repaid $21 million of debt, and total borrowings stood at $1.29 billion at quarter-end, compared with $1.32 billion a year earlier.

Fourth-quarter view

For the fourth quarter, Crocs expects revenue to rise about 7% to 9% from a year earlier, with the Crocs Brand up 6% to 8% and HEYDUDE up 10% to 12%. It guided to adjusted diluted EPS of $3.25 to $3.45 and an adjusted operating margin of about 20.5%. The EPS outlooks do not assume any impact from future share repurchases.

By the numbers

• $1.043 billion: third-quarter revenue, up 4.6%
• $3.69: adjusted diluted EPS, up 26.4%
• 6.1%: HEYDUDE revenue growth
• 11.8%: Crocs Brand international revenue growth
• $250 million: third-quarter share repurchases
• $14.45 to $14.65: new 2026 adjusted EPS outlook

Sources

1. Crocs Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0001334036-26-000058)

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