Both the Crocs and Hey Dude brands gave Crocs Inc. something to brag about in the second quarter.
“We reported a solid second quarter with both our Crocs and Hey Dude brands contributing to our performance, while delivering the highest ever gross profit quarter in company history,” said Crocs CEO Andrew Rees in a statement.
Rees added that strong cash flow generation allowed the company to return shareholder value through $133 million in share repurchases and $105 million in debt pay-down.
And while the company bested Wall Street’s expectations on both adjusted diluted earnings per share (EPS) and revenue, Rees expressed caution over third quarter forecasts.
“While we are pleased by this performance, the current operating environment is uncertain and challenging to predict,” the CEO said. “Against this, we have chosen to focus on managing expenses including the $50 million in cost savings we have already implemented, reducing our inventory receipts, and pulling back on promotional activity to protect brand health in the marketplace.”
He explained that while the actions will impact the topline of the business over the short term, they will position the business to drive margin dollars and support continued cash-flow generation over the longer term.
The net loss for the second quarter ended June 30 was $492.3 million, or $8.82 a diluted share, against net income of $228.9 million, or $3.77, in the same year-ago period. On an adjusted basis, the diluted EPS was $4.23. Revenues for the quarter rose 3.4 percent to $1.15 billion from $1.11 billion. Direct-to-consumer (DTC) revenues grew 4 percent, while wholesale revenues rose 2.8 percent.
Wall Street was expecting adjusted diluted EPS of $4.02 on revenue of $1.14 billion.
By brand, Crocs revenues for 5 percent to $960 million. DTC revenues were up 3.4 percent to $495 million, while wholesale revenues increased 6.8 percent to $465 million. North American revenues fell 6.5 percent to $457 million, while international revenues rose 18.1 percent to $502 million.
At Hey Dude, revenues fell 3.9 percent to $190 million. DTC revenues rose 7.6 percent to $90 million, while wholesale revenues were down 12.4 percent to $100 million.
For the six months, the net loss was $332.2 million, or $5.94 a diluted share, against net income of $381.4 million, or $6.26, a year ago. Revenues rose 1.8 percent to $2.09 billion from $2.05 billion.
For the third quarter, the company continues to expect uncertainty from evolving global trade policy around the consumer. Crocs guided third quarter revenues to be down 9 percent to 11 percent, at currency rates as of Aug. 4, 2025.
The company ended the quarter with cash and cash equivalents totaling $201 million, versus $168 a year ago. Inventories were higher at $405 million versus $377 million last year. Total borrowings fell to $1.38 billion, compared to $1.53 billion last year.
The company last week opened its new Icon store in the Soho neighborhood of New York. The store at 543 Broadway features immersive storytelling, with the concept enabling the brand to host shopping events to create experiential theater for Crocs fans.
Last month, the company said Crocs is collaboration with Aries again on an urban-inspired collection, which follows its 2023 partnership. The collaboration follows partnerships earlier in the year that include a limited edition with Marimekko for spring. The company also has evolved its Crocs Trailbreak, a water friendly trail sandal from 2010 with a 2.0 version. The updated version is a robust trail shoe — sneaker-sandal hybrid — that launched Crocs new Exp line. Crocs Exp reimagines archival silhouettes, while incorporating the spirit of innovation.
