Crocs surpasses $1 billion in quarterly revenue for the first time and  raised its full-year outlook

Consolidated revenue for the second quarter reached $1.18 billion, up 2.6% from the same period a year ago. The Crocs brand crossed $1 billion in quarterly revenue for the first time, posting $1.0 billion, a 4.3% increase year over year. The company's HEYDUDE brand brought in $179 million, down 5.7%.

Net income for the quarter was $204.9 million, or $4.13 per diluted share, compared with a net loss of $492.3 million, or $8.82 per diluted share, in the year-ago period. The prior-year loss was driven by noncash impairment charges related to the HEYDUDE brand. Adjusted diluted earnings per share came in at $4.55, up 7.6% from $4.23 a year earlier.

Analysts had projected revenue between $1.14 billion and $1.16 billion and earnings per share between $4.20 and $4.51, according to WWD.

Within the Crocs brand, direct-to-consumer sales climbed 12.9% to $559 million, though wholesale came in at $441 million, off 5.0%. Geographically, international revenue reached $542 million, a 7.8% gain, while North America contributed $459 million, essentially flat at plus 0.4%. For HEYDUDE, direct-to-consumer sales grew 7.2% to $96 million, but wholesale slid 17.2% to $83 million.

Andrew Rees, the company's chief executive officer, said in a statement: "Our results reflect broad consumer demand across both brands, healthy direct-to-consumer growth, and strong consumer response to new product innovation."

Looking at the full year, Crocs lifted its revenue outlook to growth of roughly 1% to 2% versus 2025, a step up from prior guidance that had ranged from a 1% decline to a 1% gain. The company raised its adjusted diluted earnings per share outlook to a range of $13.70 to $14.00, from $13.20 to $13.75 previously.

For the third quarter, though, the company guided to roughly flat revenue versus a year ago and adjusted diluted earnings per share of $3.20 to $3.30 — well below the $3.53 consensus estimate from analysts polled by FactSet, according to The Wall Street Journal.

CFO Patraic Reagan explained that moves made across both brands in the prior year are set to pay off more meaningfully in the fourth quarter than in the third, which also faces tougher year-over-year margin hurdles than the period that follows it.

Crocs also said its board approved a $1.5 billion increase to its share repurchase authorization, bringing the total available for future repurchases to approximately $2 billion. During the second quarter, the company repurchased approximately 2.3 million shares for $251 million.