Overview
- Adjusted EPS reached $2.92, beating estimates, as revenue fell 6.2% to $996.3 million for the quarter ended Sept. 30.
- Management guided fourth-quarter revenue down about 8% year over year with adjusted EPS of $1.82 to $1.92 and an adjusted operating margin near 15.5%.
- Sales mix diverged as direct-to-consumer grew 1.6% while wholesale dropped 14.7%, with Crocs-brand North America down 8.8% and international up 5.8%.
- HEYDUDE remained the weak spot with Q3 revenue down 21.6% to $160 million and a mid-20% decline expected in Q4 alongside ongoing inventory cleanup and retailer markdown support.
- Crocs repurchased 2.4 million shares and paid down $63 million in debt, while gross margin contracted 110 basis points to 58.5% and management outlined $50 million of 2025 savings plus an additional $100 million identified to drive 2026 operating leverage.