Crocs gets crushed despite Q2 beat as cloudy outlook spooks Wall Street
Foam clogs are still selling — but not enough to calm investors’ nerves as the company faces tariffs and cooling demand.
Crocs shares sank 25% Thursday after the funky foam clog maker beat second-quarter estimates but offered a murky outlook.
Adjusted diluted earnings per share came in at $4.23, ahead of Wall Street’s $4.00 forecast. Revenue rose about 3.45% to $1.14 billion, in line with analyst forecasts.
While international demand popped 18%, North America, which accounts for about half of Crocs’ revenue, fell 6.5% to $457 million.
The bigger concern? The future. In May, Crocs pulled its full-year guidance due to tariff uncertainty. Execs doubled down on that cautious tone during Q2 results. For the third quarter, Crocs expects revenue to decline between 9% and 11%, a steeper drop than the 7% slide analysts predicted.
“While we are pleased by this performance, the current operating environment is uncertain and challenging to predict,” CEO Andrew Rees said. “We’ve chosen to focus on managing expenses, reducing inventory receipts, and pulling back on promotions to protect brand health.”
Crocs also expects a $40 million hit from tariffs in the second half the year and about $90 million annually, assuming rates hold.
