Crocs, Inc. (NASDAQ:CROX) stock surged Thursday after a strong fourth-quarter earnings beat, coinciding with elevated short interest, amplifying the stock’s premarket momentum.
The footwear maker reported adjusted earnings per share of $2.29, exceeding the $1.90 consensus, on revenue of $957.64 million versus expectations of $922.33 million.
Fourth-quarter adjusted gross margin fell to 54.7% from 57.9% a year earlier. Income from operations dropped 26.8% to $146 million, yielding a 15.3% operating margin versus 20.2%. Adjusted operating income decreased 19.7% to $161 million, translating to a 16.8% margin.
“We ended 2025 on a strong note with a better-than-expected Holiday quarter,” said Andrew Rees, CEO.
Crocs Brand revenue rose 0.8% to $768 million, while HEYDUDE declined 16.9% to $189 million. International Crocs sales climbed 14.1% to $332 million, offsetting a 7.4% North America drop.
The company repurchased 6.5 million shares for $577 million in 2025. Cash stood at $130 million at year-end, total borrowings fell to $1.23 billion, inventories rose to $369 million, and capital expenditures totaled $51 million.
Outlook Q1
Crocs guided for first-quarter 2026 adjusted EPS of $2.67–$2.77, topping the $2.52 consensus estimate, even as it forecast revenue to decline about 5.5% to 3.5% year over year. The company expects Crocs brand sales to fall in the low single digits and HEYDUDE revenue to drop 18%–15%, while projecting an adjusted operating margin of roughly 21.5%.
Outlook FY26
Crocs expects fiscal 2026 revenue to range from down about 1% to slightly positive year over year, with its core Crocs brand projected to grow up to 2% while the HEYDUDE segment is forecast to decline 7%–9%.
The company anticipates modest adjusted operating margin expansion from 22.3%, alongside roughly $25 million in non-GAAP adjustments tied mainly to supply chain optimization and cost-efficiency initiatives.
It guides adjusted EPS to $12.88–$13.35, above the $12.10 consensus estimate, with capital expenditures of $70 million–$80 million and an adjusted tax rate near 18%.
Rees added, “We enter 2026 with greater confidence around our growth engines which are diversified across channels, geographies, brands, and product categories. We have identified and actioned $100 million of cost savings in 2026 aimed at driving greater efficiency while providing the flexibility to continue to invest behind our brands and deepen our connection with consumers.”
Elevated Short Float
The company has a short float of 6.058 million shares, representing 13.72% of its publicly traded float, suggesting an elevated level of short interest among investors positioning against the stock.
CROX Price Action: Crocs shares were up 14.23% at $94.50 during premarket trading on Thursday, according to Benzinga Pro data.
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