02:09 PM EDT, 07/30/2026 (MT Newswires) -- Crocs ( CROX ) shares were slumping Thursday after the footwear maker issued a downbeat third-quarter earnings guidance, while its second-quarter results topped Wall Street's estimates.

For the ongoing quarter, the company expects adjusted earnings of $3.20 to $3.30 a share, below the FactSet-polled consensus of $3.49. It projects third-quarter revenue to be roughly flat on an annual basis, at recent currency rates.

Crocs ( CROX ) shares were down 8.5% in afternoon trade, trimming its year-to-date gains to 43%.

The company will implement a "business model change" with one of its largest marketplace partners starting in the ongoing quarter that will impact how the company recognizes Crocs brand North America revenue between its direct-to-consumer and wholesale channels, Chief Financial Officer Patraic Reagan said on an earnings call, according to a FactSet transcript.

"The net of these revenue shifts will be lower overall revenue," Reagan told analysts. "We will see an improvement to operating profit."

For the June quarter, non-GAAP EPS rose to $4.55 from $4.23 a year earlier, surpassing the Street's views for $4.35. Revenue grew 2.6% to $1.18 billion, also exceeding the $1.15 billion modeled by analysts.

The company saw "record enterprise revenue, including the Crocs brand surpassing $1 billion in quarterly revenue for the first time ever," Chief Executive Andrew Rees said in an earnings release. "Our results reflect broad consumer demand across both brands, healthy direct-to-consumer growth, and strong consumer response to new product innovation."

For the full year, Crocs ( CROX ) now expects adjusted EPS between $13.70 and $14, compared with its previous outlook range of $13.20 to $13.75. The company is now guiding for 2026 revenue to be up 1% to 2%, compared with the prior guidance of down 1% to up 1%. The Street is projecting non-GAAP EPS of $13.73.

Last month, Nike's ( NKE ) fiscal fourth-quarter revenue fell year over year, while the sportswear company's earnings got a boost from expected tariff refunds.

Crocs' ( CROX ) board recently approved a $1.5 billion increase to its share buyback authorization, making roughly $2 billion available for repurchases.

Price: 122.34, Change: -11.18, Percent Change: -8.37