Crocs (CROX) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $1.18 billion, up 2.6% year-over-year, with Crocs Brand surpassing $1 billion in quarterly revenue for the first time, driven by strong DTC growth and international expansion.

• Raised full-year 2026 outlook for both revenue and earnings, reflecting robust first-half performance and broad consumer demand.

• Increased share repurchase authorization by $1.5 billion, bringing total to $2 billion, and repurchased $251 million in shares in Q2.

• Strong product innovation and diversification, especially in sandals and new clog franchises, fueled growth.

• Net income rebounded to $204.9 million, or $4.13 per diluted share, compared to a net loss in the prior year due to absence of asset impairments.

Financial highlights

• Q2 2026 consolidated revenues: $1.18 billion (+2.6% year-over-year); Crocs Brand up 4.3% to $1.0 billion; HEYDUDE Brand down 5.7% to $179 million.

• Adjusted gross margin: 60.0% (down 170 bps); Crocs Brand 63.1% (down 100–150 bps), HEYDUDE 43.7% (down 650–710 bps).

• Adjusted operating margin: 25.1% (down 180 bps); adjusted operating income: $296 million (down 4.5% year-over-year).

• Adjusted diluted EPS: $4.55 (up 8% year-over-year); GAAP diluted EPS: $4.13 (vs. loss of $8.82 prior year).

• Free cash flow for Q2: $331 million; cash and equivalents: $170 million; total borrowings: $1.31 billion.

Outlook and guidance

• Full-year 2026 revenue expected to increase 1–2%; Crocs Brand up 2–3%, HEYDUDE down 2–4% (improved from prior guidance).

• Adjusted diluted EPS guidance raised to $13.70–$14.00 (from $13.20–$13.75); adjusted operating margin expected to expand modestly from 22.3%.

• Q3 2026 revenues expected to be flat year-over-year; adjusted EPS $3.20–$3.30; Q3 adjusted operating margin ~21.5%.

• Capital expenditures projected at $70–$80 million for the year.

• Approximately $70 million in tariff refunds anticipated, with $20 million received post-quarter and to be recognized in Q3 2026.