Crocs (CROX) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 enterprise revenue of $1.18 billion, up 2.6% year-over-year, with Crocs Brand surpassing $1 billion in quarterly revenue for the first time, driven by strong DTC growth and international expansion.

• Raised full-year 2026 outlook for both revenue and earnings, reflecting robust first-half performance and broad consumer demand.

• Significant capital returned to shareholders via $251 million in share repurchases and $31 million in debt paydown; share repurchase authorization increased by $1.5 billion, bringing total to $2 billion.

• Strong consumer demand and successful product diversification, especially in sandals and new clog franchises, supported growth.

Financial highlights

• Q2 2026 consolidated revenues: $1.18 billion (+2.6% year-over-year); DTC revenues up 12%, wholesale down 7.2%.

• Adjusted gross margin: 60.0% (down 170 bps YoY); GAAP gross margin: 59.4% (down from 61.7%).

• Adjusted operating margin: 25.1% (down 180 bps YoY); adjusted operating income: $296 million (-4.5% YoY).

• Adjusted diluted EPS: $4.55 (up 8% YoY); GAAP diluted EPS: $4.13 (vs. loss of $8.82 prior year).

• Free cash flow for Q2: $331 million; cash and equivalents: $170 million; inventories: $389 million.

Outlook and guidance

• Full-year 2026 revenue expected to increase 1–2%; Crocs Brand up 2–3%, HEYDUDE down 2–4%.

• Adjusted diluted EPS guidance raised to $13.70–$14.00; adjusted operating margin to expand modestly from 22.3%.

• Q3 2026 revenues expected to be flat year-over-year; adjusted EPS $3.20–$3.30.

• Capital expenditures projected at $70–$80 million for the year.

• Approximately $70 million in tariff refunds anticipated, with $20 million received post-quarter and to be recognized in Q3 2026.