Crocs Stock Rockets 20% as International Sales Surge, HEYDUDE Returns to Growth and 2026 Outlook Is Raised

Crocs shares surged nearly 20% in early trading Thursday. The footwear maker reported third-quarter results that beat expectations, showed a return to growth at its HEYDUDE brand and raised its full-year outlook.

The stock rose $23.86, or 19.9%, to $143.55. The gain lifted the Colorado-based company's market value to about $6.9 billion. Crocs shares are up about 45% over the past 52 weeks.

Beat on sales and profit

Crocs reported third-quarter revenue of $1.04 billion, up 4.6% from $996 million a year earlier. Analysts had expected about $1 billion, according to StockStory, citing S&P Global and Visible Alpha data.

Adjusted earnings rose 26% to $3.69 a share, well above the consensus estimate of $3.31. On a reported basis, earnings jumped 67% to $4.52 a share, helped by a $64 million one-time benefit from refunds of tariffs.

"We delivered a strong third quarter with growth across brands, channels and geographies," Chief Executive Andrew Rees said in the earnings release.

International strength

The Crocs brand posted record third-quarter revenue of $873 million, up 4.4%.

Growth came from outside the United States. International revenue for the Crocs brand jumped 11.8% to $434 million, while North American revenue fell 2.1% to $438 million.

"The Crocs Brand delivered a record third quarter with revenues up 4%, led by double-digit international revenue growth," Rees said.

Direct-to-consumer sales, which include company stores and online, rose 8.2%. Wholesale revenue was roughly flat.

HEYDUDE turns around

The HEYDUDE brand, which Crocs bought in 2022 and which has struggled in recent years, returned to growth.

HEYDUDE revenue rose 6.1% to $170 million, led by a 14% jump in wholesale sales. Its adjusted gross margin improved to 45.8% from 42.3%.

"HEYDUDE revenues grew 6%, marking an important milestone as we delivered on our commitment," Rees said.

Key third-quarter figures:

Revenue: $1.043 billion, up 4.6% Adjusted EPS: $3.69 vs. $3.31 estimate Crocs brand revenue: $873 million, up 4.4% HEYDUDE revenue: $170 million, up 6.1% Adjusted gross margin: 60.3%, up 180 basis points Free cash flow: $276 million

Outlook raised

Crocs raised its full-year guidance on several measures.

The company now expects 2026 revenue to grow about 3%, up from 1% to 2% previously. It raised its adjusted earnings forecast to $14.45 to $14.65 a share, from $13.70 to $14.00.

HEYDUDE revenue is now expected to be about flat for the year, compared with an earlier forecast for a decline of 2% to 4%.

"As a result, we are raising our full-year 2026 enterprise revenue growth outlook to approximately 3%," Rees said.

For the fourth quarter, Crocs forecast revenue growth of 7% to 9% and adjusted earnings of $3.25 to $3.45 a share. StockStory said the midpoint of the revenue forecast was about 4% above analyst expectations.

Buybacks continue

Crocs continued to return cash to shareholders. It bought back about 2 million shares for $250 million during the quarter, at an average price of $123.32.

Year-to-date buybacks total $506 million, and the company has about $1.7 billion remaining under its repurchase authorization. It also repaid $21 million of debt.

"The strength of our business model and exceptional free-cash-flow generation provides us with significant flexibility," Rees said.

Margins improve

Adjusted gross margin rose to 60.3% from 58.5%, and adjusted operating margin improved to 22.3% from 20.8%.

Crocs ended the quarter with $163 million in cash and $1.29 billion in total borrowings. Inventory rose 4% to $413 million.

Investor relief

The results eased concerns about weaker U.S. consumer spending and the long-term appeal of the company's foam clogs.

Crocs has relied increasingly on international markets, particularly Asia, as North American demand has cooled. The turnaround at HEYDUDE also removes a major worry that had weighed on the stock since the brand's sales began falling.

Investors will be watching whether the momentum continues through the holiday season, which Crocs expects to deliver its fastest quarterly growth of the year.