Crocs, Inc. Reports Solid Second Quarter 2025 Results Led By Both Brands
Crocs (NASDAQ: CROX) reported Q2 2025 financial results with consolidated revenues of $1.149 billion, up 3.4% year-over-year. The quarter marked the company's highest-ever gross profit, with margins improving to 61.7%. However, the company reported a significant loss from operations of $428 million due to HEYDUDE brand impairment charges totaling $737 million.
The Crocs brand saw revenue growth of 5.0% to $960 million, with strong international performance (+18.1%), while HEYDUDE revenues declined 3.9% to $190 million. The company returned value to shareholders through $133 million in share repurchases and $105 million in debt reduction. Looking ahead, Crocs expects Q3 2025 revenues to decline 9-11% with adjusted operating margins of 18-19%.
Crocs (NASDAQ: CROX) ha comunicato i risultati finanziari del secondo trimestre 2025 con ricavi consolidati pari a 1,149 miliardi di dollari, in aumento del 3,4% rispetto all'anno precedente. Il trimestre ha segnato il margine lordo più alto mai raggiunto dall'azienda, con un miglioramento delle marginalità al 61,7%. Tuttavia, la società ha registrato una perdita operativa significativa di 428 milioni di dollari a causa di oneri di svalutazione del marchio HEYDUDE per un totale di 737 milioni di dollari.
Il marchio Crocs ha registrato una crescita dei ricavi del 5,0%, raggiungendo 960 milioni di dollari, con una forte performance internazionale (+18,1%), mentre i ricavi di HEYDUDE sono diminuiti del 3,9% a 190 milioni di dollari. L'azienda ha restituito valore agli azionisti attraverso 133 milioni di dollari in riacquisto di azioni e 105 milioni di dollari in riduzione del debito. Guardando al futuro, Crocs prevede per il terzo trimestre 2025 un calo dei ricavi compreso tra il 9% e l'11% con margini operativi rettificati tra il 18% e il 19%.
Crocs (NASDAQ: CROX) reportó los resultados financieros del segundo trimestre de 2025 con ingresos consolidados de , un aumento del 3,4% interanual. El trimestre marcó el mayor beneficio bruto en la historia de la compañía, con márgenes que mejoraron hasta el 61,7%. Sin embargo, la empresa reportó una pérdida operativa significativa de 428 millones de dólares debido a cargos por deterioro de la marca HEYDUDE por un total de 737 millones de dólares.
La marca Crocs experimentó un crecimiento de ingresos del 5,0%, alcanzando 960 millones de dólares, con un sólido desempeño internacional (+18,1%), mientras que los ingresos de HEYDUDE disminuyeron un 3,9% hasta 190 millones de dólares. La compañía devolvió valor a los accionistas mediante recompras de acciones por 133 millones de dólares y reducción de deuda por 105 millones de dólares. De cara al futuro, Crocs espera que los ingresos del tercer trimestre de 2025 disminuyan entre un 9% y un 11%, con márgenes operativos ajustados del 18% al 19%.
크록� (NASDAQ: CROX)� 2025� 2분기 재무 실적� 발표하며, 통합 매출� 11� 4900� 달러� 전년 대� 3.4% 증가했다� 밝혔습니�. 이번 분기� 회사 역사� 최고 총이익을 기록했으�, 마진은 61.7%� 개선되었습니�. 그러� HEYDUDE 브랜� 손상차손 7� 3700� 달러� 인해 영업손실� 4� 2800� 달러� 달했습니�.
크록� 브랜� 매출은 5.0% 증가� 9� 6000� 달러� 기록했으�, 국제 시장에서 강한 실적(+18.1%)� 보였습니�. 반면 HEYDUDE 매출은 3.9% 감소� 1� 9000� 달러였습니�. 회사� 1� 3300� 달러 규모� 자사� 매입� 1� 500� 달러� 부� 감소� 통해 주주 가치를 환원했습니다. 앞으� 크록스는 2025� 3분기 매출� 9-11% 감소� 것으� 예상하며, 조정 영업 마진은 18-19% 수준� � 것으� 전망하고 있습니다.
Crocs (NASDAQ : CROX) a publié ses résultats financiers du deuxième trimestre 2025 avec un chiffre d'affaires consolidé de 1,149 milliard de dollars, en hausse de 3,4 % d'une année sur l'autre. Ce trimestre a marqué le bénéfice brut le plus élevé jamais atteint par l'entreprise, avec une amélioration des marges à 61,7%. Cependant, la société a enregistré une perte d'exploitation importante de 428 millions de dollars en raison de charges de dépréciation de la marque HEYDUDE totalisant 737 millions de dollars.
La marque Crocs a connu une croissance de ses revenus de 5,0 % pour atteindre 960 millions de dollars, avec une forte performance à l'international (+18,1 %), tandis que les revenus de HEYDUDE ont diminué de 3,9 % pour s'établir à 190 millions de dollars. L'entreprise a rendu de la valeur aux actionnaires grâce à des rachats d'actions pour 133 millions de dollars et une réduction de dette de 105 millions de dollars. Pour l'avenir, Crocs prévoit une baisse des revenus du troisième trimestre 2025 de 9 à 11 % avec des marges opérationnelles ajustées entre 18 et 19 %.
Crocs (NASDAQ: CROX) meldete die Finanzergebnisse für das zweite Quartal 2025 mit konsolidierten Umsätzen von 1,149 Milliarden US-Dollar, was einem Anstieg von 3,4 % gegenüber dem Vorjahr entspricht. Das Quartal verzeichnete den bisher höchsten Bruttogewinn des Unternehmens, wobei die Margen auf 61,7% anstiegen. Allerdings meldete das Unternehmen einen erheblichen operativen Verlust von 428 Millionen US-Dollar aufgrund von Wertminderungsaufwendungen der Marke HEYDUDE in Höhe von insgesamt 737 Millionen US-Dollar.
Die Crocs-Marke verzeichnete ein Umsatzwachstum von 5,0 % auf 960 Millionen US-Dollar, mit starker internationaler Performance (+18,1 %), während die Umsätze von HEYDUDE um 3,9 % auf 190 Millionen US-Dollar zurückgingen. Das Unternehmen schuf Wert für die Aktionäre durch Aktienrückkäufe im Wert von 133 Millionen US-Dollar und Schuldenreduzierung in Höhe von 105 Millionen US-Dollar. Für die Zukunft erwartet Crocs für das dritte Quartal 2025 einen Umsatzrückgang von 9-11 % bei bereinigten operativen Margen von 18-19 %.
- Record quarterly gross profit with margins improving to 61.7%
- Strong international revenue growth of 18.1% for Crocs brand
- Returned $238 million to shareholders through share repurchases and debt reduction
- Direct-to-consumer revenues grew 4.0% overall
- Implemented $50 million in cost savings measures
- $737 million in impairment charges for HEYDUDE trademark and goodwill
- HEYDUDE brand revenues declined 3.9% to $190 million
- North America revenues decreased 6.5% for Crocs brand
- Projected 9-11% revenue decline for Q3 2025
- Operating margin expected to be negatively impacted by 170 basis points from tariffs
Insights
Crocs reported mixed Q2 results with record gross profit but significant HEYDUDE brand impairments while reducing guidance amid market uncertainty.
Crocs delivered a 3.4% revenue increase to
The diverging performance between brands is telling. The core Crocs brand grew
Management's defensive approach is evident in their actions: implementing
The financial discipline continues with
The adjusted metrics tell a different story than the headline loss: adjusted operating income of
"We reported a solid second quarter with both our Crocs and HEYDUDE brands contributing to our performance, while delivering the highest ever gross profit quarter in company history. Our strongcash flow generation enabled us to return shareholder value through
Mr. Rees continued, "While we are pleased by this performance, the current operating environment is uncertain and challenging to predict. Against this, we have chosen to focus on managing expenses including the
Amounts referred to as "Adjusted" or "Non-GAAP" are Non-GAAP measures and include adjustments that are described under the heading "Reconciliation of GAAP Measures to Non-GAAP Measures." A reconciliation of these amounts to their GAAP counterparts is contained in the schedules below.
SecondQuarter 2025 Operating Results (Compared to the Same Period Last Year)
- Consolidated revenues were
, an increase of$1,149 million 3.4% , or2.7% on a constant currency basis. Direct-to-consumer ("DTC") revenues grew4.0% , or3.4% on a constant currency basis. Wholesale revenues increased2.8% , or2.0% on a constant currency basis. - Gross margin, on a reported and adjusted basis, grew 30 basis points to
61.7% compared to61.4% . - Selling, general, and administrative expenses ("SG&A") of
increased$1,136 million 219.0% from , and represented$356 million 98.9% of revenues compared to32.0% . The increase in SG&A is largely driven by noncash impairment charges related to the indefinite-lived HEYDUDE trademark and HEYDUDE Brand reporting unit goodwill of and$430 million , respectively, during the three months ended June 30, 2025. Adjusted SG&A of$307 million increased$399 million 12.1% from and represented$356 million 34.7% of revenues compared to32.0% . - Loss from operations of
decreased$428 million 231.2% from income from operations of , resulting in operating margin loss of$326 million 37.2% compared to29.3% . The loss from operations is driven by asset impairments, as described above. Adjusted income from operations of decreased$309 million 5.0% from , resulting in adjusted operating margin of$326 million 26.9% compared to29.3% . - Diluted loss per share of
decreased$8.82 334.0% from diluted earnings per share of . The loss per share is driven by asset impairments, as described above. Adjusted diluted earnings per share of$3.77 increased$4.23 5.5% from .$4.01 - During the quarter, we repaid
of debt. We repurchased approximately 1.3 million shares for$105 million at the average share price of$133 million . At quarter-end, approximately$102.24 of share repurchase authorization remained available for future repurchases.$1.1 billion
SecondQuarter 2025 Brand Summary (Compared to Same Period Last Year)
- Crocs Brand: Revenues increased
5.0% to , or$960 million 4.2% on a constant currency basis.- Channel
- DTC revenues increased
3.4% to , or$495 million 2.7% on a constant currency basis. - Wholesale revenues increased
6.8% to , or$465 million 5.9% on a constant currency basis.
- DTC revenues increased
- Geography
North America revenues decreased6.5% to , or$457 million 6.4% on a constant currency basis.- International revenues increased
18.1% to , or$502 million 16.4% on a constant currency basis.
- Channel
- HEYDUDE Brand: Revenues decreased
3.9% to , or$190 million 4.2% on a constant currency basis.- Channel
- DTC revenues increased
7.6% to , or$90 million 7.5% on a constant currency basis. - Wholesale revenues decreased
12.4% to , or$100 million 12.8% on a constant currency basis.
- DTC revenues increased
- Channel
Balance Sheet and Cash Flow (June 30, 2025, as compared to June 30, 2024)
- Cash and cash equivalents were
compared to$201 million .$168 million - Inventories were
compared to$405 million .$377 million - Total borrowings were
compared to$1,379 million .$1,530 million - Capital expenditures were
compared to$32 million .$33 million
Financial Outlook
ThirdQuarter 2025
Given the continued uncertainty from evolving global trade policy and related pressures around the consumer, we will only be providing third quarter guidance.
For the third quarter of 2025, we expect:
- Revenues to be down approximately
11% to9% compared to the third quarter of 2024, at currency rates as of August 4, 2025. - Adjusted operating margin of approximately
18% to19% , including an anticipated negative impact of approximately 170 basis points from announced and pending tariffs.
Conference Call Information
A conference call to discuss second quarter results is scheduled for today, Thursday, August7, 2025, at 8:30 am ET. To receive conference call details, please register at the Investor Relations section of the Crocs website, investors.crocs.com. The webcast will also be available live and on replay through August7, 2026, at this site.
About Crocs, Inc.:
Crocs, Inc. (Nasdaq: CROX), headquartered in
Forward Looking Statements
This press release includes estimates, projections, and statements relating to our business plans, commitments, objectives, and expected operating results that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
These statements include, but are not limited to, statements regarding our financial condition, brand and liquidity outlook, and expectations regarding our future financial results, share repurchases, our strategy, plans, objectives, expectations (financial or otherwise) and intentions, future financial results and growth potential, statements regarding future financial outlook and future profitability, cash flows, and brand strength, anticipated product portfolio and our ability to deliver sustained, highly profitable growth and create significant shareholder value. These statements involve known and unknown risks, uncertainties, and other factors, which may cause our actual results, performance, or achievements to be materially different from any future results, performances, or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include the factors described in our most recent Annual Report on Form 10-K under the heading "Risk Factors" and our subsequent filings with the Securities and Exchange Commission. Readers are encouraged to review that section and all other disclosures appearing in our filings with the Securities and Exchange Commission.
All information in this document speaks only as of August7, 2025. We do not undertake any obligation to update publicly any forward-looking statements, whether as a result of the receipt of new information, future events, or otherwise, except as required by applicable law.
Category:Investors
CROCS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share data) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Revenues | $ 1,149,373 | $ 1,111,502 | $ 2,086,706 | $ 2,050,135 | |||
Cost of sales | 440,537 | 429,586 | 836,321 | 846,142 | |||
Gross profit | 708,836 | 681,916 | 1,250,385 | 1,203,993 | |||
Selling, general and administrative | 1,136,352 | 356,178 | 1,454,927 | 651,826 | |||
Income (loss) from operations | (427,516) | 325,738 | (204,542) | 552,167 | |||
Foreign currency gains (losses), net | 434 | (1,323) | 5,307 | (3,596) | |||
Interest income | 371 | 1,126 | 704 | 1,542 | |||
Interest expense | (22,523) | (29,161) | (45,289) | (59,724) | |||
Other income, net | 627 | 45 | 152 | 65 | |||
Income (loss) before income taxes | (448,607) | 296,425 | (243,668) | 490,454 | |||
Income tax expense | 43,675 | 67,518 | 88,511 | 109,093 | |||
Net income (loss) | $ (492,282) | $ 228,907 | $ (332,179) | $ 381,361 | |||
Net income (loss) per common share: | |||||||
Basic | $ (8.82) | $ 3.79 | $ (5.94) | $ 6.31 | |||
Diluted | $ (8.82) | $ 3.77 | $ (5.94) | $ 6.26 | |||
Weighted average common shares | |||||||
Basic | 55,783 | 60,320 | 55,946 | 60,442 | |||
Diluted | 55,783 | 60,766 | 55,946 | 60,910 |
CROCS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share and par value amounts) | |||
June 30, | December 31, | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 200,611 | $ 180,485 | |
Accounts receivable, net of allowances of | 417,426 | 257,657 | |
Inventories | 405,136 | 356,254 | |
Income taxes receivable | 6,500 | 4,046 | |
Other receivables | 22,192 | 22,204 | |
Prepaid expenses and other assets | 49,942 | 51,623 | |
Total current assets | 1,101,807 | 872,269 | |
Property and equipment, net of accumulated depreciation of | 249,145 | 244,335 | |
Intangible assets, net | 1,335,462 | 1,777,080 | |
Goodwill | 404,695 | 711,491 | |
Deferred tax assets, net | 971,974 | 872,350 | |
Restricted cash | 3,570 | 3,193 | |
Right-of-use assets | 349,268 | 307,228 | |
Other assets | 34,645 | 24,207 | |
Total assets | $ 4,450,566 | $ 4,812,153 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 263,339 | $ 264,901 | |
Accrued expenses and other liabilities | 272,571 | 298,068 | |
Income taxes payable | 96,021 | 108,688 | |
Current operating lease liabilities | 82,918 | 68,551 | |
Total current liabilities | 714,849 | 740,208 | |
Deferred tax liabilities, net | 1,139 | 4,086 | |
Long-term income taxes payable | 618,082 | 595,434 | |
Long-term borrowings | 1,379,112 | 1,349,339 | |
Long-term operating lease liabilities | 311,549 | 283,406 | |
Other liabilities | 4,698 | 3,948 | |
Total liabilities | 3,029,429 | 2,976,421 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Common stock, par value | 111 | 110 | |
Treasury stock, at cost, 55.9 million and 53.9million shares, respectively | (2,653,423) | (2,453,473) | |
Additional paid-in capital | 879,940 | 859,904 | |
Retained earnings | 3,229,657 | 3,561,836 | |
Accumulated other comprehensive loss | (35,148) | (132,645) | |
Total stockholders' equity | 1,421,137 | 1,835,732 | |
Total liabilities and stockholders' equity | $ 4,450,566 | $ 4,812,153 | |
CROCS,INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) | |||
Six Months Ended June 30, | |||
2025 | 2024 | ||
Cash flows from operating activities: | |||
Net income (loss) | $ (332,179) | $ 381,361 | |
Adjustments to reconcile net income (loss) to net cash provided by operating | |||
Depreciation and amortization | 38,011 | 33,705 | |
Operating lease cost | 49,738 | 40,654 | |
Share-based compensation | 20,036 | 17,744 | |
Asset impairment | 738,115 | 24,081 | |
Deferred taxes (1) | 13,956 | 6,959 | |
Other non-cash items (1) | 8,428 | 11,558 | |
Changes in operating assets and liabilities, net of acquired assets and assumed | |||
Accounts receivable | (147,242) | (119,159) | |
Inventories | (49,824) | 5,172 | |
Prepaid expenses and other assets | (12,160) | 2,247 | |
Accounts payable, accrued expenses and other liabilities | (26,467) | (19,034) | |
Right-of-use assets and operating lease liabilities | (49,821) | (42,069) | |
Income taxes | (32,026) | 30,443 | |
Cash provided by operating activities | 218,565 | 373,662 | |
Cash flows from investing activities: | |||
Purchases of property, equipment, and software | (31,946) | (32,806) | |
Cash used in investing activities | (31,946) | (32,806) | |
Cash flows from financing activities: | |||
Proceeds from borrowings | 539,000 | 78,156 | |
Repayments of borrowings | (514,000) | (216,405) | |
Repurchases of common stock, including excise tax | (194,137) | (175,011) | |
Repurchases of common stock for tax withholding | (4,104) | (5,913) | |
Other (1) | � | (1,005) | |
Cash used in financing activities | (173,241) | (320,178) | |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 7,125 | (2,747) | |
Net change in cash, cash equivalents, and restricted cash | 20,503 | 17,931 | |
Cash, cash equivalents, and restricted cash—beginning of period | 183,678 | 153,097 | |
Cash, cash equivalents, and restricted cash—end of period | $ 204,181 | $ 171,028 |
(1) | Amounts for the six months ended June 30, 2024, have been reclassified to conform to current period presentation. |
CROCS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
In addition to financial measures presented on the basis of accounting principles generally accepted in
We also present certain information related to our current period results of operations through "constant currency," which is a non-GAAP financial measure and should be viewed as a supplement to our results of operations and presentation of reportable segments under GAAP. Constant currency represents current period results that have been retranslated using exchange rates used in the prior year comparative period to enhance the visibility of the underlying business trends excluding the impact of foreign currency exchange rate fluctuations.
Management uses non-GAAP results to assist in comparing business trends from period to period on a consistent basis in communications with the board of directors, stockholders, analysts, and investors concerning our financial performance. We believe that these non-GAAP measures, in addition to corresponding GAAP measures, are useful to investors and other users of our condensed consolidated financial statements as an additional tool for evaluating operating performance and trends by providing meaningful information about operations compared to our peers by excluding the impacts of various differences. The calculation of our non-GAAP financial metrics may vary from company to company. As a result, our calculation of these metrics may not be comparable to similarly titled metrics used by other companies.
Management believes Non-GAAP gross profit, Non-GAAP gross margin, and Non-GAAP gross margin by brand are useful performance measures for investors because they provide investors with a means of comparing these measures between periods without the impact of certain expenses that we believe are not indicative of our routine cost of sales. Our routine cost of sales includes core product costs and distribution expenses primarily related to receiving, inspecting, warehousing, and packaging product and transportation costs associated with delivering products from distribution centers. Costs not indicative of our routine cost of sales may or may not be recurring in nature and include costs to expand and transition to new distribution centers.
Management believes Non-GAAP selling, general and administrative expenses and Non-GAAP selling, general and administrative expenses as a percent of revenues are useful performance measures for investors because they provide a more meaningful comparison to prior periods and may be indicative of the level of such expenses to be incurred in future periods. These measures exclude the impact of certain expenses not related to our normal operations that are expected to be non-recurring in nature, such as impairment charges.
Non-GAAP income from operations and Non-GAAP operating margin reflect the impact of Non-GAAP gross profit and Non-GAAP selling, general, and administrative expenses, as discussed above. We believe these are useful performance measures for investors because they provide a basis to compare performance in the period to prior periods.
Non-GAAP income before income taxes reflects the impact of Non-GAAP income from operations, as discussed above. We believe this is a useful performance measure for investors because it provides a basis to compare performance in the period to prior periods.
Management believes Non-GAAP income tax expense is a useful performance measure for investors because it provides a basis to compare our tax rates to historical tax rates, and because the adjustment is necessary in order to calculate Non-GAAP net income.
Management believes Non-GAAP effective tax rate is a useful performance measure for investors because it provides an ongoing effective tax rate that they can use for historical comparisons and forecasting.
Management believes Non-GAAP net income is a useful performance measure for investors because it focuses on underlying operating results and trends and improves the comparability of our results to prior periods. This measure reflects the impact of Non-GAAP gross profit, Non-GAAP selling, general, and administrative expenses, and Non-GAAP income tax expense, as described above.
Management believes Non-GAAP basic and diluted net income per common share are useful performance measures for investors because they focus on underlying operating results and trends and improve the comparability of our results to prior periods. These measures reflect the impact of Non-GAAP gross profit, Non-GAAP selling, general, and administrative expenses, and Non-GAAP income tax expense, as described above.
Management believes Net leverage is a useful performance measure for investors because it provides a measure of our financial strength and liquidity.
Free cash flow is calculated as 'Cash provided by operating activities' less 'Purchases of property, equipment, and software.' Management believes free cash flow is useful for investors because it provides a clear measure of our ability to generate cash for discretionary uses such as funding growth opportunities, repurchasing shares, and reducing debt.
For thethree and six months ended June 30, 2025, management believes it is helpful to evaluate our results excluding the impacts of various adjustments relating to special or non-recurring items. Investors should not consider these non-GAAP measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
Non-GAAP Financial Guidance
Our forward-looking guidance for consolidated "adjusted operating margin" represents non-GAAP financial measures that exclude or otherwise have been adjusted for special items from our
We are unable to reconcile forward-looking adjusted measures to their nearest
CROCS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (UNAUDITED) | |||||||
Non-GAAP gross profit and gross margin reconciliation: | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
(in thousands) | |||||||
GAAP revenues | $ 1,149,373 | $ 1,111,502 | $ 2,086,706 | $ 2,050,135 | |||
GAAP gross profit | $ 708,836 | $ 681,916 | $ 1,250,385 | $ 1,203,993 | |||
Distribution centers (1) | � | � | � | 3,242 | |||
Non-GAAP gross profit | $ 708,836 | $ 681,916 | $ 1,250,385 | $ 1,207,235 | |||
GAAP gross margin | 61.7% | 61.4% | 59.9% | 58.7% | |||
Non-GAAP gross margin | 61.7% | 61.4% | 59.9% | 58.9% |
(1) | During the six months ended June 30, 2024, adjustments primarily relate to costs to transition to our new HEYDUDE distribution center in |
Non-GAAP selling, general and administrative reconciliation: | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
(in thousands) | |||||||
GAAP revenues | $ 1,149,373 | $ 1,111,502 | $ 2,086,706 | $ 2,050,135 | |||
GAAP selling, general and | $ 1,136,352 | $ 356,178 | $ 1,454,927 | $ 651,826 | |||
Impairment of indefinite-lived | (430,000) | � | (430,000) | � | |||
Impairment of goodwill (2) | (307,000) | � | (307,000) | � | |||
Impairment related to information | � | � | � | (18,172) | |||
Impairment related to distribution | � | � | � | (6,933) | |||
Total adjustments | (737,000) | � | (737,000) | (25,105) | |||
Non-GAAP selling, general | $ 399,352 | $ 356,178 | $ 717,927 | $ 626,721 | |||
GAAP selling, general and | 98.9% | 32.0% | 69.7% | 31.8% | |||
Non-GAAP selling, general and | 34.7% | 32.0% | 34.4% | 30.6% |
(1) | Represents an impairment of the HEYDUDE indefinite-lived trademark. |
(2) | Represents an impairment of the HEYDUDE Brand reporting unit goodwill. |
(3) | Represents an impairment of information technology systems related to the HEYDUDE integration. |
(4) | Primarily represents an impairment of the right-of-use assets for our formerHEYDUDE Brand warehouses in |
(5) | Non-GAAP selling, general and administrative expenses are presented gross of tax. |
Non-GAAP income from operations and operating margin reconciliation: | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
(in thousands) | |||||||
GAAP revenues | $ 1,149,373 | $ 1,111,502 | $ 2,086,706 | $ 2,050,135 | |||
GAAP income (loss) from operations | $ (427,516) | $ 325,738 | $ (204,542) | $ 552,167 | |||
Non-GAAP gross profit adjustments (1) | � | � | � | 3,242 | |||
Non-GAAP selling, general and | 737,000 | � | 737,000 | 25,105 | |||
Non-GAAP income from operations | $ 309,484 | $ 325,738 | $ 532,458 | $ 580,514 | |||
GAAP operating margin | (37.2)% | 29.3% | (9.8)% | 26.9% | |||
Non-GAAP operating margin | 26.9% | 29.3% | 25.5% | 28.3% |
(1) | See 'Non-GAAP gross profit and gross margin reconciliation' above for more details. |
(2) | See 'Non-GAAP selling, general and administrative expenses and selling, general and administrative expenses as a percent of revenues reconciliation' above for more details. |
Non-GAAP income tax expense (benefit) and effective tax rate reconciliation: | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
(in thousands) | |||||||
GAAP income (loss) from operations | $ (427,516) | $ 325,738 | $ (204,542) | $ 552,167 | |||
GAAP income (loss) before income | (448,607) | 296,425 | (243,668) | 490,454 | |||
Non-GAAP income from operations (1) | $ 309,484 | $ 325,738 | $ 532,458 | $ 580,514 | |||
GAAP non-operating income | |||||||
Foreign currency gains (losses), net | 434 | (1,323) | 5,307 | (3,596) | |||
Interest income | 371 | 1,126 | 704 | 1,542 | |||
Interest expense | (22,523) | (29,161) | (45,289) | (59,724) | |||
Other income, net | 627 | 45 | 152 | 65 | |||
Non-GAAP income before income | $ 288,393 | $ 296,425 | $ 493,332 | $ 518,801 | |||
GAAP income tax expense | $ 43,675 | $ 67,518 | $ 88,511 | $ 109,093 | |||
Tax effect of non-GAAP operating | 29,942 | � | 29,942 | 7,141 | |||
Impact of intra-entity IP transactions | (22,701) | (14,729) | (32,273) | (25,167) | |||
Non-GAAP income tax expense | $ 50,916 | $ 52,789 | $ 86,180 | $ 91,067 | |||
GAAP effective income tax rate | (9.7)% | 22.8% | (36.3)% | 22.2% | |||
Non-GAAP effective income tax rate | 17.7% | 17.8% | 17.5% | 17.6% |
(1) | See 'Non-GAAP income from operations and operating margin reconciliation' above for more details. |
(2) | In the fourth quarter of 2024, and previously in 2023, 2021 and 2020, we made changes to our international legal structure, including an intra-entity transaction related to certain intellectual property rights, primarily to align with current and future international operations. The transactions resulted in a step-up in the tax basis of intellectual property rights and correlated increases in foreign deferred tax assets based on the fair value of the transferred intellectual property rights. This adjustment represents the current period impact of these transactions. |
Non-GAAP net income per share reconciliation: | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
(in thousands, except per share data) | |||||||
Numerator: | |||||||
GAAP net income (loss) | $ (492,282) | $ 228,907 | $ (332,179) | $ 381,361 | |||
Non-GAAP gross profit | � | � | � | 3,242 | |||
Non-GAAP selling, general and | 737,000 | � | 737,000 | 25,105 | |||
Tax effect of non-GAAP | (7,241) | 14,729 | 2,331 | 18,026 | |||
Non-GAAP net income | $ 237,477 | $ 243,636 | $ 406,310 | $ 427,734 | |||
Denominator: | |||||||
GAAP weighted average common | 55,783 | 60,320 | 55,946 | 60,442 | |||
Plus: GAAP dilutive effect of stock | � | 446 | � | 468 | |||
GAAP weighted average common | 55,783 | 60,766 | 55,946 | 60,910 | |||
GAAP weighted average common | 55,783 | 55,946 | |||||
Plus: dilutive effect of stock | 365 | 379 | |||||
Non-GAAP weighted average | 56,148 | 56,325 | |||||
GAAP net income (loss) per | |||||||
Basic | $ (8.82) | $ 3.79 | $ (5.94) | $ 6.31 | |||
Diluted | $ (8.82) | $ 3.77 | $ (5.94) | $ 6.26 | |||
Non-GAAP net income per common | |||||||
Basic | $ 4.26 | $ 4.04 | $ 7.26 | $ 7.08 | |||
Diluted | $ 4.23 | $ 4.01 | $ 7.21 | $ 7.02 |
(1) | See 'Non-GAAP gross profit and gross margin reconciliation' above for more information. |
(2) | See 'Non-GAAP selling, general and administrative expenses and selling, general and administrative expenses as a percent of revenues reconciliation' above for more information. |
(3) | See 'Non-GAAP income tax expense (benefit) and effective tax rate reconciliation' above for more information. |
Free cash flow reconciliation: | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
(in thousands) | |||||||
Cash provided by operating activities | $ 285,800 | $ 401,236 | $ 218,565 | $ 373,662 | |||
Purchases of property, equipment, | (16,571) | (17,056) | (31,946) | (32,806) | |||
Free cash flow | $ 269,229 | $ 384,180 | $ 186,619 | $ 340,856 |
CROCS, INC. AND SUBSIDIARIES REVENUES BY SEGMENT, CHANNEL, AND GEOGRAPHY (UNAUDITED) | |||||||||||||||
Three Months Ended | Six Months Ended | % Change | ConstantCurrency % Change(1) | ||||||||||||
Favorable (Unfavorable) | |||||||||||||||
2025 | 2024 | 2025 | 2024 | Q22025- | YTD | Q22025- | YTD | ||||||||
($ inthousands) | |||||||||||||||
Crocs Brand: | |||||||||||||||
Wholesale | $ 166,528 | $ 173,987 | $ 337,210 | $ 354,325 | (4.3)% | (4.8)% | (4.2)% | (4.5)% | |||||||
Direct-to-consumer | 290,602 | 314,728 | 488,437 | 517,304 | (7.7)% | (5.6)% | (7.6)% | (5.4)% | |||||||
Total | 457,130 | 488,715 | 825,647 | 871,629 | (6.5)% | (5.3)% | (6.4)% | (5.1)% | |||||||
International: | |||||||||||||||
Wholesale | 298,151 | 261,294 | 604,274 | 542,959 | 14.1% | 11.3% | 12.6% | 12.2% | |||||||
Direct-to-consumer | 204,309 | 163,980 | 291,278 | 243,218 | 24.6% | 19.8% | 22.6% | 19.8% | |||||||
Total International | 502,460 | 425,274 | 895,552 | 786,177 | 18.1% | 13.9% | 16.4% | 14.5% | |||||||
Total Crocs Brand | $ 959,590 | $ 913,989 | $ 1,721,199 | $ 1,657,806 | 5.0% | 3.8% | 4.2% | 4.2% | |||||||
Crocs Brand: | |||||||||||||||
Wholesale | $ 464,679 | $ 435,281 | $ 941,484 | $ 897,284 | 6.8% | 4.9% | 5.9% | 5.6% | |||||||
Direct-to-consumer | 494,911 | 478,708 | 779,715 | 760,522 | 3.4% | 2.5% | 2.7% | 2.6% | |||||||
Total Crocs Brand | 959,590 | 913,989 | 1,721,199 | 1,657,806 | 5.0% | 3.8% | 4.2% | 4.2% | |||||||
HEYDUDE Brand: | |||||||||||||||
Wholesale | 99,760 | 113,829 | 210,453 | 248,582 | (12.4)% | (15.3)% | (12.8)% | (15.2)% | |||||||
Direct-to-consumer | 90,023 | 83,684 | 155,054 | 143,747 | 7.6% | 7.9% | 7.5% | 7.8% | |||||||
Total HEYDUDE Brand (3) | 189,783 | 197,513 | 365,507 | 392,329 | (3.9)% | (6.8)% | (4.2)% | (6.8)% | |||||||
Total consolidated revenues | $ 1,149,373 | $ 1,111,502 | $ 2,086,706 | $ 2,050,135 | 3.4% | 1.8% | 2.7% | 2.1% |
(1) | Reflects year over year change as if the current period results were in constant currency, which is a non-GAAP financial measure. See 'Reconciliation of GAAP Measures to Non-GAAP Measures' above for more information. |
(2) | |
(3) | The vast majority of HEYDUDE Brand revenues are derived from |
Investor Contact: | Erinn Murphy, Crocs, Inc. | |
(303) 848-7005 | ||
PR Contact: | Melissa Layton, Crocs, Inc. | |
(303) 848-7885 | ||
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SOURCE Crocs, Inc.