On a constant currency basis, sales increased by 1.4 percent.
Crocs said it was withdrawing its guidance for the full year amid macroeconomic uncertainties tied to global trade policies, despite its better-than-expected sales performance in the first quarter of the year.
“We are incredibly proud of our better-than-expected first quarter performance despite what has been an increasingly volatile macroeconomic backdrop since the onset of the year,” commented Andrew Rees, CEO. “While we are pleased by the performance of our overall business in April, the new global trade environment as well as business and consumer uncertainty, has made it challenging to predict how consumers may respond in the future.”
Crocs enterprise sales in the three months ended March 31 were basically flat compared to the year earlier, inching down to $937.3 million from $938.6 million, but were better than guidance for a roughly 3.5 percent decline. On a constant currency basis, sales increased by 1.4 percent.
Revenues at the Crocs brand increased by 2.4 percent to $761.6 million and were 4.2 percent higher at constant rates. By channel, Crocs brand direct-to-consumer (DTC) revenues increased by a reported 1.1 percent, or 2.5 percent on a constant-currency basis, to $284.8 million. Wholesale revenues grew by 3.2 percent to $476.8 million, or 5.3 percent at constant rates.
While the brand’s North America revenues decreased by 3.8 percent to $368.5 million, or by 3.4 percent at constant revenues, international revenues grew by 8.9 percent to $393.1 million and were 12.3 percent higher on a constant currency basis.
Heydude brand revenues decreased by 9.8 percent to $175.7 million, reflecting a 9.5 percent constant-currency decline, as growth in DTC was more than offset by softer wholesale sales. DTC revenues rose by 8.3 percent on both a reported and constant-currency basis to reach $65.0 million. Wholesale revenues decreased by 17.9 percent to $110.7 million, or 17.4 percent at constant rates.
The company’s quarterly gross margin widened by 2.2 percentage points to 55.6 percent while adjusted gross margin expanded by 1.8 percentage points to 57.8 percent. Selling, general and administrative expenses increased by 7.8 percent to $318.6 million, growing to 34.0 percent of revenues compared to 31.5 percent in the first quarter of 2025.
Income from operations decreased by 1.5 percent to $223.0 million. Net income grew to 4160.1 million from $152.5 million. Diluted earnings per share increased by 13.2 percent to $2.50 as adjusted diluted EPS edged down to $3.00 from $3.02.
