Q2 2026 Crocs Inc Earnings Call Transcript
Key Points
- Record enterprise revenue of $1.2 billion, up 2% year-over-year, driven by broad consumer demand.
- Crocs brand exceeded $1 billion in quarterly revenue for the first time, with DTC up 12% and international up 7%.
- Strong direct-to-consumer growth for both brands, with HEYDUDE DTC up 7% despite lower marketing spend.
- Meaningful shareholder returns, including $251 million in share repurchases and a new $1.5 billion buyback authorization.
- Successful product diversification, with sandals becoming a $0.5 billion global business and strong performance in new franchises like Echo and Crocband.
- HEYDUDE brand revenue declined 6% year-over-year, though better than expected.
- Adjusted gross margin fell 170 basis points to 60%, primarily due to tariff impacts.
- North America Crocs brand wholesale continued to decline, with a managed approach to inventory optimization.
- A business model shift with a major marketplace partner will reduce reported revenue starting in Q3, creating near-term headwinds.
- Tariff headwinds persist, with a 300 basis point impact expected in Q4 2025, pressuring margins.
Good day, and welcome to the Crocs second-quarter 2026 earnings call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Abigail Ritter, Investor Relations. Please go ahead.
Good morning. Thank you for joining us to discuss Crocs Inc's second-quarter 2026 results. With me today are Andrew Rees, Chief Executive Officer, and Patraic Reagan, Executive Vice President and Chief Financial Officer. Following their prepared remarks, we will open the call for your questions, which we ask that you limit to one per caller. Before we begin, I would like to remind you that some of the information provided on this call is forward-looking and accordingly is subject to the safe harbor provisions of the federal securities laws. These statements involve known and unknown risks, uncertainties, and other factors which may cause our actual results, performance, or achievements to differ materially. Please refer to our most recent annual report on Form 10-K,
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