TLDR
- Crocs posted Q4 adjusted earnings of $2.29 per share, crushing Wall Street’s $1.91 estimate, while revenue of $957.6 million beat forecasts of $916.9 million.
- The stock surged 14% to $94.24 in premarket trading after falling 22% throughout 2025.
- Crocs brand sales rose 0.8% to $768 million but Heydude sales dropped 16.9% to $189 million.
- Full-year 2026 earnings guidance of $12.88 to $13.35 per share exceeded analyst estimates of $11.89.
- The company plans $100 million in cost savings for 2026 to improve efficiency and fund brand investments.
Crocs delivered a surprise fourth-quarter performance that sent shares jumping Thursday morning. The footwear maker posted adjusted earnings of $2.29 per share, demolishing analyst expectations of $1.91. Revenue fell 3.2% to $957.6 million but still topped the $916.9 million Wall Street predicted.
Shares rocketed 14% higher to $94.24 in premarket trading. The rally comes after a brutal 2025 that saw the stock drop 22%. Investors had questioned whether demand for the distinctive clogs was finally cooling off.
Thursday’s results suggest the concerns were premature. CEO Andrew Rees called it a strong finish to the year. “We ended 2025 on a strong note with a better-than-expected holiday quarter,” Rees said. He pointed to international growth as a key driver of the outperformance.
Mixed Results Between Brands
The quarter revealed diverging trends across Crocs’ portfolio. The core Crocs brand managed to eke out growth of 0.8%, reaching $768 million in sales. The modest gain kept the flagship business on track.
Heydude presented a different picture. The casual footwear brand saw sales crater 16.9% to $189 million. The steep decline highlights ongoing challenges with the acquisition. Despite the Heydude weakness, overall company results exceeded expectations.
Crocs is implementing a $100 million cost-cutting initiative for 2026. The efficiency program aims to boost margins while preserving investment capacity. Rees said the moves position the company with greater confidence in its growth strategy.
Guidance Impresses Investors
The 2026 outlook drove much of Thursday’s share price surge. Crocs forecasted adjusted earnings of $12.88 to $13.35 per share for the full year. That guidance sits well above the $11.89 consensus from analysts.
Revenue is expected to land roughly flat to down 1% for 2026. Wall Street had been modeling a steeper 1.9% decline. The better outlook suggests management sees stabilization on the horizon.
First-quarter guidance came in at $2.67 to $2.77 per share in adjusted earnings. Revenue is projected to fall 3.5% to 5.5% year-over-year. Analysts had expected $2.52 per share on revenue down 4.6%.
Net income totaled $105.2 million or $2.03 per share for the quarter. That compared to $368.9 million or $6.36 per share a year earlier. The decline reflects one-time items that inflated prior-year results.
The company enters 2026 with renewed momentum after a difficult year. The stock had dropped following the previous two quarterly reports. Market watchers wondered if the clog craze was finally fading.
International markets provided a bright spot in the quarter. Strong overseas sales helped offset domestic weakness and Heydude’s struggles. The geographic diversification is proving valuable for Crocs.
The cost-savings program gives management flexibility to keep investing in brand building. The $100 million target represents a meaningful portion of operating expenses. Those savings should flow through to improved profitability if the company hits its targets.
Crocs ended the quarter with revenue of $957.6 million, beating expectations despite a year-over-year decline of 3.2%.
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