Crocs Shares Rise 25.5% After Q3 Results and Higher Outlook

Crocs shares rose 25.5% to close at $150.26 on Oct. 29, up from $119.69 the previous session. The gain came the day the footwear company posted higher third-quarter revenue and raised its 2026 outlook, even as Crocs-brand sales declined in North America.

Revenue for the quarter ended Sept. 30 increased 4.6% year over year to $1.043 billion. Adjusted diluted earnings per share rose to $3.69 from $2.92 a year earlier.

HEYDUDE revenue grew 6.1% to $170 million, reversing a 5.7% year-over-year decline to $179 million in the second quarter. Crocs-brand revenue rose 11.8% internationally to $434 million, while it fell 2.1% in North America to $438 million.

Crocs now forecasts 2026 revenue growth of about 3%, compared with its previous range of 1% to 2%. It raised its adjusted diluted earnings-per-share outlook to $14.45 to $14.65 from $13.70 to $14.00. The full-year outlook includes a $40 million non-GAAP net benefit, primarily from tariff refunds and cost-reduction initiatives.

For the fourth quarter, Crocs projects revenue growth of 7% to 9% year over year. Its forecast calls for Crocs-brand growth of 6% to 8% and HEYDUDE growth of 10% to 12%, using currency rates as of Oct. 26.

Tariff refunds contributed 630 basis points to the quarter’s year-over-year gross-margin increase. Reported gross margin was 66.2%, compared with adjusted gross margin of 60.3%.

For context, Crocs’ third-quarter results and revised outlook were detailed earlier.