Crocs Surges 26% After Q3 Beat and Third Consecutive Guidance Raise as HEYDUDE Returns to Growth

Crocs Inc. shares jumped roughly 26% on October 29 after the footwear company reported third-quarter results that topped Wall Street estimates on both revenue and earnings, and raised its full-year guidance for the third time in 2026. Revenue came in at $1.04 billion, up 4.6% year over year and above the $1.00 billion consensus estimate, while adjusted EPS of $3.69 beat the $3.30 estimate by a wide margin and grew 26.4% from the same period a year ago. Adjusted gross margin expanded 180 basis points to 60.3%, and adjusted operating margin widened 150 basis points to 22.3%.

The headline development was HEYDUDE returning to growth after more than two years of declines. HEYDUDE revenue rose 6.1% year over year to $170.0 million, driven by 14% wholesale growth as retailers increased orders and restocked inventory. The core Crocs brand posted $873.0 million in revenue, up 4.4%, led by 12% international revenue growth and a 24% jump in international direct-to-consumer sales. Free cash flow reached $275.5 million in the quarter, and the company repurchased 2.0 million shares for $250.0 million.

For the fourth quarter, management guided revenue growth of 7% to 9%, adjusted EPS of $3.25 to $3.45 against a $3.10 estimate, and adjusted operating margin of approximately 20.5%. HEYDUDE revenue is expected to grow 10% to 12% in Q4, though easier comparisons following last year's inventory cleanup are a contributing factor. Full-year 2026 adjusted EPS guidance was raised to $14.45 to $14.65, up from the prior range of $13.70 to $14.00 and above the $13.95 consensus, while full-year revenue growth guidance moved to approximately 3% from the prior range of 1% to 2%.