Crocs reported a 26.4% increase in third-quarter earnings to $3.69 per share, surpassing analyst expectations of $3.31, on revenues of $1.04 billion, which rose 4.6% year-over-year. The company's stock surged 30% since October 13, including a 25.5% jump after earnings were announced, driven by the turnaround of the HeyDude brand, which saw a 6.1% revenue growth.
Management has raised its full-year revenue guidance to a 3% increase from 2025, up from a previous estimate of 1% to 2%. Crocs' international revenue grew by 11.8%, outperforming expectations, particularly in markets like China, India, and Japan, which are viewed as underpenetrated.
CEO Andrew Rees attributed part of this success to effective social media marketing strategies, particularly on platforms like Douyin and TikTok. The company's product offerings, including affordable ballet flats, have resonated well with consumers, especially during economic pressures.
Analysts suggest that Crocs' stock remains reasonably valued at under 10 times forward earnings, with potential upside due to share buybacks not reflected in current guidance