Crocs has raised its full-year 2026 revenue outlook for the third consecutive time, after reporting a 4.6% increase in third-quarter sales and a return to growth at its HEYDUDE brand.
The footwear group reported consolidated revenues of $1.04 billion (£768 million) for the three months to 30 September, up 4.6% year on year on both a reported and constant currency basis.
The Crocs brand recorded revenue growth of 4.4% to $873 million (£643 million), supported by an 11.8% increase in international sales to $434 million (£320 million). North American revenue, however, fell 2.1% to $438 million (£323 million).
Direct-to-consumer (DTC) revenue for the Crocs brand increased 8.2% to $510 million (£376 million), while wholesale revenue declined 0.5% to $362 million (£267 million).
HEYDUDE returned to growth during the quarter, with revenue increasing 6.1% to $170 million (£125 million). Wholesale sales rose 14% to $79 million (£58 million), while DTC revenue was broadly flat at $91 million (£67 million).
The results mark a turnaround for HEYDUDE, which reported a 12.3% decline in revenue during the first quarter of 2026. The brand’s recovery has been supported by stronger-than-expected retailer orders, according to comments made by Crocs executives on the company’s earnings call.
Andrew Rees, Chief Executive Officer of Crocs, said: “The Crocs Brand delivered a record third quarter with revenues up 4%, led by double-digit international revenue growth and continued momentum across our product diversification strategy. HEYDUDE revenues grew 6%, marking an important milestone as we delivered on our commitment stated earlier in the year to return the brand to growth.”
Following the results, Crocs raised its full-year 2026 revenue growth forecast to approximately 3%, up from its previous expectation of growth between 1% and 2%. This is the third time the company has increased its outlook this year.
The company also reported an adjusted gross margin of 60.3%, up 180 basis points year on year, while adjusted diluted earnings per share increased 26.4% to $3.69.
During the quarter, Crocs repurchased approximately two million shares for $250 million (£184 million) and repaid a further $21 million (£15 million) of debt.
The results prompted a sharp rise in Crocs’ share price, which climbed approximately 27% on 29 October, reaching its highest level in two years, according to Reuters.