Crocs, Inc. reported its financial results for the third quarter of 2026, filing an 8-K with the SEC on October 29, 2026. The company reported consolidated revenues of $1,043 million for the three months ended September 30, 2026, an increase of 4.6% compared to the same period in the prior year. This growth was driven by a 6.9% increase in direct-to-consumer revenues and a 1.8% increase in wholesale revenues.
Gross margin for the quarter was 66.2%, a significant increase from 58.5% in the prior year. This improvement was reflected in the company's adjusted gross margin, which increased by 180 basis points to 60.3%. Income from operations rose to $292 million, resulting in an operating margin of 28.0%. Diluted earnings per share increased to $4.52, up 67.4% from $2.70 in the prior year.
The company's two brands performed as follows:
- Crocs Brand: Revenues increased 4.4% to $873 million. Direct-to-consumer revenues grew 8.2% to $510 million, while wholesale revenues decreased 0.5% to $362 million. International revenues increased 11.8% to $434 million, while North America revenues decreased 2.1% to $438 million.
- HEYDUDE Brand: Revenues increased 6.1% to $170 million, marking the brand's return to growth. Direct-to-consumer revenues increased 0.1% to $91 million, while wholesale revenues increased 14.0% to $79 million.
In terms of capital allocation, Crocs repurchased approximately 2.0 million shares during the third quarter for a total of $250.0 million at an average share price of $123.32. The company also repaid $21 million of debt. At the end of the quarter, approximately $1.7 billion of share repurchase authorization remained available.
Crocs raised its full-year 2026 outlook. The company now expects consolidated revenues to be up approximately 3% compared to full year 2025, up from its previous guidance of up 1% to 2%. The company also raised its adjusted diluted earnings per share guidance to a range of $14.45 to $14.65, up from the previous range of $13.70 to $14.00.
