Crocs, Inc. CEO Andrew Rees said in an earnings release that the company had a solid second quarter with both its Crocs and HeyDude brands contributing to the overall performance, while the company delivered the highest ever gross profit quarter in its history. But there was a big “but” in the CEO’s words as well.

“While we are pleased by this performance, the current operating environment is uncertain and challenging to predict,” Rees said. “Against this, we have chosen to focus on managing expenses including the $50 million in cost savings we have already implemented, reducing our inventory receipts, and pulling back on promotional activity to protect brand health in the marketplace. Although these actions will impact the topline of our business in the short term, they will position our business to win, drive margin dollars, and support continued cash flow generation longer term.”

CROX shares were down in the high teens percent in pre-market trading on Thursday, August 7.

Second Quarter 2025 Revenues
Consolidated revenues were $1.15 billion in the second quarter, an increase of 3.4 percent, or 2.7 percent on a constant-currency (cc) basis.

  • DTC (direct-to-consumer) revenues grew 4.0 percent, or 3.4 percent cc, year-over-year.
  • Wholesale revenues increased 2.8 percent (+2.0 percent cc) year-over-year.

Brand Summary

  • Crocs Brand: Revenues increased 5.0 percent year-over-year (y/y) to $960 million, or +4.2 percent y/y on a constant-currency (cc) basis.
    • Channel
      • DTC revenues increased 3.4 percent (+2.7 percent cc) y/y to $495 million.
      • Wholesale revenues increased 6.8 percent (+5.9 percent cc) y/y to $465 million.
    • Geography
      • North America revenues decreased 6.5 percent (-6.4 percent cc) y/y to $457 million.
      • International revenues increased 18.1 percent (+16.4 percent cc) y/y to $502 million.
  • HeyDude Brand: Revenues decreased 3.9 percent (-4.2 percent cc) y/y to $190 million.
    • Channel
      • DTC revenues increased 7.6 percent (+7.5 percent cc) to $90 million.
      • Wholesale revenues decreased 12.4 percent y/y to $100 million, or 12.8 percent on a constant-currency basis.

Second Quarter 2025 Operating Results

  • Gross margin, on a reported and adjusted basis, grew 30 basis points to 61.7 percent of sales in Q2, compared to 61.4 percent in Q2 2024.
  • Selling, general, and administrative expenses (SG&A) of $1,136 million increased 219.0 percent from $356 million in Q2 2024, and represented 98.9 percent of revenues compared to 32.0 percent. The increase in SG&A is largely driven by noncash impairment charges related to the indefinite-lived HeyDude trademark and HeyDude Brand reporting unit goodwill of $430 million and $307 million, respectively, during the three months ended June 30, 2025.
    • Adjusted SG&A of $399 million increased 12.1% from $356 million and represented 34.7 percent of revenues compared to 32.0 percent.
  • Loss from operations of $428 million decreased 231.2 percent from income from operations of $326 million, resulting in operating margin loss of 37.2 percent compared to 29.3 percent. The loss from operations is driven by asset impairments.
    • Adjusted income from operations of $309 million decreased 5.0 percent y/y from $326 million in Q2 2024, resulting in Adjusted operating margin of 26.9 percent in Q2, compared to 29.3 percent in Q2 2024.
  • Diluted loss per share of $8.82 in Q2 compared to diluted earnings per share of $3.77 in Q2 2024. The loss per share was said to be driven by asset impairments.
    • Adjusted diluted earnings per share of $4.23 compared to $4.01 per diluted share in Q2 2024.

Balance Sheet and Cash Flow
(June 30, 2025, as compared to June 30, 2024)

  • Cash and cash equivalents were $201 million compared to $168 million.
  • Inventories were $405 million compared to $377 million.
  • Total borrowings were $1,379 million compared to $1,530 million.
  • Capital expenditures were $32 million compared to $33 million.

“Our strong cash flow generation enabled us to return shareholder value through $133 million in share repurchases, and $105 million in debt paydown,” Rees noted.

CROX repurchased approximately 1.3 million shares for $133 million at the average share price of $102.24. At quarter-end, approximately $1.1 billion of share repurchase authorization remained available for future repurchases.

Third Quarter 2025 Outlook
Crocs, Inc. said in its earnings release that given the continued uncertainty from evolving global trade policy and related pressures around the consumer, the company will only be providing third quarter guidance.

For the third quarter of 2025, CROX expects:

  • Revenues to be down approximately 11 percent to 9 percent compared to the third quarter of 2024, at currency rates as of August 4, 2025.
  • Adjusted operating margin of approximately 18 percent to 19 percent, including an anticipated negative impact of approximately 170 basis points from announced and pending tariffs.

Image courtesy Crocs / Crocs, Inc.