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Crocs (CROX) is soaring following a better-than-expected holiday quarter and strong FY26 guidance. The casual shoemaker delivered a large Q4 EPS beat, while revenue declined 3.3% yr/yr to $957.6 mln. For FY26, CROX expects EPS of $12.88-13.35, which was well above expectations, and revenues to be down approximately 1% to up slightly from 2025, suggesting recent initiatives are supporting earnings growth despite a muted top line.

• Crocs brand returned to modest growth, increasing 0.8% yr/yr to $768 mln, better than the anticipated ~3% decline, though it remains pressured in North America where revenue decreased 7.4% to $436 mln.
• On the other hand, Crocs revenue increased 14.1% to $332 mln internationally, continuing to be a relative bright spot, led by strength in China, Japan, Western Europe and India.
• HEYDUDE fell 16.9% to $189 mln, better than the anticipated mid-20% decline, as the wholesale reset continued with wholesale down 40.5% to $56 mln while DTC was flat at $133 mln.
• Adj. Gross margin fell 320 bps yr/yr to 54.7%, driven by a 300 bps tariff headwind. While it expects 80 bps of tariff pressure in FY26, it reiterated $100 mln in cost savings and expects adj. margin to improve slightly from 2025.
• CROX noted the strategic actions taken in 2H25 will continue to weigh on results in early 2026, with Q1 revenue expected to be down 3.5-5.5%.
• As a result, FY26 will be back-half weighted. Notably, it expects the North America revenue rate to improve from 2025 and HEYDUDE to return to growth in 2H26.

Briefing.com Analyst Insight

This was a better-than-expected holiday quarter from CROX, though it's not to say the reset is over, with continued pressure in North America and another double-digit decline at HEYDUDE. Still, there were some clear highlights with the Crocs brand returning to modest growth, fueled by strong international demand, which continues to be a relative bright spot. The key driver was guidance, which came in notably better than expected. While the top-line outlook remains muted, reflecting first-half pressure, CROX expects EPS growth, supported by cost savings as well as improving North America trends and a return to growth in HEYDUDE in the back half. Overall, this marks a step in the right direction, but with CROX calling for a back-half acceleration, investors will be scrutinizing execution to see those improving trends translate into sustained results.