Crocs CEO says its "working to re-gain momentum" after revenue declines

Footwear company Crocs Inc. has reported lower revenues and earnings for the third quarter of 2025. For the three months ended 30 September 2025, consolidated revenues fell 6.2% year-on-year to $996 million (£758.5 million).

Gross margin declined 110 basis points to 58.5%, while operating income was down by 23% to $208 million (£158 million), representing an operating margin of 20.8%.

Despite the dip, the company generated strong cash flow, repurchasing 2.4 million shares worth $203 million (£154 million) and paying down $63 million (£48 million) of debt during the quarter.

In terms of brands, revenues for the Crocs brand declined 2.5% to $836 million (£636 million). DTC revenues rose 2% to $472 million (£664 million), while wholesale decreased 7.9%. International markets remained a growth driver, with sales up 5.8% to $389 million (£296 million). This offset an 8.8% decline in North America.

Heydude revenues fell 21.6% to $160 million (£121 million), reflecting a 38.6% drop in wholesale sales. DTC revenues were relatively stable, down just 0.5% to $91 million (£69 million).

Andrew Rees, Chief Executive Officer, said: "Our third-quarter performance was driven by disciplined execution against our brand strategies, as well as greater product and go-to-market innovation... While our results came in ahead of expectations, we believe both of our brands have greater potential, and are working to re-gain momentum in the marketplace."

Looking ahead, the US-based company expects fourth-quarter revenues to decline around 8% year-on-year. The Crocs brand is projected to be down approximately 3%, while Heydude is expected to decrease in the mid 20% range.

"As we look forward, in addition to the $50 million of gross cost savings in 2025, we have identified an incremental $100 million of gross cost savings, and are committed to driving operating leverage in 2026," Rees concluded.