US' Crocs delivers strong Q2, but projects 9–11% revenue dip in Q3

The company also posted a reported operating loss of $428 million, primarily due to non-cash impairment charges totalling $737 million related to the Heydude trademark and goodwill. The adjusted income from operations declined 5 per cent to $309 million, while adjusted diluted earnings per share rose 5.5 per cent to $4.23, Crocs said in a press release.

Brand-wise, Crocs posted a revenue of $960 million, a 5 per cent increase YoY, driven by an 18.1 per cent surge in international markets that offset a 6.5 per cent decline in North America. Meanwhile, Heydude brand saw revenue fall of 3.9 per cent to $190 million, with wholesale revenue dropping 12.4 per cent, although DTC sales improved by 7.6 per cent.

“We reported a solid second quarter with both our Crocs and Heydude brands contributing to our performance, while delivering the highest ever gross profit quarter in company history. Our strong cash flow generation enabled us to return shareholder value through $133 million in share repurchases, and $105 million in debt paydown,” said Andrew Rees, chief executive officer (CEO) at Crocs.

As of June 30, 2025, the company held $201 million in cash, inventories of $405 million, and reduced total borrowings to $1,379 million. Capital expenditures were $32 million for the quarter.

“While we are pleased by this performance, the current operating environment is uncertain and challenging to predict. Against this, we have chosen to focus on managing expenses including the $50 million in cost savings we have already implemented, reducing our inventory receipts, and pulling back on promotional activity to protect brand health in the marketplace,” added Rees. “Although these actions will impact the topline of our business in the short term, they will position our business to win, drive margin dollars, and support continued cash flow generation longer term.”

Looking ahead, Crocs has issued guidance only for the third quarter (Q3), citing global trade uncertainty and consumer-related pressures. The company is expecting revenues to decline by 11 to 9 per cent YoY and anticipates an adjusted operating margin of 18 to 19 per cent, including a 170 basis-point headwind from existing and anticipated tariffs, added the release.

ALCHEMPro News Desk (SG)