CORRECTED-Crocs Q2 profit beats on DTC growth; boosts buyback

Corrects headline to say profit beats estimates, not rises; Corrects to say revenue beat estimates, not missed, in first bullet of Overview section and in Key Details table

Overview

• US casual footwear maker's Q2 revenue rose 2.6% but beat analyst expectations

• Adjusted EPS for Q2 beat analyst expectations, rising 7.6% year-over-year

• Company raised full-year 2026 outlook and expanded share buyback authorization to $2 bln

Outlook

• Crocs raises full-year 2026 revenue guidance to up 1% to 2% year-over-year

• Company expects full-year 2026 adjusted diluted EPS of $13.70-$14.00, up from prior $13.20-$13.75

• Crocs sees Q3 2026 revenue approximately flat, adjusted diluted EPS $3.20-$3.30

Result Drivers

• DTC GROWTH - Direct-to-consumer revenues rose 12% overall, with Crocs Brand DTC up 12.9% and HEYDUDE DTC up 7.2%

• WHOLESALE DECLINE - Wholesale revenues fell 7.2% overall, with Crocs Brand down 5.0% and HEYDUDE down 17.2%

• INTERNATIONAL STRENGTH - International revenues for Crocs Brand rose 7.8%, offsetting flat growth in North America

Company press release: ID:nPnbMTHXa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 7 "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 is $127.50, about 4.5% below its July 29 closing price of $133.52

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads

• July 30 - Adidas Q2 revenue rises 14% on DTC and e-commerce growth

• July 28 - Rocky Brands Q2 profit beats on on tariff refunds, strong demand

• July 29 - VF Corp beats Q1 revenue estimates, raises FY27 outlook

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)