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