Crocs Inc. on Thursday raised full-year guidance after posting better-than-expected first quarter results, as 2026 will also be the first year it becomes a predominantly international-driven firm.
CEO Andrew Ress said during a morning conference call to investors that revenue in 2026 will be “slightly more international this year for the first time than North America, as we feel great about that,” adding that Crocs had a “really strong quarter from an international perspective.”
The CEO cited growth countries such as China and Japan, noting double-digit growth in key Tier 1 countries where there is a “lot of white space in those areas.”
On the international front, Rees did provide some cautionary information about the potential impact on the business from the Middle East conflict.
“As of today, it’s too early to fully quantify the impact,” said he said during the call. Rees cited three ways that Crocs could be impacted. The first centers on the reduction of revenues from its Middle East distributor business, which Rees said “has been contemplated within our annual guidance.” The second centers on increased raw material and transportation costs due to elevated oil prices, he said. And the third possibility has to do with the broader impact to the global macro economy, which the CEO said remains “uncertain at this time.”
The CEO noted that high oil prices for a sustained period of time would result in “some upward cost pressure” to the resin component of the business. But he also suggested that transportation could turn into a bigger cost pressure. Rees also emphasized that the company has a “well diversified supply chain” and sourcing engine that enables some opportunities to mitigate the cost structure.
As for the business, Rees said the company’s best-in-class inventory management resulted in total footwear units down high single digits and overall inventory turning up more than 4 times.
The CEO also said the company is making “excellent progress against our five strategic pillars,” which include driving brand relevance for Crocs and scaling product outside of clogs through new category expansion. The Crocs clog franchises Crocband, Crafted and Echo performed well, he said, with the reintroduction of Crocband well received with strength seen across channels, colors and iterations. In scaling product outside of clogs, the brand’s sandal business is expected to reach $500 million in revenue this year, up double digits from 2025. Beyond sandals, the company also launched its classic ballet flat, which Rees said was a “notable sellout globally.”
Crocs has also been scaling and deepening its consumer touch points across both digital and social media, becoming the top seller of the year on TikTok Shop for 2025. And last month it activated its NBA All-Star week, introducing its updated Echo Clog, the Echo 2.0, in preparation for the product launch in the second half of 2026.
At Hey Dude, Rees said the company continues to “deliver against our three-pillar strategic plan,” which includes building a community focused on its core customer. He said the first quarter included several collaborations, including one in partnership with the Houston Rodeo that was supported by a retail presence at the rodeo for the third consecutive year. The brand was also one of the top growth sellers of 2025 on TikTok Shop. For spring, the brand is gaining traction in its sandal business, Rees said.
Patraic Reagan, executive vice president and CFO, commented on the U.S. Supreme Court ruling on tariff refunds, stating that the company believes it is “well positioned to collect refunds on the incremental tariffs we paid in 2025 and into this year,” but has not embedded any upside from this in its 2026 guidance.
BTIG research analyst Janine Stichter has a “Neutral” rating on shares of Crocs. While encouraged by the signs of stabilization at the Crocs brand, Hey Dude remained down 12 percent and wholesale down 25 percent even though performance was better than plan.
“We look to [the second half] as the litmus test for this brand (Hey Dude) returning to growth,” she wrote in a research note. She also noted that current full year guidance doesn’t include possible higher raw materials costs, which likely wouldn’t hit until 2027, or the effects from a broader macro-economic slowdown.
