Shares of Crocs Inc. slipped 2.1 percent in pre-market trading after the clog maker posted a first quarter earnings report that was better than expected and raised full-year guidance.
Still, Crocs shares slipped 4.1 percent to $96.00. Investors didn’t like the guidance the company provided for its second quarter outlook.
Net income for the first quarter ended March 31 was down 14.1 percent to $137.6 million, or $2.71 a diluted share, from $160.1 million, or $2.83, in the same year-ago quarter. On an adjusted basis, diluted earnings per share (EPS) were $2.99. Revenues slipped 1.7 percent to $921.5 million from $937.3 million.
Wall Street was expecting adjusted diluted EPS of $2.77 on revenue of $900.9 million.
By brand, Crocs revenue were up 0.8 percent to $767 million. Direct-to-consumer revenue rose 12.9 percent to $322 million, while wholesale sales fell 6.5 percent to $446 million. North American revenue were down 6.1 percent to $346 million, but international revenue rose 7.2 percent to $421 million.
Hey Dude revenue fell 12.3 percent to $154 million. Direct-to-consumer revenue rose 8.6 percent to $71 million, while wholesale sales were down 24.7 percent to $83 million.
For 2026, the company said revenue is expected to be down between 1 percent to up 1 percent versus 2025 levels. That is better than the prior expectation of down 1 percent to up slightly when the Crocs posted fourth-quarter results. The Crocs brand was guided to flat to up 2 percent, and Hey Dude was forecasted at down 5 percent to down 7 percent, better than the prior guidance of down 7 percent to down 9 percent.
What investors weren’t happy about was second quarter guidance. The company forecasted revenue down slightly versus year-ago levels. Crocs brand was guided to up 1 percent to 3 percent, and Hey Dude expected at down 12 percent to down 14 percent.
“We are pleased to have started the year with better-than-expected results, fueled by broad consumer relevance for both of our brands and disciplined execution against our strategy,” CEO Andrew Rees said in a statement. “We delivered enterprise revenue of over $900 million including growth in our direct-to-consumer channels for both brands. We are encouraged by strong consumer response to product newness across categories, supported by our high pace of innovation and consistent brand storytelling.”
He added that the company remains confident in the long-term health of the business.
