Track market-moving stories before they get noisy

Crocs (CROX - Free Report) closed the most recent trading day at $117.42, moving +1.22% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.38% for the day. Elsewhere, the Dow lost 0.51%, while the tech-heavy Nasdaq lost 0.29%.

The footwear company's stock has dropped by 13.54% in the past month, falling short of the Consumer Discretionary sector's gain of 1.41% and the S&P 500's gain of 2.08%.

The investment community will be paying close attention to the earnings performance of Crocs in its upcoming release. It is anticipated that the company will report an EPS of $3.3, marking a 13.01% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1 billion, indicating a 0.72% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $13.95 per share and a revenue of $4.1 billion, demonstrating changes of +11.51% and +1.4%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Crocs. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% lower. At present, Crocs boasts a Zacks Rank of #3 (Hold).

In the context of valuation, Crocs is at present trading with a Forward P/E ratio of 8.31. This expresses a discount compared to the average Forward P/E of 14.83 of its industry.

It is also worth noting that CROX currently has a PEG ratio of 0.97. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. CROX's industry had an average PEG ratio of 1.92 as of yesterday's close.

The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 98, placing it within the top 40% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Crocs (CROX - Free Report) Founded in 1999 and based in Broomfield, CO, Crocs, Inc. is one of the leading footwear brands with its focus on comfort and style. Famous for its iconic clog material, Crocs’ simple design and great comfort were an instant hit among consumers. The company offers a wide variety of footwear products including sandals, wedges, flips and slides that cater to people of all ages.

CROX is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 8.26; value investors should take notice.

For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.28 to $13.95 per share. CROX boasts an average earnings surprise of +13.6%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, CROX should be on investors' short list.

Crocs' diversification initiatives reduce revenue and free cash flow volatility, providing catalysts for a potential valuation multiple expansion due to lower cost of capital. Despite the stock price decline after Crocs reported its Q2 2026 earnings, this is a strong quarterly result as stability and resiliency are currently more important for the company than growth. During the Q2 2026 earnings call, Crocs announced that its board of directors authorized an additional $1.5 billion share buyback program.

The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Crocs (CROX - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question.

Crocs is one of 260 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #8 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Crocs is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for CROX's full-year earnings has moved 2.1% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, CROX has gained about 47.2% so far this year. Meanwhile, stocks in the Consumer Discretionary group have lost about 5.9% on average. This means that Crocs is performing better than its sector in terms of year-to-date returns.

Another stock in the Consumer Discretionary sector, Superior Group (SGC - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 31.5%.

Over the past three months, Superior Group's consensus EPS estimate for the current year has increased 9.1%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Crocs belongs to the Textile - Apparel industry, a group that includes 22 individual companies and currently sits at #93 in the Zacks Industry Rank. Stocks in this group have lost about 2.1% so far this year, so CROX is performing better this group in terms of year-to-date returns. Superior Group is also part of the same industry.

Investors with an interest in Consumer Discretionary stocks should continue to track Crocs and Superior Group. These stocks will be looking to continue their solid performance.

Key Takeaways Crocs is expanding beyond clogs through product innovation, collaborations and lifestyle offerings.HEYDUDE is refreshing products and focusing on direct sales to stabilize its performance.CROX combines cost discipline, supply-chain diversification and digital engagement to support margins. Crocs, Inc. (CROX - Free Report) is focusing on strengthening its brand power, expanding digital and direct-to-consumer reach and driving product innovation to support growth. The company continues to build the Crocs brand through global marketing campaigns, collaborations, personalization and product newness, while expanding beyond its core clogs into sandals and broader lifestyle offerings.

The company follows a portfolio strategy by managing the Crocs brand and HEYDUDE brands. While Crocs remains the key growth engine, efforts are underway to stabilize HEYDUDE’s performance through operational adjustments and a strict focus on direct sales. Its HEYDUDE brand is undergoing a product evolution, with refreshed versions of its top sellers and entirely new styles aimed at attracting younger and more fashion-conscious consumers.

By combining creativity with deep consumer insights, Crocs is strengthening brand appeal and deepening consumer engagement across its direct-to-consumer channels, positioning it for sustainable growth and potential market-share gains. At the same time, Crocs remains focused on protecting profitability through disciplined cost management and operational efficiency. Efforts include optimizing inventory, controlling expenses and limiting promotional activity to support margins. The company is also diversifying its supply chain to mitigate tariff-related risks and reduce its reliance on specific sourcing and manufacturing regions.

Product innovation and personalization remain central to Crocs’ success. The company continues to introduce new designs and product variations while promoting customization through Jibbitz charms, which encourages repeat purchases and deeper consumer engagement. On the innovation front, the company is refreshing its iconic silhouettes with updated materials, colors and comfort features, while introducing product lines in sandals, boots and seasonal footwear. Cost-saving initiatives, disciplined spending and supply-chain efficiencies are enhancing operating flexibility.

CROX’s Price Performance, Valuation and EstimatesCrocs’ shares have gained 40.2% in the past six months against the industry’s 6.3% decline.

Image Source: Zacks Investment Research

From a valuation standpoint, CROX is trading at a forward price-to-earnings ratio of 8.33X compared with the industry’s average of 15.05X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CROX’s 2026 and 2027 earnings per share (EPS) indicates year-over-year growth of 10.7% and 8%, respectively. The company’s EPS estimate for 2026 and 2027 has increased in the past 30 days.

Image Source: Zacks Investment Research

Crocs currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Crocs’ CompetitorsRalph Lauren’s (RL - Free Report) growth strategy focuses on strengthening its luxury lifestyle positioning, expanding its customer base and increasing engagement with younger consumers. The company is investing in its iconic core products while broadening its offerings across high-potential categories. RL is expanding its presence in key international markets, particularly Asia and China, while strengthening its directly operated stores and digital channels. Product innovation, personalized consumer experiences and technology investments, including AI-powered tools, are helping Ralph Lauren improve brand relevance and deepen customer relationships.

Gildan Activewear Inc. (GIL - Free Report) is benefiting from its Sustainable Growth Strategy, which focuses on expanding capacity, driving innovation and advancing ESG initiatives to strengthen competitiveness. GIL is focused on the optimization of manufacturing processes and the implementation of cost-reduction initiatives. Gildan Activewear is expanding its production footprint, which is expected to enhance flexibility, support future demand and generate additional cost efficiencies. It is also simplifying operations by harmonizing supply chains, standardizing IT systems and reducing organizational complexity.

lululemon athletica inc. (LULU - Free Report) focuses on sustaining growth by strengthening its brand, expanding its global customer base and delivering innovative, high-quality products. LULU is emphasizing product innovation, differentiated assortments and deeper consumer engagement across its core categories. lululemon is also expanding its international presence, particularly in China and other high-growth markets, while enhancing its digital and omnichannel capabilities to capitalize on evolving consumer preferences and support growth.

BlackRock Inc. acquired a new position in Crocs, Inc. (NASDAQ:CROX – Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor acquired 4,652,050 shares of the textile maker’s stock, valued at approximately $561,223,000. BlackRock Inc. owned approximately 9.70% of Crocs as of its most recent SEC filing.

Several other institutional investors also recently bought and sold shares of the company. Himalaya Capital Management LLC purchased a new position in shares of Crocs during the fourth quarter valued at $53,720,000. Mitsubishi UFJ Trust & Banking Corp raised its holdings in shares of Crocs by 92.3% in the fourth quarter. Mitsubishi UFJ Trust & Banking Corp now owns 29,982 shares of the textile maker’s stock valued at $2,564,000 after acquiring an additional 14,393 shares in the last quarter. Morningstar Investment Management LLC purchased a new stake in Crocs in the first quarter worth about $867,000. Landscape Capital Management L.L.C. purchased a new stake in Crocs in the fourth quarter worth about $3,800,000. Finally, NewEdge Wealth LLC bought a new position in Crocs during the 4th quarter worth about $971,000. 93.44% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades CROX has been the topic of a number of research reports. Royal Bank Of Canada started coverage on shares of Crocs in a research report on Monday, June 8th. They set an “overweight” rating on the stock. Wedbush began coverage on shares of Crocs in a research note on Monday, June 8th. They set an “outperform” rating on the stock. Robert W. Baird set a $163.00 price objective on shares of Crocs in a report on Friday, July 31st. Seaport Research Partners boosted their price objective on shares of Crocs from $135.00 to $160.00 and gave the stock a “buy” rating in a research note on Monday, July 20th. Finally, Barclays upped their target price on Crocs from $110.00 to $118.00 and gave the stock an “equal weight” rating in a report on Friday, July 31st. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $139.10.

Get Our Latest Stock Analysis on Crocs Insider Buying and Selling In related news, CEO Andrew Rees sold 19,072 shares of Crocs stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $138.91, for a total value of $2,649,291.52. Following the completion of the sale, the chief executive officer directly owned 713,293 shares in the company, valued at $99,083,530.63. This trade represents a 2.60% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In the last ninety days, insiders have sold 62,688 shares of company stock valued at $8,014,859. 3.10% of the stock is owned by company insiders.

Crocs Trading Up 3.1% Shares of NASDAQ:CROX opened at $125.84 on Tuesday. The business’s 50-day moving average is $129.45 and its 200 day moving average is $108.80. The company has a debt-to-equity ratio of 0.94, a current ratio of 1.49 and a quick ratio of 0.96. Crocs, Inc. has a 1 year low of $73.21 and a 1 year high of $141.28. The firm has a market capitalization of $6.03 billion, a P/E ratio of 10.88, a P/E/G ratio of 1.02 and a beta of 1.53.

Crocs (NASDAQ:CROX – Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The textile maker reported $4.55 earnings per share for the quarter, topping the consensus estimate of $4.35 by $0.20. Crocs had a return on equity of 47.75% and a net margin of 14.64%.The business had revenue of $1.18 billion during the quarter, compared to the consensus estimate of $1.15 billion. During the same quarter last year, the company earned ($8.82) earnings per share. The company’s quarterly revenue was up 2.6% on a year-over-year basis. Crocs has set its FY 2026 guidance at 13.700-14.000 EPS and its Q3 2026 guidance at 3.200-3.300 EPS. On average, research analysts predict that Crocs, Inc. will post 13.95 earnings per share for the current fiscal year.

Crocs Company Profile (Free Report)

Crocs, Inc is a global footwear designer, developer and distributor best known for its lightweight, proprietary Croslite™ foam-clog construction. The company’s product portfolio encompasses a range of styles, including clogs, sandals, slides, boots and sneakers, all featuring the slip-resistant, odor-resistant and cushion-providing qualities of the Croslite material. Crocs distributes its products through an omnichannel network that includes e-commerce platforms, company-owned retail stores, authorized dealers and wholesale partners.

Founded in 2002 by Scott Seamans, Lyndon “Duke” Hanson and George Boedecker Jr., Crocs launched its first clog on the island of Vail, Colorado.

Further Reading Five stocks we like better than Crocs Visa Just Put Hims & Hers in the Penalty Box—Here’s Why It Matters Treasury Yields Are Surging Again: 3 Stocks That Could Feel the Pain Snowflake Could Be Headed for New Highs Despite Insider Selling MongoDB Is Surging—And the Next Catalyst Is Almost Here Want to see what other hedge funds are holding CROX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Crocs, Inc. (NASDAQ:CROX – Free Report).

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Abacus FCF Advisors LLC bought a new stake in shares of Crocs, Inc. (NASDAQ: CROX) in the undefined quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor bought 33,379 shares of the textile maker's stock, valued at approximately $4,027,000. Abacus FCF Advisors LLC owned 0.07%

Andrew Rees, Chief Executive Officer, sold 30,000 shares of Crocs, Inc. (CROX -0.63%) at a weighted average price of $138.49 per share. SEC Form 4 filing

Transaction summaryMetricValueTransaction value~$4.2 millionShares sold (indirectly held)30,000Post-transaction shares (directly held)~570,000Post-transaction shares (indirectly held)~713,000Post-transaction value$177.36 millionTransaction value based on SEC Form 4 weighted average sale price ($138.49); post-transaction value based on Aug. 10, 2026, market close ($138.19).

Key questionsWhat is the significance of this disposition relative to the CEO's total equity exposure?
The sale of 30,000 shares represented 2% of Andrew Rees's total beneficial ownership, leaving him with an aggregate stake of ~1.3 million shares. This disposition specifically reduced his indirect holdings by 4%, while his direct ownership of 570,179 shares remained unchanged.How does the execution price compare to recent market performance?
The shares were sold at a weighted-average price of $138.49, following a period of strong appreciation in which Crocs delivered an 84% total return over the 12 months ending Aug. 10, 2026. SEC filings indicate that the shares were sold in multiple tranches, ranging from $136.78 to $140.05 per share.What are the details regarding the indirect ownership structure?
The shares were held and sold by the Rees Family Living Trust. As a trustee, Andrew Rees exercises voting and investment power over the 713,293 shares remaining in the trust, which now constitutes approximately 56% of his total equity position in Crocs.Company OverviewMetricValueShare Price (as of market close 2026-08-10)$138.19Market Capitalization$6.6 billionRevenue (TTM)$4.1 billionNet Income (TTM)$593.4 millionCompany SnapshotCrocs, Inc. designs, develops, and distributes a comprehensive portfolio of everyday footwear and accessories under its flagship Crocs brand, including signature clogs, sandals, slides, boots, and sneakers, as well as complementary products such as socks and shoe charms for men, women, and children.The company generates revenue through a direct-to-consumer model and wholesale distribution channels, leveraging its distinctive product design and brand recognition to maintain pricing power and drive profitability across global markets.Crocs targets a broad consumer base spanning casual footwear users, lifestyle-conscious consumers, and fashion-forward consumers, with particular strength in the casual, comfort-oriented footwear segment.Crocs, Inc. is a leading designer and marketer of innovative casual footwear, with a market capitalization of $6.6 billion and TTM revenues of $4.1 billion, demonstrating substantial scale in the apparel and footwear sector. The company has achieved significant momentum, with a one-year stock price appreciation of 83.67%, reflecting strong operational execution and market demand for its product portfolio. Crocs' competitive advantage derives from its distinctive brand identity, proprietary product designs, and efficient omnichannel distribution strategy, which collectively position the company for sustained growth in the global casual footwear market.

What this transaction means for investorsThis transaction doesn't appear to be anything massive for investors to take note of, as its CEO appears to be making typical trades through his trust. While it is a sale out of his trust, it could be for something as simple as diversification -- and it doesn't appear to be an attempt to time the market by any means. Similarly, the sale was a mere 4% of his total indirect holdings, so it isn't a major decline.

From a stock perspective, Crocs is a powerful force in its somewhat weird niche of the shoe industry. Over the last decade, Crocs has grown sales by 16% annually, and currently boasts a 17% free cash flow margin. The stock is a 15-bagger over that time, despite its hefty $2.5 billion acquisition of HeyDude, which is largely considered a dramatic overpayment.

Growing sales by just 2% in its latest quarter, Crocs is trying to reignite its long-term growth story with new innovations, but the market has assigned a P/FCF ratio of 9.6 to the stock while it waits for a turnaround. Thanks to this low valuation, management has been buying back shares hand over fist, and the company has lowered its share count by 4% annually over the last ten years. If you're a fan of the Crocs brand, it may be a fun stock to hold at today's price, but I personally try to avoid fashion and footwear stocks -- though Crocs valuation is rather appealing.

Key Takeaways Crocs shares gained 26.9% in three months as stronger brand trends supported the recent rally.Crocs Brand DTC revenue rose 12.9%, while international sales climbed 7.8% in the second quarter. HEYDUDE revenue fell 5.7%, while tariffs helped push adjusted gross margin down 170 basis points. Shares of Crocs, Inc. (CROX - Free Report) have gained 26.9% in the past three months, putting the focus on whether improving brand trends can support further progress. The rally has coincided with firmer direct-to-consumer demand, international expansion and a broader product mix.

The operating picture is not uniformly positive. HEYDUDE remains under pressure and tariff-related costs have weighed on margins, leaving execution and profitability as key tests after the stock’s recent advance.

Crocs’ Three-Month Rally Meets Stronger Brand MomentumThe Crocs Brand has built momentum through product newness, collaborations and wider demand across footwear categories. Partnerships with BAPE and F1 Red Bull Racing supported engagement in the second quarter, while the BAPE collaboration featuring the Echo RO sold out within minutes globally.

Demand also broadened across Crocband, Echo and Crafted clog franchises and key sandal lines. These developments strengthen the business backdrop that has coincided with the share-price gain, but they should not be read as proof that any single operating initiative caused the stock move.

CROX Gets Support From DTC and International GrowthSecond-quarter Crocs Brand direct-to-consumer revenues increased 12.9% year over year. That performance came alongside reduced promotional activity, supporting the case that consumers are responding to the brand’s newer products and direct channels.

International revenues rose 7.8%, with China, India and Japan posting double-digit growth. Those markets give Crocs additional avenues for expansion as North America remains less consistent and wholesale trends continue to limit growth at home.

Image Source: Zacks Investment Research

Crocs Broadens Demand Beyond the Classic ClogCrocs is extending demand beyond its core Classic Clog. Crocband, Echo and Crafted performed well in the second quarter, while the Miami, Getaway and Brooklyn sandal franchises continued to gain consumer adoption. The Classic Ballet Flat also recorded notable global sellouts, particularly in Asia.

The broader footwear market offers useful context. Deckers Outdoor Corporation (DECK - Free Report) competes through brands including HOKA, UGG and Teva. Birkenstock Holding plc (BIRK - Free Report) has built a broad unisex portfolio around its footbed-based products. For Crocs, adding successful silhouettes can reduce dependence on any single category.

CROX Still Faces HEYDUDE and Margin PressureHEYDUDE remains the clearest operating drag. Second-quarter revenues declined 5.7% to $179 million, while wholesale revenues fell 17.2%. Direct-to-consumer revenues increased 7.2%, but the brand still needs to rebuild broader channel momentum.

Profitability also warrants attention. Adjusted gross margin fell 170 basis points to 60%, primarily because of tariff impacts, while adjusted operating margin declined 180 basis points to 25.1%. Cost actions can help, but continued tariff exposure leaves less room for execution missteps.

Crocs’ Short-Term Signal Supports a Measured ViewThe recent 26.9% gain has been accompanied by better Crocs Brand trends, yet HEYDUDE weakness and margin pressure keep the investment case balanced. Investors still need evidence that international growth and product diversification can translate into durable enterprise-level improvement.

CROX currently carries a Zacks Rank #2 (Buy), a favorable short-term signal. It also has a VGM Score of B and Value Score of B, while its Growth Score of C and Momentum Score of F make the setup less uniform. The combination favors a measured view rather than assuming the recent rally guarantees further upside. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways AOUT, CROX, ROKU, LCUT and TILE are five discretionary stocks with upside.AOUT's earnings growth is expected to top 100%, with estimates up 29.4% in 60 days.LCUT's earnings estimate has improved 90.4% over 90 days, with 71.6% growth expected.
Inflation is finally showing signs of stabilizing, as consumer prices increased marginally in July. Oil prices fell for the second straight month, much to the relief of consumers, who have been concerned about the economy’s health.

Although inflation remains high, signs of slowing will give consumers the much-needed confidence. The marginal rise also weakens investors’ expectations of a rate hike by the Federal Reserve next month.

Given this scenario, we recommend buying four consumer discretionary stocks, namely, American Outdoor Brands, Inc. (AOUT - Free Report) , Crocs, Inc. (CROX - Free Report) , Roku, Inc. (ROKU - Free Report) , Lifetime Brands, Inc. (LCUT - Free Report) and Interface, Inc.(TILE - Free Report) ,

July Data Shows Inflation Stabilizing FinallyIn July, the consumer price index (CPI), one of the Federal Reserve’s key indicators of inflation, rose 0.1% sequentially, which came in line with analysts’ expectations, the Bureau of Labor Statistics reported on Wednesday. Core CPI, which strips out the volatile food and energy prices, rose 0.2% in July.

Year over year, CPI declined to 3.4% in July from 3.5% in the month earlier. Core CPI came in at 2.5% year over year last month, down 0.1% from June. Energy prices fell 1.5% after declining 5.7% in the prior month. Food and shelter costs each rose 0.1%.

The inflation data comes days after data showed surprise job losses in July. Inflation rose sharply earlier in the year owing to the U.S.-Iran conflict that saw oil prices surging 10.9% in March.

However, a temporary ceasefire and optimism surrounding peace talks between the two warring nations have seen energy costs ease over the past two months. The Federal Reserve had been planning to hike interest rates by a quarter percentage point this year to fight inflation.

Although inflation remains above the Fed’s 2% target, signs of easing inflation and an unexpectedly large number of job losses could make the central bank wait for some more time before deciding on a rate cut.

Lower borrowing costs will give consumers more spending power, which is expected to help the broader economy.

5 Consumer Discretionary Stocks With UpsideAmerican Outdoor BrandsAmerican Outdoor Brands, Inc. is a provider of outdoor products and accessories, including hunting, fishing, camping, shooting and personal security and defense products, for rugged outdoor enthusiasts. AOUT produces products under the brands Caldwell, Crimson Trace, Wheeler, Tipton, Frankford Arsenal, Lockdown, BOG, Hooyman, Smith & Wesson Accessories, M&P Accessories, Thompson/Center Arms Accessories, Performance Center Accessories, Schrade, Old Timer, Uncle Henry, Imperial, BUBBA, UST, LaserLyte and MEAT!.

American Outdoor Brands’ expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 29.4% over the past 60 days. AOUT currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CrocsCrocs, Inc. is one of the leading footwear brands with a focus on comfort and style. CROX offers a wide variety of footwear products, including sandals, wedges, flips and slides that cater to people of all ages.

Crocs’ expected earnings growth rate for the current year is 10.8%. The Zacks Consensus Estimate for current-year earnings has improved 1.4% over the past 60 days. CROX currently carries a Zacks Rank #2.

Roku, Inc. Roku, Inc. is the leading TV streaming platform provider in the United States, Canada and Mexico based on hours streamed.

Zacks Rank #1. Roku’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for the current-year earnings has improved 13.6% over the past 60 days.

Lifetime BrandsLifetime Brands, Inc. is a leading designer, marketer and distributor of kitchenware, cutlery & cutting boards, bakeware & cookware, pantry ware & spices, tabletop and bath accessories. LCUT markets its products under various trade names, including Farberware, KitchenAid, Pfaltzgraff, Cuisinart, Hoffritz, Sabatier, Nautica, DBK-Daniel Boulud Kitchen, Joseph Abboud Environments, Roshco, Baker's Advantage, Kamenstein, CasaModa, Kathy Ireland, and USE.

Lifetime Brands’ expected earnings growth rate for the current year is 71.6%. The Zacks Consensus Estimate for current-year earnings has improved 90.4% over the past 90 days. Currently, LCUT carries a Zacks Rank #1.

InterfaceInterface, Inc. is the world's largest manufacturer of modular carpet, which it markets under the Interface and FLOR brands. TILE is committed to the goal of sustainability and doing business in ways that minimize the impact on the environment, while enhancing shareholder value.

Interface’s expected earnings growth rate for the current year is 21.7%. The Zacks Consensus Estimate for current-year earnings has improved 11.8% over the past 60 days. TILE sports a Zacks Rank #1 at present.

A strong stock as of late has been Crocs (CROX - Free Report) . Shares have been marching higher, with the stock up 13.4% over the past month. The stock hit a new 52-week high of $141.28 in the previous session. Crocs has gained 65.1% since the start of the year compared to the -8.4% gain for the Zacks Consumer Discretionary sector and the 1.2% return for the Zacks Textile - Apparel industry.

What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 30, 2026, Crocs reported EPS of $4.55 versus consensus estimate of $4.32 while it beat the consensus revenue estimate by 2.79%.

For the current fiscal year, Crocs is expected to post earnings of $13.86 per share on $4.1 in revenues. This represents a 10.79% change in EPS on a 1.41% change in revenues. For the next fiscal year, the company is expected to earn $14.97 per share on $4.22 in revenues. This represents a year-over-year change of 8% and 2.87%, respectively.

Valuation MetricsWhile Crocs has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Crocs has a Value Score of B. The stock's Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 10.2X current fiscal year EPS estimates, which is not in-line with the peer industry average of 15.8X. On a trailing cash flow basis, the stock currently trades at 9.6X versus its peer group's average of 9.9X. Additionally, the stock has a PEG ratio of 1.17. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Crocs currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Crocs fits the bill. Thus, it seems as though Crocs shares could still be poised for more gains ahead.

How Does CROX Stack Up to the Competition?Shares of CROX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Revolve Group, Inc. (RVLV - Free Report) . RVLV has a Zacks Rank of #2 (Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of B.

Earnings were strong last quarter. Revolve Group, Inc. beat our consensus estimate by 30.00%, and for the current fiscal year, RVLV is expected to post earnings of $0.85 per share on revenue of $1.36 billion.

Shares of Revolve Group, Inc. have gained 17% over the past month, and currently trade at a forward P/E of 30.86X and a P/CF of 29.09X.

The Textile - Apparel industry may rank in the bottom 77% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for CROX and RVLV, even beyond their own solid fundamental situation.

Investors looking for stocks in the Textile - Apparel sector might want to consider either Crocs (CROX) or Cintas (CTAS). But which of these two stocks is more attractive to value investors?

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Crocs (CROX - Free Report) Founded in 1999 and based in Broomfield, CO, Crocs, Inc. is one of the leading footwear brands with its focus on comfort and style. Famous for its iconic clog material, Crocs’ simple design and great comfort was an instant hit among consumers. The company offers a wide variety of footwear products including sandals, wedges, flips and slide that cater to people of all age.

CROX is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 9.73; value investors should take notice.

For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.19 to $13.86 per share. CROX boasts an average earnings surprise of +13.6%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, CROX should be on investors' short list.

Crocs, Inc. (CROX) Q2 2026 Earnings Call Transcript

Crocs, Inc. (NASDAQ:CROX) shares fell almost 10% on Thursday after the footwear company issued a weaker-than-expected third quarter outlook, as tariff pressures and continued weakness at its HEYDUDE brand weighed on sentiment, despite a second-quarter earnings and revenue beat.

The company forecast Q3 adjusted earnings per share of $3.20 to $3.30 on roughly flat revenue, below Wall Street expectations for adjusted EPS of around $3.53 to $3.55 and revenue of about $1 billion. Crocs attributed the outlook to ongoing tariff impacts and product mix pressures.

For the second quarter of 2026, Crocs reported adjusted earnings per share of $4.55, above analyst estimates of $4.32 to $4.35.

Revenue came in at $1.18 billion, topping expectations of $1.15 billion and rising 2.6% from the prior year.

The company’s core Crocs brand surpassed $1 billion in quarterly revenue for the first time, with sales increasing 4.3% year over year to $1 billion. Direct-to-consumer revenue for the brand rose 12.9%, while wholesale revenue declined 5%.

HEYDUDE continued to face challenges, with quarterly revenue falling 5.7% to $179 million. Direct-to-consumer sales increased 7.2%, but wholesale revenue declined 17.2%.

Overall gross margin declined to 59.4% from 61.7% a year earlier, while adjusted gross margin fell 170 basis points to 60% as tariff-related costs affected profitability. Adjusted operating income declined 4.5% to $296 million, with adjusted operating margin narrowing to 25.1% from 26.9%.

Crocs raised its full-year 2026 outlook, now expecting revenue growth of approximately 1% to 2%, compared with its previous forecast of down 1% to up 1%. Adjusted diluted earnings per share guidance was increased to a range of $13.70 to $14, up from the prior range of $13.20 to $13.75.

“Our results reflect broad consumer demand across both brands, healthy direct-to-consumer growth, and strong consumer response to new product innovation,” Crocs CEO Andrew Rees said in a statement.  

The company also announced that its board increased its share repurchase authorization by $1.5 billion, leaving approximately $2 billion available for future buybacks. During the quarter, Crocs repurchased about 2.3 million shares for $251 million.

Crocs, Inc. (NASDAQ:CROX) shares fell almost 10% on Thursday after the footwear company issued a weaker-than-expected third quarter outlook, as tariff pressures and continued weakness at its HEYDUDE brand weighed on sentiment, despite a second-quarter earnings and revenue beat.

The company forecast Q3 adjusted earnings per share of $3.20 to $3.30 on roughly flat revenue, below Wall Street expectations for adjusted EPS of around $3.53 to $3.55 and revenue of about $1 billion. Crocs attributed the outlook to ongoing tariff impacts and product mix pressures.

For the second quarter of 2026, Crocs reported adjusted earnings per share of $4.55, above analyst estimates of $4.32 to $4.35.

Revenue came in at $1.18 billion, topping expectations of $1.15 billion and rising 2.6% from the prior year.

The company’s core Crocs brand surpassed $1 billion in quarterly revenue for the first time, with sales increasing 4.3% year over year to $1 billion. Direct-to-consumer revenue for the brand rose 12.9%, while wholesale revenue declined 5%.

HEYDUDE continued to face challenges, with quarterly revenue falling 5.7% to $179 million. Direct-to-consumer sales increased 7.2%, but wholesale revenue declined 17.2%.

Overall gross margin declined to 59.4% from 61.7% a year earlier, while adjusted gross margin fell 170 basis points to 60% as tariff-related costs affected profitability. Adjusted operating income declined 4.5% to $296 million, with adjusted operating margin narrowing to 25.1% from 26.9%.

Crocs raised its full-year 2026 outlook, now expecting revenue growth of approximately 1% to 2%, compared with its previous forecast of down 1% to up 1%. Adjusted diluted earnings per share guidance was increased to a range of $13.70 to $14, up from the prior range of $13.20 to $13.75.

“Our results reflect broad consumer demand across both brands, healthy direct-to-consumer growth, and strong consumer response to new product innovation,” Crocs CEO Andrew Rees said in a statement.  

The company also announced that its board increased its share repurchase authorization by $1.5 billion, leaving approximately $2 billion available for future buybacks. During the quarter, Crocs repurchased about 2.3 million shares for $251 million.

With a 60%+ Upside, There’s Plenty to Love About LovesacCrocs NASDAQ: CROX reported record second-quarter revenue of $1.2 billion for 2026, up 2% from a year earlier on a constant-currency basis, as direct-to-consumer demand and international growth helped offset planned wholesale declines. The company raised its full-year revenue and adjusted earnings outlook while expanding its share-repurchase authorization.

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Chief Executive Officer Andrew Rees said the quarter represented an “important inflection” for both the Crocs and HEYDUDE brands. Crocs brand revenue rose 4% to surpass $1 billion in a quarter for the first time, while HEYDUDE revenue declined 6% to $179 million, a result that management said was ahead of expectations.

Direct-to-Consumer Growth and International Strength 3 Consumer Discretionary Stocks Ready for a Comeback in 2025Direct-to-consumer revenue increased 12% for the Crocs brand and 7% for HEYDUDE. Rees said Crocs achieved its DTC growth while reducing promotional activity, while HEYDUDE’s increase came despite lower performance-marketing spending.

International revenue for the Crocs brand increased 7%, led by double-digit growth in China, India and Japan. Crocs also returned to slight growth in North America during the quarter, driven by a 5% increase in North American DTC sales and marketplace strength, according to Chief Financial Officer Patraic Reagan.

Wolverine World Wide Breaks Out – Will the 92% Rally Continue?Rees pointed to demand across the company’s expanded product assortment, including Crocband, Echo and Crafted clogs as well as sandals, ballet flats, recovery footwear, bags and accessories. The company said sandals were a strong contributor to its quarterly upside, with Rees noting that Crocs’ global sandal business is expected to reach $500 million this year.

“We continue to gain share in sandals within the Crocs brand,” Rees said, adding that the company sees a multiyear growth opportunity in the category.

The HEYDUDE brand continued its effort to return to growth. Its DTC results were supported by digital marketplaces and new stores, while wholesale revenue fell 17% as the company managed inventory levels in the channel. Rees said HEYDUDE has delivered several sequential quarters of improving performance and that management expects the brand to return to growth in North America during the second half of the year.

Margins Face Tariff Pressure Enterprise adjusted gross margin was 60%, down 170 basis points year over year. Reagan attributed most of the decline to 160 basis points of incremental tariff impact.

Crocs brand adjusted gross margin was 63.1%, down 100 basis points, reflecting tariffs and product mix, partly offset by cost savings and international price increases. HEYDUDE adjusted gross margin was 43.7%, down 650 basis points, due to tariffs as well as channel and product mix. Adjusted operating margin was 25.1%, down 180 basis points year over year. Adjusted diluted earnings per share rose 8% to $4.55, exceeding the company’s prior guidance range of $4.15 to $4.30. The company reported adjusted selling, general and administrative expenses of $412 million, up 3% from a year earlier, as cost savings were offset by DTC investments.

Inventory totaled $389 million as of June 30, down 4% from a year earlier despite higher tariffs. Footwear inventory units declined by a high-single-digit percentage, and enterprise inventory turns were above the company’s annualized goal of four times, Reagan said.

Capital Returns and New Buyback Authorization Crocs repurchased approximately 2.3 million shares for $251 million during the second quarter and paid down $31 million in debt. The company ended the quarter with just over $170 million in cash and cash equivalents, about $870 million in revolver borrowing capacity, and net leverage at the low end of its target range of 1 times to 1.5 times.

The board approved an additional $1.5 billion share-repurchase authorization, increasing total available authorization to about $2 billion.

Reagan said the new authorization reflects management’s confidence in the company’s cash-generation capacity and commitment to returning excess capital to shareholders.

Outlook Raised, Marketplace Change Ahead For full-year 2026, Crocs now expects enterprise revenue to grow 1% to 2%, up from its previous outlook. The Crocs brand is expected to grow 2% to 3%, compared with prior guidance ranging from flat to 2% growth. HEYDUDE revenue is expected to decline 2% to 4%, an improvement from the prior forecast for a 5% to 7% decline.

The company raised its full-year adjusted diluted EPS outlook to $13.70 to $14.00, from $13.20 to $13.75 previously. It continues to expect adjusted gross margin to rise slightly for the year and adjusted operating margin to expand modestly from the 22.3% reported in fiscal 2025.

For the third quarter, Crocs expects revenue to be approximately flat at currency rates as of July 27. Crocs brand revenue is expected to rise about 1%, while HEYDUDE revenue is expected to range from flat to down 3%. Adjusted diluted EPS is projected at $3.20 to $3.30.

Beginning in the third quarter, the company will implement a business-model change with one of its largest North American marketplace partners. Reagan said the change will shift the recognition of some Crocs brand revenue from DTC to wholesale, reducing total reported revenue but leaving units sold and market share unchanged. The company expects a slight operating-profit benefit from the change.

Rees said Crocs remains confident in the long-term growth path of both brands, supported by product diversification, international expansion, marketplace momentum and cash flow generation.

About Crocs (NASDAQ:CROX)Crocs, Inc is a global footwear designer, developer and distributor best known for its lightweight, proprietary Croslite™ foam-clog construction. The company's product portfolio encompasses a range of styles, including clogs, sandals, slides, boots and sneakers, all featuring the slip-resistant, odor-resistant and cushion-providing qualities of the Croslite material. Crocs distributes its products through an omnichannel network that includes e-commerce platforms, company-owned retail stores, authorized dealers and wholesale partners.

Founded in 2002 by Scott Seamans, Lyndon “Duke” Hanson and George Boedecker Jr., Crocs launched its first clog on the island of Vail, Colorado.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Full-Year 2026 Outlook Raised On Both The Top- And Bottom-Line Crocs Brand Surpasses $1 Billion In Quarterly Revenue For The First Time Share Repurchase Authorization Increased By $1.5 Billion To Approximately $2 Billion , /PRNewswire/ -- Crocs, Inc. (NASDAQ: CROX), a world leader in innovative casual footwear for all, today announced its second quarter 2026 financial results.

"We are pleased to have delivered a stronger-than-expected second quarter, highlighted by record enterprise revenue, including the Crocs Brand surpassing $1 billion in quarterly revenue for the first time ever. Our results reflect broad consumer demand across both brands, healthy direct-to-consumer growth, and strong consumer response to new product innovation. Based on our strong first half performance, we are again raising our full-year top- and bottom-line guidance," said Andrew Rees, Chief Executive Officer.

Mr. Rees continued, "Supported by our strong cash flow generation, we remain committed to balancing investment in our brands with disciplined capital allocation, including share repurchase and debt paydown. Reflecting our confidence in the business and future cash-flow generation, we have expanded our share repurchase authorization as we aim to further return meaningful value to shareholders."

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.

Second Quarter 2026 Operating Results (Compared to the Same Period Last Year)

Consolidated revenues were $1,179 million, an increase of 2.6%, or 2.0% on a constant currency basis. Direct-to-consumer ("DTC") revenues grew 12.0%, or 11.3% on a constant currency basis. Wholesale revenues decreased 7.2%, or 7.6% on a constant currency basis. Gross margin was 59.4% compared to 61.7%. Adjusted gross margin decreased 170 basis points to 60.0% compared to 61.7%. Selling, general, and administrative expenses ("SG&A") of $415 million decreased 63.5% from $1,136 million, and represented 35.2% of revenues compared to 98.9%. The decrease in SG&A is largely driven by noncash impairment charges related to the indefinite-lived HEYDUDE trademark and HEYDUDE Brand reporting unit goodwill of $430 million and $307 million, respectively, during the three months ended June 30, 2025. Adjusted SG&A increased 3.1% to $412 million, and represented 34.9% of revenues compared to 34.7%. Income from operations of $286 million compared to loss from operations of $428 million resulted in operating margin of 24.2% compared to operating margin loss of 37.2%. The prior year loss from operations is driven by asset impairments, as described above. Adjusted income from operations of $296 million decreased 4.5% from $309 million, resulting in adjusted operating margin of 25.1% compared to 26.9%. Diluted earnings per share of $4.13 compared to diluted loss per share of $8.82. The prior year loss per share is driven by asset impairments, as described above. Adjusted diluted earnings per share of $4.55 increased 7.6% from $4.23. During the quarter, we repaid $31 million of debt. We repurchased approximately 2.3 million shares for $251 million at the average share price of $106.87. At quarter-end, approximately $496 million of share repurchase authorization remained available for future repurchases. Second Quarter 2026 Brand Summary (Compared to the Same Period Last Year)

Crocs Brand: Revenues increased 4.3% to $1.0 billion, or 3.7% on a constant currency basis. Channel DTC revenues increased 12.9% to $559 million, or 12.0% on a constant currency basis.  Wholesale revenues decreased 5.0% to $441 million, or 5.4% on a constant currency basis. Geography North America revenues increased 0.4% to $459 million, or 0.4% on a constant currency basis. International revenues increased 7.8% to $542 million, or 6.6% on a constant currency basis. HEYDUDE Brand: Revenues decreased 5.7% to $179 million, or 5.8% on a constant currency basis. Channel DTC revenues increased 7.2% to $96 million or 7.1% on a constant currency basis. Wholesale revenues decreased 17.2% to $83 million, or 17.4% on a constant currency basis. Balance Sheet and Cash Flow (June 30, 2026, as compared to June 30, 2025)

Cash and cash equivalents were $170 million compared to $201 million.  Inventories were $389 million compared to $405 million.  Total borrowings were $1.31 billion compared to $1.38 billion.  Capital expenditures were $39 million compared to $32 million. Crocs, Inc. Upsizes Share Repurchase Authorization To $2.0 Billion

On July 27, 2026, the Board approved a $1.5 billion increase to our share repurchase authorization, after which approximately $2.0 billion remained available for future common stock repurchases.

Financial Outlook

Full Year 2026

For 2026, we expect:

Revenues to be up approximately 1% to 2% compared to full year 2025, up from our previous guidance of down 1% to up 1%, at currency rates as of July 27, 2026. Crocs Brand to be up approximately 2% to 3% compared to full year 2025, up from our previous guidance of flat to up 2%. HEYDUDE Brand to be down approximately 4% to 2% compared to full year 2025, up from our previous guidance of down 7% to 5%. Non-GAAP adjustments to be approximately $25 million primarily associated with our cost reduction initiatives. Adjusted operating margin to expand modestly from 22.3%. GAAP effective tax rate to be approximately 23% and adjusted effective tax rate to be approximately 18%. Adjusted diluted earnings per share to be in the range of $13.70 to $14.00, up from our previous guidance range of $13.20 to $13.75. Adjusted diluted earnings per share guidance does not assume any impact from potential future share repurchases. Capital expenditures of $70 million to $80 million. Third Quarter 2026

For the third quarter of 2026, we expect:

Revenues to be approximately flat compared to the third quarter of 2025, at currency rates as of July 27, 2026. Crocs Brand to be up approximately 1% compared to the third quarter of 2025. HEYDUDE Brand to be down approximately 3% to flat compared to the third quarter of 2025. Adjusted operating margin to be approximately 21.5%. Adjusted diluted earnings per share to be in the range of $3.20 to $3.30. Adjusted diluted earnings per share guidance does not assume any impact from potential future share repurchases. Conference Call Information

A conference call to discuss second quarter results is scheduled for today, Thursday, July 30, 2026, 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 July 30, 2027, at this site.

About Crocs, Inc.:

Crocs, Inc. (Nasdaq: CROX), headquartered in Broomfield, Colorado, is a world leader in innovative casual footwear for all, combining comfort and style with a value that consumers know and love. The Company's brands include Crocs and HEYDUDE, and its products are sold in more than 85 countries through wholesale and direct-to-consumer channels. For more information on Crocs, Inc. visit investors.crocs.com. To learn more about our brands, visit www.crocs.com or www.heydude.com. Individuals can also visit https://investors.crocs.com/news-and-events/ and follow both Crocs and HEYDUDE on their social platforms.

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 July 30, 2026. 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,

2026

2025

2026

2025

Revenues

$ 1,179,468

$ 1,149,373

$ 2,100,925

$ 2,086,706

Cost of sales

478,761

440,537

877,273

836,321

 Gross profit

700,707

708,836

1,223,652

1,250,385

Selling, general and administrative expenses

415,029

1,136,352

737,130

1,454,927

Income (loss) from operations

285,678

(427,516)

486,522

(204,542)

Foreign currency (losses) gains, net

(2,302)

434

(3,927)

5,307

Interest income

583

371

918

704

Interest expense

(19,909)

(22,523)

(40,368)

(45,289)

Other (expense) income, net

(127)

627

(378)

152

 Income (loss) before income taxes

263,923

(448,607)

442,767

(243,668)

Income tax expense

59,036

43,675

100,324

88,511

Net income (loss)

$ 204,887

$ (492,282)

$ 342,443

$ (332,179)

Net income (loss) per common share:

 Basic

$ 4.17

$ (8.82)

$ 6.89

$ (5.94)

 Diluted

$ 4.13

$ (8.82)

$ 6.83

$ (5.94)

Weighted average common shares outstanding:

 Basic

49,115

55,783

49,695

55,946

 Diluted

49,628

55,783

50,164

55,946

CROCS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(in thousands, except share and par value amounts)

June 30,
2026

December 31,
2025

ASSETS

Current assets:

Cash and cash equivalents

$ 170,276

$ 130,354

Accounts receivable, net of allowances of $38,848 and $28,136, respectively

430,297

278,191

Inventories

389,212

368,687

Income taxes receivable

4,924

32,782

Other receivables

22,892

22,082

Prepaid expenses and other assets

67,005

53,787

Total current assets

1,084,606

885,883

Property and equipment, net of accumulated depreciation of $239,780 and $209,873,
respectively

246,078

238,191

Intangible assets, net

1,317,707

1,324,680

Goodwill

404,643

404,689

Deferred tax assets, net

911,346

935,054

Restricted cash

3,555

3,557

Right-of-use assets

337,548

338,669

Other assets

50,796

44,027

Total assets

$ 4,356,279

$ 4,174,750

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

 Accounts payable

$ 262,511

$ 266,090

 Accrued expenses and other liabilities

306,066

300,959

 Income taxes payable

69,308

47,308

 Current operating lease liabilities

90,144

85,772

Total current liabilities

728,029

700,129

Deferred tax liabilities, net

861

882

Long-term income taxes payable

639,580

649,057

Long-term borrowings

1,307,658

1,230,885

Long-term operating lease liabilities

291,400

297,192

Other liabilities

4,077

3,322

Total liabilities

2,971,605

2,881,467

Commitments and contingencies

Stockholders' equity:

Common stock, par value $0.001 per share, 250.0 million shares authorized, 111.0 million
  and 110.7 million issued, 48.1 million and 50.2 million outstanding, respectively

111

111

Treasury stock, at cost, 62.9 million and 60.5 million shares, respectively

(3,296,549)

(3,040,416)

Additional paid-in capital

921,457

896,605

Retained earnings

3,823,081

3,480,638

Accumulated other comprehensive loss

(63,426)

(43,655)

Total stockholders' equity

1,384,674

1,293,283

Total liabilities and stockholders' equity

$ 4,356,279

$ 4,174,750

CROCS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(in thousands)

Six Months Ended June 30,

2026

2025

Cash flows from operating activities:

Net income (loss)

$ 342,443

$ (332,179)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

40,286

38,011

Operating lease cost

56,581

49,738

Share-based compensation

24,852

20,036

Asset impairments

3,301

738,115

Deferred taxes

(53)

13,956

Other non-cash items

8,531

8,428

Changes in operating assets and liabilities:

Accounts receivable

(154,913)

(147,242)

Inventories

(22,832)

(49,824)

Prepaid expenses and other assets

(21,297)

(12,160)

Accounts payable, accrued expenses and other liabilities

1,604

(26,467)

Right-of-use assets and operating lease liabilities

(56,764)

(49,821)

Income taxes

49,029

(32,026)

Cash provided by operating activities

270,768

218,565

Cash flows from investing activities:

Purchases of property, equipment, and software

(38,729)

(31,946)

Cash used in investing activities

(38,729)

(31,946)

Cash flows from financing activities:

Proceeds from borrowings

295,000

539,000

Repayments of borrowings

(223,000)

(514,000)

Repurchases of common stock, including excise tax

(256,157)

(194,137)

Repurchases of common stock for tax withholding

(3,238)

(4,104)

Cash used in financing activities

(187,395)

(173,241)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

(4,724)

7,125

Net change in cash, cash equivalents, and restricted cash

39,920

20,503

Cash, cash equivalents, and restricted cash—beginning of period

133,911

183,678

Cash, cash equivalents, and restricted cash—end of period

$ 173,831

$ 204,181

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 the United States of America ("GAAP"), we present "Non-GAAP gross profit," "Non-GAAP gross margin," "Non-GAAP gross margin by brand," "Non-GAAP selling, general, and administrative expenses," "Non-GAAP selling, general and administrative expenses as a percent of revenues," "Non-GAAP income from operations," "Non-GAAP operating margin," "Non-GAAP income before income taxes," "Non-GAAP income tax expense," "Non-GAAP effective tax rate," "Non-GAAP net income," and "Non-GAAP basic and diluted net income per common share," which are non-GAAP financial measures. We also present future period guidance for "Non-GAAP operating margin," "Non-GAAP effective tax rate," "Non-GAAP diluted earnings per share," and "Free cash flow." We also present a long-term target for 'Net leverage.' Non-GAAP results exclude the impact of items that management believes affect the comparability or underlying business trends in our condensed consolidated financial statements in the periods presented.

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 the three and six months ended June 30, 2026, 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.

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,

2026

2025

2026

2025

(in thousands)

GAAP revenues

$ 1,179,468

$ 1,149,373

$ 2,100,925

$ 2,086,706

GAAP gross profit

$ 700,707

$ 708,836

$ 1,223,652

$ 1,250,385

Distributor takeback costs (1)

4,356

—

4,356

—

Distribution centers (2)

2,355

—

3,733

—

Other

49

—

118

—

Total adjustments

6,760

—

8,207

—

Non-GAAP gross profit

$ 707,467

$ 708,836

$ 1,231,859

$ 1,250,385

GAAP gross margin

59.4 %

61.7 %

58.2 %

59.9 %

Non-GAAP gross margin

60.0 %

61.7 %

58.6 %

59.9 %

(1)

Relates to the takeback of a distributor in Malaysia.

(2)

Relates to the transition away from a third-party logistics provider for the HEYDUDE Brand, software transition costs at our Crocs Brand distribution center in Dayton, Ohio, and other distribution center related transition costs.

Non-GAAP gross margin reconciliation by brand:

Crocs Brand:

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

GAAP Crocs Brand gross margin

62.6 %

64.1 %

61.2 %

62.6 %

Non-GAAP adjustments:

Distributor takeback costs (1)

0.4 %

— %

0.3 %

— %

Distribution centers (2)

0.1 %

— %

0.1 %

— %

Other

less than 0.1%

— %

less than 0.1%

— %

Non-GAAP Crocs Brand gross margin

63.1 %

64.1 %

61.6 %

62.6 %

(1)

Relates to the takeback of a distributor in Malaysia.

(2)

Relates to software transition costs at our Crocs Brand distribution center in Dayton, Ohio and other distribution center related transition costs.

HEYDUDE Brand:

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

GAAP HEYDUDE Brand gross margin

43.1 %

50.2 %

43.5 %

48.5 %

Non-GAAP adjustments:

Distribution centers (1)

0.6 %

— %

0.6 %

— %

Non-GAAP HEYDUDE Brand gross margin

43.7 %

50.2 %

44.1 %

48.5 %

(1)  Relates to the transition away from a third-party logistics provider.

Non-GAAP selling, general and administrative reconciliation:

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

(in thousands)

GAAP revenues

$ 1,179,468

$ 1,149,373

$ 2,100,925

$ 2,086,706

GAAP selling, general and administrative expenses

$ 415,029

$ 1,136,352

$ 737,130

$ 1,454,927

Impairment of indefinite-lived trademark (1)

—

(430,000)

—

(430,000)

Impairment of goodwill (2)

—

(307,000)

—

(307,000)

Charges incurred in connection with cost savings initiatives

(2,924)

—

(4,583)

—

Impairment of leasehold improvement assets (3)

—

—

(3,301)

—

Severance costs (4)

(310)

—

1,260

Other

38

—

38

—

Total adjustments

(3,196)

(737,000)

(6,586)

(737,000)

Non-GAAP selling, general and administrative expenses (5)

$   411,833

$  399,352

$  730,544

$  717,927

GAAP selling, general and administrative expenses as a percent of revenues

35.2 %

98.9 %

35.1 %

69.7 %

Non-GAAP selling, general and administrative expenses as a percent of revenues

34.9 %

34.7 %

34.8 %

34.4 %

(1)

Represents an impairment of the HEYDUDE indefinite-lived trademark.

(2)

Represents an impairment of the HEYDUDE Brand reporting unit goodwill.

(3)

Represents impairment charges for certain HEYDUDE leasehold improvement assets.

(4)

Represents operational workforce reduction charges incurred in connection with cost savings initiatives in the three months ended June 30, 2026. Additionally, the six months ended June 30, 2026, includes a change in estimate for severance costs recorded as of December 31, 2025.

(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,

2026

2025

2026

2025

(in thousands)

GAAP revenues

$ 1,179,468

$ 1,149,373

$ 2,100,925

$ 2,086,706

GAAP income (loss) from operations

$    285,678

$   (427,516)

$    486,522

$   (204,542)

Non-GAAP gross profit adjustments (1)

6,760

—

8,207

—

Non-GAAP selling, general and administrative expenses adjustments (2)

3,196

737,000

6,586

737,000

Non-GAAP income from operations

$   295,634

$   309,484

$   501,315

$   532,458

GAAP operating margin

24.2 %

(37.2) %

23.2 %

(9.8) %

Non-GAAP operating margin

25.1 %

26.9 %

23.9 %

25.5 %

(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 and effective tax rate reconciliation:

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

(in thousands)

GAAP income (loss) from operations

$ 285,678

$ (427,516)

$ 486,522

$ (204,542)

GAAP income (loss) before income taxes

263,923

(448,607)

442,767

(243,668)

Non-GAAP income from operations (1)

$ 295,634

$ 309,484

$ 501,315

$ 532,458

GAAP non-operating income (expense):

Foreign currency (losses) gains, net

(2,302)

434

(3,927)

5,307

Interest income

583

371

918

704

Interest expense

(19,909)

(22,523)

(40,368)

(45,289)

Other (expense) income, net

(127)

627

(378)

152

Non-GAAP income before income taxes

$ 273,879

$ 288,393

$ 457,560

$ 493,332

GAAP income tax expense

$   59,036

$   43,675

$ 100,324

$   88,511

Tax effect of non-GAAP operating adjustments

2,273

29,942

2,406

29,942

Impact of intra-entity IP transactions (2)

(13,104)

(22,701)

(22,283)

(32,273)

Non-GAAP income tax expense

$  48,205

$   50,916

$  80,447

$  86,180

GAAP effective income tax rate

22.4 %

(9.7) %

22.7 %

(36.3) %

Non-GAAP effective income tax rate

17.6 %

17.7 %

17.6 %

17.5 %

(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,

2026

2025

2026

2025

(in thousands, except per share data)

Numerator:

GAAP net income (loss)

$ 204,887

$ (492,282)

$ 342,443

$ (332,179)

Non-GAAP gross profit adjustments (1)

6,760

—

8,207

—

Non-GAAP selling, general and administrative expenses adjustments (2)

3,196

737,000

6,586

737,000

Non-GAAP other income adjustment

—

—

—

(842)

Tax effect of non-GAAP adjustments (3)

10,831

(7,241)

19,877

2,331

Non-GAAP net income

$ 225,674

$ 237,477

$ 377,113

$ 406,310

Denominator:

GAAP weighted average common shares outstanding - basic

49,115

55,783

49,695

55,946

Plus: GAAP dilutive effect of stock options and unvested restricted stock units

513

—

469

—

GAAP weighted average common shares outstanding - diluted

49,628

55,783

50,164

55,946

GAAP weighted average common shares outstanding - basic

55,783

55,946

Plus: dilutive effect of stock options and unvested restricted stock units

365

379

Non-GAAP weighted average common shares outstanding - diluted

56,148

56,325

GAAP net income (loss) per common share:

Basic

$ 4.17

$ (8.82)

$ 6.89

$ (5.94)

Diluted

$ 4.13

$ (8.82)

$ 6.83

$ (5.94)

Non-GAAP net income per common share:

Basic

$ 4.59

$ 4.26

$ 7.59

$ 7.26

Diluted

$ 4.55

$ 4.23

$ 7.52

$ 7.21

(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,

2026

2025

2026

2025

(in thousands)

Cash provided by operating activities

$ 351,702

$ 285,800

$ 270,768

$ 218,565

Purchases of property, equipment, and software

(20,729)

(16,571)

(38,729)

(31,946)

Free cash flow

$ 330,973

$ 269,229

$ 232,039

$ 186,619

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL GUIDANCE

Full Year 2026:

Approximately:

Non-GAAP operating margin reconciliation:

GAAP operating margin

>21.7%

Non-GAAP adjustments (1)

0.6 %

Non-GAAP operating margin

>22.3%

Non-GAAP effective tax rate reconciliation:

GAAP effective tax rate

23 %

Non-GAAP adjustments (2)

(5) %

Non-GAAP effective tax rate

18 %

Non-GAAP diluted earnings per share reconciliation:

GAAP diluted earnings per share

$12.47 to $12.77

Non-GAAP adjustments (1)(2)

$1.23

Non-GAAP diluted earnings per share

$13.70 to $14.00

(1)

During 2026, we expect to incur approximately $25 million of non-GAAP adjustments, primarily associated with our cost reduction initiatives. This estimate does not include the receipt of potential IEEPA tariff refunds, as we are not able to predict the timing quarter-by-quarter. We plan to recognize IEEPA tariff refunds when they are realized or considered realizable, in accordance with the gain contingency model.

(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 full year 2026 impact of these transactions.

Non-GAAP Financial Guidance

Our forward-looking guidance for consolidated "adjusted operating margin" and "adjusted diluted earnings per share" represents non-GAAP financial measures that excludes or otherwise has been adjusted for special items from our U.S. GAAP financial statements. We consider these items to be necessary adjustments for purposes of evaluating our ongoing business performance and are often considered non-recurring. Such adjustments are subjective and involve significant management judgment.

While we are able to estimate full year non-GAAP adjustments, we are unable to reconcile forward-looking adjusted measures to their nearest U.S. GAAP measure quarter-by-quarter because we are unable to predict the timing of these adjustments with a reasonable degree of certainty. By their very nature, special and other non-core items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our company and its financial results. Therefore, we are unable to provide a reconciliation of these measures for the guidance related to the third quarter of 2026 without unreasonable efforts.

CROCS, INC. AND SUBSIDIARIES

REVENUES BY SEGMENT, CHANNEL, AND GEOGRAPHY

(UNAUDITED)

Three Months Ended
June 30,

Six Months Ended
June 30,

% Change

Constant Currency

% Change (1)

Favorable (Unfavorable)

2026

2025

2026

2025

Q2 2026-
2025

YTD
2026-
2025

Q2 2026-
2025

YTD
2026-
2025

($ in thousands)

Crocs Brand:

North America:

Wholesale

$ 152,549

$ 166,528

$ 290,946

$ 337,210

(8.4) %

(13.7) %

(8.4) %

(13.8) %

Direct-to-consumer

306,184

290,602

513,713

488,437

5.4 %

5.2 %

5.4 %

5.1 %

Total North America (2)

458,733

457,130

804,659

825,647

0.4 %

(2.5) %

0.4 %

(2.6) %

International:

Wholesale

288,950

298,151

596,375

604,274

(3.1) %

(1.3) %

(3.7) %

(3.8) %

Direct-to-consumer

252,754

204,309

366,819

291,278

23.7 %

25.9 %

21.6 %

22.3 %

Total International

541,704

502,460

963,194

895,552

7.8 %

7.6 %

6.6 %

4.8 %

Total Crocs Brand

$ 1,000,437

$ 959,590

$ 1,767,853

$ 1,721,199

4.3 %

2.7 %

3.7 %

1.2 %

Crocs Brand:

Wholesale

$ 441,499

$ 464,679

$ 887,321

$ 941,484

(5.0) %

(5.8) %

(5.4) %

(7.4) %

Direct-to-consumer

558,938

494,911

880,532

779,715

12.9 %

12.9 %

12.0 %

11.5 %

Total Crocs Brand

1,000,437

959,590

1,767,853

1,721,199

4.3 %

2.7 %

3.7 %

1.2 %

HEYDUDE Brand:

Wholesale

82,564

99,760

165,966

210,453

(17.2) %

(21.1) %

(17.4) %

(21.8) %

Direct-to-consumer

96,467

90,023

167,106

155,054

7.2 %

7.8 %

7.1 %

7.7 %

Total HEYDUDE Brand (3)

179,031

189,783

333,072

365,507

(5.7) %

(8.9) %

(5.8) %

(9.4) %

Total consolidated revenues

$ 1,179,468

$ 1,149,373

$ 2,100,925

$ 2,086,706

2.6 %

0.7 %

2.0 %

(0.6) %

(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)

North America includes the United States and Canada.

(3)

The vast majority of HEYDUDE Brand revenues are derived from North America.

Investor Contact:

Abigail Ritter, Crocs, Inc.

(302) 265-0922

[email protected]

PR Contact:

Melissa Layton, Crocs, Inc.

(303) 848-7885

[email protected]

SOURCE Crocs, Inc.

Analysts on Wall Street project that Crocs (CROX - Free Report) will announce quarterly earnings of $4.32 per share in its forthcoming report, representing an increase of 2.1% year over year. Revenues are projected to reach $1.15 billion, declining 0.2% from the same quarter last year.

The current level reflects a downward revision of 0.3% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

In light of this perspective, let's dive into the average estimates of certain Crocs metrics that are commonly tracked and forecasted by Wall Street analysts.

Analysts' assessment points toward 'Revenues- HEYDUDE Brand' reaching $167.01 million. The estimate suggests a change of -12% year over year.

It is projected by analysts that the 'Revenues- Crocs Brand' will reach $981.51 million. The estimate indicates a change of +2.3% from the prior-year quarter.

The consensus among analysts is that 'Non-GAAP Gross Margin- HEYDUDE Brand' will reach 47.4%. The estimate is in contrast to the year-ago figure of 50.2%.

The consensus estimate for 'Non-GAAP Gross Margin- Crocs Brand' stands at 62.8%. Compared to the current estimate, the company reported 64.1% in the same quarter of the previous year.

View all Key Company Metrics for Crocs here>>>

Over the past month, Crocs shares have recorded returns of +5.5% versus the Zacks S&P 500 composite's +0.8% change. Based on its Zacks Rank #4 (Sell), CROX will likely underperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

In the latest trading session, Crocs (CROX - Free Report) closed at $134.66, marking a +1.65% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.05%. Elsewhere, the Dow gained 0.46%, while the tech-heavy Nasdaq lost 0.64%.

The footwear company's shares have seen an increase of 11.43% over the last month, surpassing the Consumer Discretionary sector's loss of 2.45% and the S&P 500's gain of 0.61%.

Investors will be eagerly watching for the performance of Crocs in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 30, 2026. On that day, Crocs is projected to report earnings of $4.32 per share, which would represent year-over-year growth of 2.13%. Our most recent consensus estimate is calling for quarterly revenue of $1.15 billion, down 0.16% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.66 per share and a revenue of $4.08 billion, representing changes of +9.19% and +0.87%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Crocs. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.06% lower. Crocs presently features a Zacks Rank of #4 (Sell).

In terms of valuation, Crocs is currently trading at a Forward P/E ratio of 9.7. This indicates a discount in contrast to its industry's Forward P/E of 15.71.

Meanwhile, CROX's PEG ratio is currently 1.37. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CROX's industry had an average PEG ratio of 2.18 as of yesterday's close.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Key Takeaways CROX has outperformed peers recently but faces tariff, margin and HEYDUDE-related growth challenges.Crocs is investing in international expansion, marketing and inventory discipline to support long-term growth.CROX trades below the industry P/E but above its historical median valuation despite recent share gains. Crocs, Inc. (CROX - Free Report) has seen its shares rally 28.1% in the past three months, outperforming the industry’s growth of 5.6%. The stock has also outperformed the broader sector’s 4.7% decline and the S&P 500 Index’s 4% increase over the same period.

CROX Stock’s 3-Month Performance
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In the past three months, CROX has trailed the performance of Vince Holding Corp. (VNCE - Free Report) while outperforming G-III Apparel Group, Ltd. (GIII - Free Report) and Columbia Sportswear Company (COLM - Free Report) . In the same period, shares of VNCE, GIII and COLM have increased 31.5%, 8.8% and 1%, respectively.

CROX’s Share Price Performance VS Peers
Image Source: Zacks Investment Research

Closing at $132.47 in the last trading session, CROX stock stands 5.7% below its 52-week high of $140.42 reached on July 17, 2026. CROX is trading above its 50-day simple moving average of $120.99 and its 200-day simple moving average of $95.95, indicating a strong technical setup.

CROX Trades Above 50 & 200-Day SMA
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Crocs Drives Growth Through Global ExpansionCrocs remains optimistic about its international business, expecting strong growth across its international markets for the remainder of the year and seeing a multiyear runway for expansion in key markets. Management highlighted particularly robust performance in Japan and China, noting that both continue to deliver very strong growth and reinforce the company's long-term global opportunity.

To support future growth, the company is also investing in marketing across both brands to drive demand for new product launches. At the same time, Crocs is maintaining a disciplined approach to inventory and supply chain management, using lean inventory levels to improve productivity and enhance financial flexibility.

Crocs Reports Margin Pressure and Weak Brand PerformanceDespite these long-term growth opportunities, the company is facing the impact of the Middle East conflict and expects these impacts to create several challenges for the Crocs brand. Management identified three potential areas of impact: lower revenue from its Middle East distributor business, which has already been incorporated into its annual guidance; higher raw material and transportation costs associated with elevated oil prices; and the possibility of broader macroeconomic disruptions, the extent of which remains uncertain. These factors could create additional headwinds for the business going forward.

The company faced margin pressure in the first quarter of fiscal 2026, with enterprise adjusted gross margin declining 90 basis points year over year to 56.9%. The decrease was primarily driven by a 100-basis-point impact from incremental tariffs, along with an unfavorable product mix. These headwinds were only partially offset by a favorable brand mix, resulting in an overall decline in gross margin in the first quarter.

Crocs reported weaker performance across both of its key brands in the first quarter of fiscal 2026 while continuing to execute initiatives to return both brands to growth. Sales at the Crocs brand declined 2%, while the HEYDUDE brand recorded a steeper 13% decrease. Both brands reported lower adjusted gross margins in the quarter. Adjusted gross margin for the Crocs brand declined 120 basis points to 59.5%, while the HEYDUDE brand experienced a steeper contraction of 210 basis points, bringing its adjusted gross margin to 44.5%.

Crocs issued a cautious outlook, expecting second-quarter revenues to decline slightly at prevailing currency rates, with continued weakness at the HEYDUDE brand and margin pressure from tariffs. For 2026, the company projects muted enterprise revenue growth between down 1% and up 1%, while HEYDUDE is still expected to post a 5% to 7% sales decline despite an improved outlook.

How Estimates Are Shaped Up for CROX?The Zacks Consensus Estimate for CROX’s current quarter earnings per share has been revised up by 2 cents to $4.32 in the past seven days. The consensus mark for the current year earnings per share has been revised down by a penny to $13.66, reflecting a challenging outlook for the year.

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CROX is currently trading at a forward 12-month P/E multiple of 9.29X, lower than the industry average of 15.70X and well below the S&P 500 multiple of 20.80X. However, the stock is trading above its 12-month median P/E of 7.11X, suggesting potential overvaluation relative to its historical valuations.

Crocs’ Valuation Picture
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How to Play CROX Stock?Although Crocs continues to see attractive long-term opportunities in international markets, the business is facing mounting near-term challenges that could weigh on financial performance and investor sentiment. Weakening brand momentum and pressure on profitability reduce visibility into the pace of any meaningful recovery, while ongoing macroeconomic uncertainties create additional pressures. Given these risks, existing investors may consider reducing exposure, while prospective investors may prefer to remain on the sidelines until there is clearer evidence of sustained improvement in operating performance and a more favorable business environment. At present, CROX carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Crocs, Inc. (NASDAQ:CROX) has received a higher price target from Bank of America ahead of its second-quarter earnings report, with the firm reiterating its ‘Buy’ rating and raising its target to $160 from $145 on expectations that sustained direct-to-consumer (DTC) growth in North America could support further valuation expansion.

The firm increased its valuation multiple to 11 times its 2027 earnings estimate from 10 times previously, writing that additional evidence of durable North American DTC growth could drive further multiple expansion.

This price target implies upside from current levels of about $132.

Bank of America forecasts Q2 earnings per share of $4.24, broadly in line with Visible Alpha consensus estimates.

The firm sees the potential for upside in the quarter, supported by continued DTC momentum and an improving setup for the second half of the year as the company laps strategic actions taken last year that weighed on sales.

The analysts expect total second-quarter sales to decline 1% year over year, with growth in the Crocs brand's DTC business offset by weaker wholesale sales and continued declines at Heydude. They forecast North American DTC sales to rise 1%, below the Street's expectation of 2%, but noted that demand for newer products, including sandals, could support stronger results.

Bank of America highlighted continued consumer interest in new product launches, pointing to popular sandal styles such as the Miami Flip, where it has observed products selling out even after restocking.

On margins, the firm expects gross margin to decline 150 basis points year over year, in line with company guidance that incorporates tariff-related headwinds. While lower tariff rates and the potential for refunds could provide some relief, the analysts wrote that a greater contribution from newer products and sales channels with lower gross margins could offset those benefits.

Looking beyond the second quarter, Bank of America expects a more favorable operating environment in the second half of the year, supported by upcoming product launches, including the Echo 2 and Mellow 2 collections, and easier comparisons following last year's reductions in promotional activity and wholesale shipments.

The firm also sees the possibility that improving demand for new products could eventually benefit North American wholesale sales, although its current forecasts continue to assume negative wholesale trends through the remainder of 2026.

The market expects Crocs (CROX - Free Report) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis footwear company is expected to post quarterly earnings of $4.32 per share in its upcoming report, which represents a year-over-year change of +2.1%.

Revenues are expected to be $1.15 billion, down 0.2% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.34% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Crocs?For Crocs, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.12%.

On the other hand, the stock currently carries a Zacks Rank of #4.

So, this combination makes it difficult to conclusively predict that Crocs will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Crocs would post earnings of $2.78 per share when it actually produced earnings of $2.99, delivering a surprise of +7.55%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Crocs doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Key Takeaways Crocs' LEGO Brick Clog drove strong social engagement and digital traffic.LoveShackFancy sold out globally, while Disney boosted accessories and premium Jibbitz charms.TikTok Shop expansion and Gen Z campaigns helped Crocs attract younger consumers and support DTC momentum. Strategic partnerships have been Crocs Inc.'s (CROX - Free Report) most effective tools for reinforcing brand relevance and expanding its appeal beyond its traditional customer base. In the first quarter of 2026, management highlighted collaborations as a key component of its consumer engagement strategy, using limited-edition launches, entertainment franchises and digital campaigns to create excitement around the brand. The company's multi-year global partnership with LEGO debuted with the LEGO Brick Clog, which management described as one of Crocs' best-performing partnerships on social media, generating significant consumer engagement and digital traffic.

Crocs also complemented this initiative with collaborations that directly supported product innovation. The LoveShackFancy collection sold out globally, reinforcing the demand for newer silhouettes such as the Classic Ballet Flat. At the same time, the Disney collaboration featuring Mickey Mouse helped drive strong growth in bags, accessories and premium Jibbitz charms, demonstrating that partnerships can extend spending beyond footwear into higher-margin personalization categories.

Management indicated that these initiatives contributed to strong consumer response across multiple product categories, including clogs, sandals and accessories, supporting the company's broader diversification strategy.

Beyond products, Crocs is using partnerships to deepen digital engagement. The company expanded its presence on TikTok Shop globally and was recognized as the platform's Top Seller of the Year for 2025. It also introduced innovative marketing campaigns, including a Gen Z-focused micro-drama series and experiential launches tied to events such as NBA All-Star Week.

Management believes that these collaborations and marketing activations are helping attract younger consumers while strengthening direct-to-consumer momentum. As Crocs broadens its product portfolio and global reach, strategic partnerships appear to be doing more than creating short-term buzz. They are reinforcing brand visibility, supporting product innovation and helping the company differentiate itself in an increasingly competitive casual footwear market.

Zacks Rundown for CROXCrocs’ shares have jumped 26.8% in the past three months against the industry’s decline of 3.2%.

Image Source: Zacks Investment Research

From a valuation standpoint, CROX trades at a forward price-to-earnings ratio of 8.94X, lower than the industry’s average 14.65X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CROX’s 2026 and 2027 EPS estimates imply year-over-year growth of 9.3% and 7.7%, respectively. The consensus mark for 2026 and 2027 EPS has been unchanged in the past 30 days.

Image Source: Zacks Investment Research

CROX stock presently carries a Zacks Rank #4 (Sell).

Stocks to Consider in the Consumer Discretionary SpaceDuluth Holdings Inc. (DLTH - Free Report) is a specialty apparel retailer known for its durable, workwear-inspired clothing and accessories, serving men and women through its Duluth Trading brand across direct-to-consumer channels and retail stores. At present, the company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for DLTH’s current fiscal-year earnings implies growth of 39.5% from the year-ago reported figure. Duluth Holdings has delivered a trailing four-quarter earnings surprise of 107.5%, on average.

Steven Madden Ltd. (SHOO - Free Report) designs, sources, markets and sells fashion-forward branded and private-label footwear, accessories, handbags and apparel for women, men and children across the world. SHOO currently flaunts a Zacks Rank #1.

The Zacks Consensus Estimate for Steven Madden’s current fiscal-year sales and earnings implies growth of 11.7% and 22.9%, respectively, from the year-ago reported figures. SHOO delivered a trailing four-quarter negative earnings surprise of 1.9%, on average.

Columbia Sportswear Company (COLM - Free Report) engages in the design, development, marketing and distribution of outdoor, active and lifestyle products in the United States, Latin America, the Asia Pacific, Europe, the Middle East, Africa and Canada. At present, COLM has a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for COLM’s current fiscal-year sales and earnings implies growth of 2.6% and 4.6% from the year-ago reported numbers. COLM delivered a trailing four-quarter earnings surprise of 44.1%, on average.

In the latest close session, Crocs (CROX - Free Report) was down 1.69% at $122.44. The stock's performance was behind the S&P 500's daily loss of 0.28%. Meanwhile, the Dow lost 1.09%, and the Nasdaq, a tech-heavy index, added 0.2%.

The footwear company's shares have seen a decrease of 2.52% over the last month, not keeping up with the Consumer Discretionary sector's gain of 1.44% and the S&P 500's gain of 1.64%.

Analysts and investors alike will be keeping a close eye on the performance of Crocs in its upcoming earnings disclosure. The company is forecasted to report an EPS of $4.3, showcasing a 1.65% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.15 billion, down 0.26% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.67 per share and revenue of $4.08 billion. These totals would mark changes of +9.27% and +0.88%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Crocs. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Crocs presently features a Zacks Rank of #4 (Sell).

In terms of valuation, Crocs is presently being traded at a Forward P/E ratio of 9.11. This valuation marks a discount compared to its industry average Forward P/E of 15.89.

One should further note that CROX currently holds a PEG ratio of 1.29. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Textile - Apparel industry held an average PEG ratio of 2.18.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 198, which puts it in the bottom 20% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CROX in the coming trading sessions, be sure to utilize Zacks.com.