Crocs stock falls after cautious third-quarter guidance

Published 07/08/2025, 12:08
© Reuters.

Investing.com -- Crocs (NASDAQ:CROX) stock tumbled 11.5% in pre-market U.S. trade Thursday after the footwear maker issued disappointing guidance for the third quarter, overshadowing better-than-expected second-quarter results.

The Colorado-based company reported second-quarter adjusted earnings per share of $4.23, surpassing the Bloomberg Consensus estimate of $4.00 and improving from $4.01 in the same period last year. Revenue rose 3.4% YoY to $1.15 billion, slightly ahead of the $1.14 billion analyst forecast.

Despite the earnings beat, Crocs projected third-quarter revenue to decline between 9% and 11% compared to the same period last year. The company cited "continued uncertainty from evolving global trade policy and related pressures around the consumer" as reasons for the cautious outlook.

The footwear maker also forecast third-quarter adjusted operating margin of approximately 18% to 19%, which includes an anticipated negative impact of about 170 basis points from announced and pending tariffs.

For the second quarter, Crocs posted an adjusted gross margin of 61.7%, up from 61.4% YoY and above the 60.6% estimate. However, adjusted operating margin fell to 26.9% from 29.3% in the prior-year period, though still exceeding the 26% analyst expectation.

Adjusted operating income decreased 5% YoY to $309.5 million, while adjusted net income declined 2.5% to $237.5 million. 

The company did not provide full-year guidance due to market uncertainties.

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