Why Crocs Stock Skyrocketed Today

Shares of Crocs (CROX +25.54%) leaped more than 25% on Thursday after the footwear designer announced revenue and profits that surpassed investors’ expectations.

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Crocs’ revenue rose 4.6% year over year to over $1 billion in the third quarter.

The company’s namesake Crocs Brand saw sales grow by 4.4% to $873 million, driven by an 8.2% rise in direct-to-consumer revenue. International markets enjoyed particularly strong growth, with sales climbing 11.8% to $434 million.

Additionally, the casual footwear maker’s previously struggling HeyDude brand returned to growth. HeyDude sales were up 6.1% to $170 million, fueled by a 14% jump in wholesale revenue to $79 million.

“We delivered a strong third quarter with growth across brands, channels, and geographies,” CEO Andrew Rees said.

$150.26+$30.57 (+25.54%)

NASDAQ · As of 4:00 PM ET 10/29/26

Better still, higher average selling prices, tighter inventory controls, and efficiency initiatives are helping to expand Crocs’ profit margins. Adjusted gross margin improved to 60.3% from 58.5% in the year-ago quarter.

Crocs’ adjusted operating income, in turn, climbed 11.7% to $232 million, while its adjusted earnings per share jumped 26.4% to $3.69. That was well above Wall Street’s estimates of $3.31.

Crocs also generated more than $275 million in free cash flow. This bountiful cash production is enabling the company to reward shareholders with sizable stock buybacks. Crocs has repurchased a whopping 37% of its shares over the past decade.

Accelerating growth

Looking ahead, management expects sales growth to accelerate to 7%-9% in the fourth quarter, with Crocs Brand sales up 6%-8% and HeyDude Brand sales up 10%-12%. Crocs is also targeting fourth-quarter adjusted earnings per share of $3.25 to $3.45.

Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.