CROCS: OPERATING INCOME ROSE 40.6% TO $291.9M INCLUDING $64.1M OF TARIFF REFUNDS; ADJUSTED OPERATING INCOME ROSE 11.7% TO $232.0M ON REVENUE UP 4.6%
By Pau Almar · Published
Q3 2026 · 29 OCTOBER 2026
Crocs, Inc. reported third-quarter revenue of $1,042.6m, up 4.6%, and income from operations of $291.9m, up 40.6%. The GAAP gross margin of 66.2% includes $64.1m of IEEPA tariff refunds. On the company's adjusted basis, gross margin was 60.3% against 58.5%, and operating income was $232.0m, up 11.7%. Adjusted operating margin was 22.3% against 20.8%.
The guide given with the second quarter was revenue about flat, an adjusted operating margin of about 21.5% and adjusted diluted EPS of $3.20 to $3.30. The quarter printed +4.6%, 22.3% and $3.69. The full year guide moved to revenue up about 3%, from up 1% to 2%, and adjusted EPS of $14.45 to $14.65, from $13.70 to $14.00.
// KEY NUMBERS
Q3 2026 · three months to 30 September 2026
| Revenue | USD 1,042.6m |
|---|---|
| Reported growth | +4.6% |
| Constant-currency growth | +4.6% |
| Gross margin | 66.2% |
| Operating margin | 28% |
| Net income | USD 216.8m |
Adjusted operating income for the nine months was $733.3m against $740.1m, down 0.9%, and adjusted operating margin was 23.3% against 24.0%. Adjusted EPS rose 10.2% over the same period because diluted shares fell 10.4%. In the quarter, adjusted EPS rose 26.4% and adjusted net income rose 12.4%.
Crocs Brand international DTC grew 24.1% and added $40.7m. Crocs Brand North America fell 2.1%, with wholesale down 4.9%. HEYDUDE grew 6.1%; its wholesale rose 14.0% and its DTC 0.1%. The fourth-quarter guide asks HEYDUDE for growth of 10% to 12%.
Free cash flow for the nine months was $507.6m and repurchases including excise tax were $506.2m. Borrowings were $1.29bn against $1.32bn a year earlier. Inventories rose 4.0%, to $413.0m, against revenue growth of 4.6%.
Source: Crocs, Inc. press release, Form 8-K Exhibit 99.1, 29 October 2026 ↗
Analysis by Pau Almar, VGR.
VGR analysis is an independent commercial reading of publicly disclosed company information, written from the perspective of a fashion retail sector operator. It is not investment research and it is not advice to buy, sell or hold any security. VGR is not a regulated financial adviser. Figures are taken from official company materials; figures derived by VGR are labelled as such. Readers should reach their own conclusions and take professional advice where appropriate.