Crocs records 2025 revenue of 4 billion dollars despite consolidated decline

Broomfield-based footwear giant Crocs reported that its full-year 2025 revenue exceeded 4 billion dollars despite a slight consolidated decline of 1.5 percent compared to the previous year.

The company’s performance was bolstered by the Crocs brand, which saw international revenues grow by 11.9 percent to 1.62 billion dollars, offsetting a 6.8 percent contraction in its North American market. In contrast, the Heydude brand experienced a more significant decline, with annual revenues falling 13.3 percent to 715 million dollars.

Operational and financial highlights

The company's financial health in 2025 was impacted by non-cash impairment charges totalling 737 million dollars related to the Heydude trademark and goodwill. These charges contributed to a drop in annual income from operations to 150 million dollars, compared to 1.02 billion dollars in 2024, and resulted in a diluted loss per share of 1.50 dollars.

On an adjusted basis, however, the company maintained a healthy operating margin of 22.3 percent and reported adjusted diluted earnings per share of 12.51 dollars.

Direct-to-consumer (DTC) revenues rose by 3.3 percent to lead the company's channel performance, while wholesale revenues declined by 6.2 percent.

Outlook for 2026

Chief executive officer Andrew Rees stated that the company enters 2026 with confidence in its diversified growth engines and has already actioned 100 million dollars in cost savings to drive efficiency.

For the first quarter of 2026, Crocs expects revenues to decline between 3.5 percent and 5.5 percent. Crocs brand to be down approximately low-single-digits and Heydude brand to be down approximately 18 percent to 15 percent. Adjusted diluted earnings per share are forecasted to be in the range of 2.67 dollars to 2.77 dollars.

For the full year 2026, the company forecasts revenues to be down approximately 1 percent to up slightly compared to full-year 2025, at currency rates, Crocs brand to be approximately flat to up 2 percent and Heydude brand to be down approximately 9 percent to 7 percent compared to full-year 2025. Adjusted diluted EPS is expected to be in the range of 12.88 dollars to 13.35 dollars, with capital expenditures projected between 70 million dollars and 80 million dollars.