---
title: "Crocs Shares Sink After Soft Third Quarter Outlook Overshadows Earnings Beat"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/294377279.md"
description: "Crocs (CROX) shares dropped over 12% in premarket trading as third-quarter guidance missed estimates, overshadowing a second-quarter earnings and revenue beat. While the company raised its full-year outlook and expanded its $1.5 billion share buyback program, weak Q3 projections for EPS and revenue triggered the sell-off."
datetime: "2026-07-30T13:27:34.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/294377279.md)
  - [en](https://longbridge.com/en/news/294377279.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/294377279.md)
generator: "portal-rs"
---

# Crocs Shares Sink After Soft Third Quarter Outlook Overshadows Earnings Beat

**Crocs, Inc.** (NASDAQ:CROX) shares are trading lower premarket on Thursday after the company reported provided below-consensus third quarter guidance despite second-quarter earnings beat.

Adjusted EPS of $4.55, beat the $4.34 analyst estimate.

Revenue rose 2.6% year over year (Y/Y) and up 2.0% Y/Y on a constant currency basis to $1.179 billion which exceeded the $1.148 billion estimate. 

Adjusted gross margin contracted 170 basis points Y/Y to 60.0% in the quarter.

## Brand Performance

The **Crocs** brand generated revenue growth of 4.3% Y/Y (+3.7% on a constant-currency basis) to $1.0 billion in the quarter.

By channel, Direct-to-consumer (DTC) sales rose 12.9% Y/Y (+12.0% in constant currency) to $559 million. Meanwhile, wholesale revenue declined 5.0% Y/Y (-5.4% in constant currency) to $441 million. By regions, North America revenue edged up 0.4% Y/Y to $459 million, while international revenue rose 7.8% Y/Y (+6.6% on in constant-currency) to $542 million.

**HEYDUDE** brand revenue declined 5.7% Y/Y (-5.8% in constant currency) to $179 million. By channel, DTC sales rose 7.2% Y/Y (+7.1% in constant-currency) to $96 million, while wholesale revenue fell 17.2% Y/Y (-17.4% in constant currency) to $83 million.

## Capital Return & Liquidity

The company bought back around 2.3 million shares for $251 million. At the quarter-end, the company had about $496 million of shares remaining available under repurchase authorization. 

The company also expanded its share repurchase programme by $1.5 billion, bringing the total authorised buyback capacity to approximately $2 billion.

As of June 30, 2026, cash and cash equivalents stood at $170 million and inventories stood at $389 million

## Outlook

The company raised its FY26 adjusted EPS outlook to $13.70-$14.00 from the previous range of $13.20-$13.75, compared with the $13.68 estimate. 

Crocs also boosted FY26 revenue guidance to $4.081 billion-$4.122 billion from $4.000 billion-$4.081 billion, versus the $4.074 billion estimate.

For the third quarter, Crocs expects adjusted EPS of $3.20-$3.30, below the $3.53 estimate, with revenue guidance of approximately $996.3 million, compared with the $1.020 billion estimate.

**CROX Stock Price Activity**: Crocs shares were down 12.37% at $117.00 during premarket trading Thursday.

 **Read Also: UGG, HOKA Parent Deckers Outdoor Q1 Earnings Beat Estimates** 

*Photo via Shutterstock*

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- [CROX.US](https://longbridge.com/en/quote/CROX.US.md)
- [DECK.US](https://longbridge.com/en/quote/DECK.US.md)

## Related News & Research

- [Crocs, Inc. (NASDAQ:CROX) Given Consensus Recommendation of "Moderate Buy" by Analysts](https://longbridge.com/en/news/297290982.md)
- [Is Crocs (CROX) Undervalued After Its CEO Sold Shares?](https://longbridge.com/en/news/296192586.md)
- [Crocs Q2 profit rises on DTC growth; boosts buyback](https://longbridge.com/en/news/294356511.md)
- [Truist names Harold Ford Jr. vice chair of wholesale banking](https://longbridge.com/en/news/297227328.md)
- [Major Insider Move: Crocs CEO Executes Multi-Million Dollar Stock Sale](https://longbridge.com/en/news/295613377.md)

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**