Crocs Q2 2025 Reports Record Gross Profit at $1.15 Billion Revenue

Crocs achieves its highest-ever quarterly gross profit while navigating challenges in a rapidly changing retail environment.

Crocs, the casual footwear leader and owner of both Crocs and HEYDUDE, released its second quarter 2025 financial update with growth in revenue, margin gains, and the biggest quarterly gross profit in the company’s history. Strong results in both direct-to-consumer and wholesale channels helped offset ongoing market challenges.

Q2 2025 Key Results

• Consolidated revenues: $1,149 million, up 3.4% from a year ago (2.7% on a constant currency basis)

• Direct-to-consumer (DTC) revenues: up 4.0% to $495 million; wholesale grew 2.8% to $465 million

• Reported and adjusted gross margin: climbed 30 basis points to 61.7%

• Adjusted diluted earnings per share: $4.23, up 5.5% from last year’s $4.01

• Record gross profit for the quarter

• Shareholder returns: $133 million in share repurchases, $105 million debt paid down

Andrew Rees, Chief Executive Officer said, “We reported a solid second quarter with both our Crocs and HEYDUDE brands contributing to our performance, while delivering the highest ever gross profit quarter in company history. Our strong cash flow generation enabled us to return shareholder value through $133 million in share repurchases and $105 million in debt paydown.”

Managing Uncertainty While Maintaining Brand Health

Despite achieving strong top and bottom-line results, Crocs remains cautious. The company is tracking macroeconomic headwinds and has implemented several cost-control measures.

Andrew Rees added, “While we are pleased by this performance, the current operating environment is uncertain and challenging to predict. In response, we have chosen to focus on managing expenses, including the $50 million in cost savings we have already implemented, reducing our inventory receipts, and scaling back 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.”

Brand Performance Overview

Crocs Brand:

• Revenues up 5.0% to $960 million; DTC up 3.4%, wholesale up 6.8%

• North America down 6.5% to $457 million, but international markets grew 18.1% to $502 million

HEYDUDE Brand:

• Revenues down 3.9% to $190 million

• DTC revenues increased 7.6%, wholesale down 12.4%

Balance Sheet and Cash Flow

• Cash and cash equivalents rose to $201 million

• Inventories increased to $405 million, supporting future growth

• Total borrowings down to $1,379 million from $1,530 million a year ago

Looking Ahead: Q3 2025 Outlook

Crocs expects revenues to decline by 9–11% in Q3 2025 compared to Q3 2024, reflecting macro and trade pressures (including new tariffs). Adjusted operating margin guidance stands at 18–19%.

A conference call to discuss the Q2 results takes place today, August 7, at 8:30 am ET. More details and replays can be found on the Crocs investor relations site.

Crocs continues to combine comfort with innovation, returning value to shareholders while navigating a tough operating landscape, and prepares for long-term growth across global markets.