Crocs raises 2026 outlook as Hey Dude returns to growth

By Tom Whitfield

Crocs Inc. raised its full-year 2026 revenue-growth forecast to 3% after third-quarter revenue rose 4.6% to $1.04 billion. Shares rose 15.9% to $138.74 at 9:19 a.m. in pre-market trading following the outlook increase and earnings beat.

The earnings beat

For the quarter ended Sept. 30, net income jumped 48.6% to $216.8 million, or $4.52 per diluted share, from $145.8 million, or $2.70, a year earlier. Adjusted diluted EPS reached $3.69, ahead of Wall Street expectations for $3.31 on $1 billion of revenue.

Gross margin expanded to 66.2% from 58.5%, a gain of 7.7 percentage points. Direct-to-consumer revenue rose 6.9%, while wholesale increased 1.8%. The margin gain did the heavier lifting on the earnings line.

Andrew Rees, chief executive officer, said: “We delivered a strong third quarter with growth across brands, channels and geographies, while expanding margins year over year through disciplined execution of our brand strategies.” The segment figures qualify the praise: North America fell even as international markets and both brands grew.

The brands moved in opposite directions

The Crocs brand delivered what Rees called a record third quarter. Revenue rose 4.4% to $873 million, with double-digit international growth and continued momentum in product diversification.

DTC revenue increased 8.2% to $510 million, while wholesale slipped 0.5% to $382 million. North American revenue fell 2.1% to $438 million, while international revenue climbed 11.8% to $434 million. The brand’s growth leaned on international markets and company-controlled retail rather than wholesale.

Hey Dude returned to growth, with revenue up 6.1% to $170 million. Rees said the result fulfilled a commitment made earlier in the year to return the brand to growth. DTC revenue edged up 0.1% to $91 million, while wholesale increased 14.0% to $79 million. The recovery came through wholesale rather than a surge in DTC. At company level, DTC outpaced wholesale, but the two brands told opposite channel stories.

Cash allocation remained aggressive

During the quarter, Crocs returned $250 million to shareholders through share repurchases. It bought 2 million shares at an average price of $123.32, and approximately $1.7 billion of repurchase authorization remained available at quarter-end. Crocs also repaid $21 million of debt.

Rees cited “exceptional free-cash-flow generation” as giving the company “significant flexibility to invest behind our brands.” The announcement did not quantify that cash generation or specify where the investment would go.

For the first nine months, revenue rose nearly 2% to $3.14 billion from $3.08 billion. Net income reached $559.2 million, or $11.32 per share, against a net loss of $186.4 million, or $3.38 per share.

Guidance moved higher

Management raised its full-year 2026 forecasts and set fourth-quarter targets:

• Full-year 2026 revenue: up 3% from 2025, versus prior guidance of up 1% to 2%.
• Crocs brand: up 4%, versus prior guidance of up 2% to 3%; Hey Dude: flat, versus prior guidance of down 2% to 4%.
• Full-year adjusted diluted EPS: $14.45 to $14.65, versus the previous $13.70 to $14.00 range.
• Fourth-quarter revenue: up 7% to 9% from 2025; Crocs up 6% to 8%; Hey Dude up 10% to 12%.
• Fourth-quarter adjusted diluted EPS: $3.25 to $3.45.

These are forecasts, not booked orders.

What does this change for brand and sourcing teams?

The stronger guide does not mean every channel is accelerating. Crocs grew through DTC and international markets while wholesale and North American revenue fell; Hey Dude’s growth came chiefly from wholesale, with DTC nearly flat. For buyers, the useful read is not a uniform 3% order uplift but a requirement to allocate by brand, geography and route to market.

Cash flexibility is not a purchase schedule. The announcement specified no factory capacity, certifications, unit costs, lead times or supplier allocations, so it does not establish who pays for added volume or when production commitments change. Vendors will need product-level and regional detail before treating the outlook as a production signal.

The next checkpoint is Q4, when the 7% to 9% revenue target will test whether a margin-led beat can become a sales-led close; for suppliers, the signal is positive but selective.