Crocs delivered fourth-quarter results that surpassed Wall Street’s expectations for both revenue and adjusted profit, reflected by a significant positive market reaction. Management attributed the quarter’s outperformance to double-digit international growth, robust direct-to-consumer sales, and sustained demand for new product launches. CEO Andrew Rees highlighted that the Crocs brand experienced strong consumer response during the holiday season, especially in international markets and through digital channels. The company also credited disciplined inventory and promotional management for supporting margins despite ongoing tariff headwinds.
Is now the time to buy CROX? Find out in our full research report (it’s free for active Edge members).
Crocs (CROX) Q4 CY2025 Highlights:
- Revenue: $957.6 million vs analyst estimates of $918.2 million (3.2% year-on-year decline, 4.3% beat)
- Adjusted EPS: $2.29 vs analyst estimates of $1.91 (19.7% beat)
- Adjusted EBITDA: $181.5 million vs analyst estimates of $162.2 million (19% margin, 11.9% beat)
- Revenue Guidance for Q1 CY2026 is $895.2 million at the midpoint, below analyst estimates of $904.6 million
- Adjusted EPS guidance for the upcoming financial year 2026 is $13.12 at the midpoint, beating analyst estimates by 10%
- Operating Margin: 15.3%, down from 20.2% in the same quarter last year
- Constant Currency Revenue was flat year on year (3.8% in the same quarter last year)
- Market Capitalization: $4.93 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Crocs’s Q4 Earnings Call
- Jonathan Robert Komp (Baird) asked about the outlook for North America and the drivers of potential improvement. CEO Andrew Rees detailed plans for clog innovation, sandal growth, and digital engagement as critical to returning to growth.
- Adrienne Eugenia Yih-Tennant (Barclays) inquired about the scale of new product introductions and AI investment. Rees explained that product newness in 2026 exceeds prior years and that AI investments are focused on SG&A and operational efficiencies rather than capital expenditures.
- Rick Patel (Raymond James) sought clarity on pricing assumptions and promotional activity in North America. Rees clarified that price changes are not a significant driver for 2026, and margin improvements are tied to prior strategic decisions rather than new price increases.
- Peter McGoldrick (Stifel) asked about the sustainability of international growth and regional contributions. Rees highlighted double-digit growth in China, Western Europe, and Japan, emphasizing strategic investments in India and other developing markets.
- Mitch Kummetz (Seaport Research) questioned the timeline for HeyDude’s recovery and the impact of inventory cleanup. CFO Patraic Reagan noted that lapping 2025 actions and introducing new products should support a return to growth in the second half of 2026.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts are closely monitoring (1) the pace of North American demand recovery, especially in the wholesale channel and new product launches; (2) the ongoing expansion and market share gains in key international regions, including the rollout of new stores in China and India; and (3) the execution of cost savings initiatives to offset tariff and SG&A pressures. Progress in HeyDude’s brand stabilization and growth will also be a key indicator of overall business momentum.
Crocs currently trades at $97.96, up from $82.73 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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