Crocs, Inc. (NASDAQ:CROX) reported better-than-expected first quarter results, beating Wall Street estimates for both revenue and adjusted earnings per share, while also raising its full-year outlook.
Crocs raised its full-year 2026 guidance, now expecting revenue to range from down 1% to up 1% year over year, compared with prior guidance calling for a slight decline.
Adjusted earnings per share are now expected between $13.20 and $13.75, up from the previous range of $12.88 to $13.35.
For the second quarter, Crocs expects revenue to be slightly lower year-over-year, with adjusted EPS projected between $4.15 and $4.35.
For Q1, the footwear company posted adjusted earnings per share of $2.99, above analyst expectations of $2.77.
Revenue came in at $921.5 million, slightly ahead of forecasts of about $900.9 million.
Despite the earnings beat, consolidated revenue declined 1.7% year over year, or 4% on a constant currency basis, reflecting weaker wholesale performance that was partially offset by growth in direct-to-consumer (DTC) channels.
Crocs said DTC revenue rose 12.1% on a reported basis, while wholesale revenue fell 9.9%. Gross margin was 56.8%, down from 57.8% a year earlier.
Net income and operating results were mixed on a GAAP basis, with diluted earnings per share of $2.71, down 4.2% year over year. Adjusted operating income declined 7.8% to $206 million.
Crocs and its HEYDUDE brand showed diverging performance in the quarter. Crocs brand revenue increased 0.8% to $767 million, supported by 12.9% growth in DTC sales. HEYDUDE revenue declined 12.3% to $154 million, weighed down by a 24.7% drop in wholesale.
International sales for the Crocs brand rose 7.2%, while North America declined 6.1%.
Crocs CEO Andrew Rees said the company’s results were driven by “broad consumer relevance for both of our brands and disciplined execution,” adding that demand for new products and innovation remained strong across categories.
“We are encouraged by strong consumer response to product newness across categories, supported by our high pace of innovation and consistent brand storytelling," Rees said.
The company also continued share repurchases, buying back 0.8 million shares for $73.6 million after the quarter ended, with $673.2 million remaining under its authorization.
Shares of Crocs were little changed following the report, trading at $100.
