Crocs, Inc. has experienced a significant stock surge, with shares increasing 14% in premarket trading after the company released its fourth-quarter earnings report. The footwear manufacturer reported adjusted earnings of $2.29 per share, which exceeded analyst expectations of $1.91 per share. Despite a revenue decline of 3.2% to $957.6 million, this figure was above the anticipated $916.9 million.
The performance of Crocs” two main brands showcased a contrasting narrative. The Crocs brand managed to achieve a modest sales increase of 0.8%, totaling $768 million. In contrast, the Heydude brand faced a significant downturn, with sales dropping 16.9% to $189 million during the quarter. This mixed performance raised concerns about the brand”s overall momentum, especially considering Crocs stock had depreciated by 22% throughout 2025.
CEO Andrew Rees highlighted international sales strength as a key factor in the company”s performance. “We ended 2025 on a strong note with a better-than-expected holiday quarter,” Rees stated. He emphasized that the company is implementing strategic measures to enhance its brands for long-term growth.
Looking ahead, Crocs provided an optimistic outlook for 2026, projecting adjusted earnings between $12.88 and $13.35 per share, surpassing the consensus estimate of $11.89. Revenue for the year is expected to stabilize, with projections indicating a slight decline of 1% to flat compared to 2025, while analysts had forecasted a more significant 1.9% decrease.
In the immediate future, the company anticipates adjusted earnings in the range of $2.67 to $2.77 per share for the current first quarter, with revenue expected to decline by 3.5% to 5.5% compared to the same period last year. Analysts had previously estimated adjusted earnings of $2.52 per share on revenue of $894.3 million.
The fourth quarter net income was reported at $105.2 million, equating to $2.03 per share, which starkly contrasts with the previous year”s net income of $368.9 million, or $6.36 per share. This notable decline is attributed to one-time items that inflated prior year results.
In conclusion, Thursday”s earnings report and the encouraging guidance for 2026 indicate that the iconic footwear brand may be regaining stability. The stock”s significant premarket gain reflects renewed investor confidence, bolstered by the company”s cost-saving initiatives and international growth strategies.
