Crocs (CROX) Stock Jumps 14% After Beating Q4 Earnings Expectations

TLDR

• Crocs reported Q4 adjusted earnings of $2.29 per share, beating analyst estimates of $1.91 per share, while revenue fell 3.2% to $957.6 million but topped expectations of $916.9 million.
• The Crocs brand grew sales 0.8% to $768 million while Heydude brand sales dropped 16.9% to $189 million during the quarter.
• Shares jumped 14% in premarket trading to $94.24 after the company provided full-year guidance above Wall Street expectations.
• Crocs expects 2026 adjusted earnings of $12.88 to $13.35 per share versus analyst estimates of $11.89, with revenue projected down 1% to flat compared to 2025.
• The company identified $100 million in cost savings for 2026 to boost efficiency and continue investing in its brands.

Crocs delivered a better-than-expected fourth quarter on Thursday, sending shares soaring 14% to $94.24 in premarket trading. The footwear company beat Wall Street’s earnings and revenue forecasts despite a mixed performance across its two main brands.

The company posted adjusted earnings of $2.29 per share for the quarter. That crushed analyst expectations of $1.91 per share. Revenue came in at $957.6 million, down 3.2% from the prior year but well ahead of the $916.9 million analysts had predicted.

Crocs, Inc., CROX

The earnings beat comes after Crocs stock slumped 22% throughout 2025. Investors had grown concerned about slowing momentum for the clog maker. Thursday’s results suggest those fears may have been overblown.

Brand Performance Diverges

The quarter showed a clear split between Crocs’ two brands. The namesake Crocs brand posted sales growth of 0.8% to reach $768 million. That modest gain kept the core business moving forward.

Heydude told a different story. The casual footwear brand saw sales plunge 16.9% to $189 million. The decline weighed on overall company results but wasn’t enough to derail the quarter.

Crocs is banking on $100 million in cost savings this year. The efficiency push aims to free up cash for continued brand investments. Rees said the moves give the company greater confidence in its growth drivers heading into 2026.

2026 Outlook Tops Estimates

The guidance Crocs provided for the full year got investors excited. The company expects adjusted earnings of $12.88 to $13.35 per share for 2026. That range sits well above the $11.89 consensus estimate from Wall Street analysts.

Revenue is projected to finish down about 1% to slightly positive for the year. Analysts had been modeling for a 1.9% decline to $3.97 billion. The better-than-feared outlook suggests Crocs sees stabilization ahead.

For the current first quarter, the company guided for adjusted earnings of $2.67 to $2.77 per share. Revenue is expected to fall 3.5% to 5.5% compared to last year. Analysts had forecast adjusted earnings of $2.52 per share on revenue of $894.3 million, representing a 4.6% decline.

Net income for the fourth quarter totaled $105.2 million, or $2.03 per share. That compared to $368.9 million, or $6.36 per share, in the year-ago period. The sharp decline reflects one-time items that boosted the prior year’s results.

The quarter caps a challenging 2025 for Crocs. The stock had fallen after the company’s previous two earnings reports. Concerns mounted about whether demand for the distinctive clogs was finally fading.

Thursday’s results and upbeat guidance suggest the ugly-shoe trend still has legs. The double-digit premarket gain indicates investors are willing to give Crocs another look. The company’s cost-cutting plan and international growth provide potential catalysts for 2026.

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