Q1 2026 Crocs Inc Earnings Call Transcript
Key Points
- Crocs Inc (CROX) delivered better-than-expected enterprise revenue of $921 million for the first quarter of 2026.
- The Crocs brand saw a healthy direct-to-consumer growth of 11%, despite pulling back on promotional activity.
- International revenue for the Crocs brand increased by 7%, with strong performance in China, India, Japan, and Western Europe.
- The company successfully managed inventory, with total footwear units down high single digits and inventory turning up more than 4 times.
- Crocs Inc (CROX) repurchased 800,000 shares, demonstrating a commitment to returning cash to shareholders.
- The Crocs brand revenue was down 2%, and the HEYDUDE brand revenue was down 13% compared to the previous year.
- The company faced increased raw material and transportation costs due to elevated oil prices, impacting profitability.
- HEYDUDE's wholesale channel declined by 26% as the company managed inventory levels.
- The conflict in the Middle East posed risks, including reduced revenues from the region and potential broader macroeconomic impacts.
- Adjusted gross margin decreased by 90 basis points, driven by incremental tariff impacts and product mix changes.
Good day, and welcome to the Crocs, Inc., first-quarter 2026 earnings conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Abigail Ritter, Investor Relations and Strategic Finance for Crocs, Inc. Please go ahead.
Good morning, and thank you for joining us to discuss Crocs, Inc., first-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 you limit to one question.
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
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