Overview

* Crocs ( CROX ) Q2 revenue rises 3.4% yr/yr, beating analyst expectations, per LSEG data

* Adjusted EPS for Q2 beats consensus, rising to $4.23, per LSEG data

* Co says current operating environment is uncertain and challenging to predict

* Co says to manage expenses by reducing inventory receipts, curbing promotional activity

Outlook

* Company expects Q3 2025 revenue to decline 9% to 11%

* Crocs ( CROX ) anticipates Q3 adjusted operating margin of 18% to 19%

* Company cites tariffs as impacting Q3 margin by 170 basis points

* Crocs ( CROX ) focuses on expense management and inventory reduction

Result Drivers

* CROCS BRAND GROWTH - Crocs brand revenues increased 5% to $960 mln, driven by international growth

* HEYDUDE DECLINE - HEYDUDE brand revenues decreased 3.9% to $190 mln, impacted by wholesale revenue decline

* COST MANAGEMENT - Co implemented $50 mln in cost savings and reduced inventory receipts to manage expenses

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $1.15 $1.14

Revenue bln bln (14

Analysts

)

Q2 Beat $4.23 $4.01

Adjusted (14

EPS Analysts

)

Q2 EPS -$8.82

Q2 61.7%

Adjusted

Gross

Margin

Q2 $309 mln

Adjusted

Income

From

Operatio

ns

Q2 26.9%

Adjusted

Operatin

g Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the footwear peer group is "buy"

* Wall Street's median 12-month price target for Crocs Inc ( CROX ) is $127.00, about 17.2% above its August 6 closing price of $105.13

* The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)