Crocs, Inc. (CROX) SEC Filings & Earnings Calls

HEYDUDE brand continued weakness

“HEYDUDE Brand revenue declined 5.7% YoY in Q2 2026, and the brand has not returned to growth.”

Tariff exposure on imported goods

“The disproportionate impact of tariffs on HEYDUDE Brand products, which became evident in the second quarter of the fiscal year ended 2025.” · word for word

Wholesale revenue decline across both brands; HEYDUDE brand continues to decline.

“Wholesale revenues decreased 7.2%; HEYDUDE revenues decreased 5.7%.”

Gross margin contraction due to cost pressures.

“Gross margin decreased 230 bps; adjusted gross margin decreased 170 bps.”

Tariff exposure on key sourcing countries

“the United States (“U.S.”) has imposed tariffs on foreign imports from multiple countries, including, most relevant to us, a 10% tariff on all imports from Vietnam, China, Indonesia, India, and Cambodia, respectively.” · word for word

Consumer discretionary spending pressure

“We continue to operate in an environment where consumers are feeling the effects of elevated interest rates, inflation, and future expected price increases, among other things, and as a result, there is more pressure on discretionary spending.” · word for word

Geopolitical risk from Middle East conflict

“the conflict in the Middle East has caused, and may continue to cause, a reduction in our revenues for several of our distributor markets and an increase in the costs of raw materials and transportation associated with elevated oil prices.” · word for word

HEYDUDE brand revenue decline

“HEYDUDE Brand revenues decreased 12.3%, or 13.2% on a constant currency basis, compared to the same period in 2025.” · word for word

HEYDUDE brand continues to decline, with wholesale revenues down 24.7%.

“HEYDUDE Brand: Revenues decreased 12.3%... Wholesale revenues decreased 24.7%”

Gross margin pressure from mix shifts and cost headwinds.

“Adjusted gross margin decreased 90 basis points to 56.9%” · word for word

HEYDUDE brand impairment and underperformance

“Asset impairments were $738.1 million, primarily driven by the partial impairment of the HEYDUDE indefinite-lived trademark and HEYDUDE Brand reporting unit goodwill.” · word for word

Macroeconomic headwinds (tariffs, inflation, FX)

“These business challenges contributed to, among other things, incremental duties, incremental freight costs, and increased wages, particularly in our distribution centers.” · word for word

Revenue decline and margin pressure

“Revenues were $4,040.6 million for the year ended December 31, 2025, a 1.5% decrease compared to the year ended December 31, 2024. Gross margin was 58.3% in 2025 compared to 58.8% in 2024, a decrease of 50 basis points.” · word for word

SG&A deleverage

“As a percent of revenues, SG&A increased to 36.4% of revenues compared to 33.3% in 2024.” · word for word

HEYDUDE brand adjusted EBIT missed threshold

“HEYDUDE Brand adjusted EBIT (2): $143.8 million 40.0% $88.3 million (0.0% payout) 0.0%” · word for word

High tariff exposure on core manufacturing countries

“The United States has imposed tariffs on foreign imports from multiple countries, including an incremental tariff of 20%, 20%, 19%, 18%, and 19% on all imports from Vietnam, China, Indonesia, India, and Cambodia, respectively.”

HEYDUDE brand impairment risk

“Goodwill impairment 307,000 — (307,000) (100.0) %. Asset impairments 431,115 24,082 (407,033) (1,690.2) %.” · word for word

Supply chain concentration in Vietnam and China

“We pay the majority of our third-party manufacturers, located primarily in Vietnam and China, in USD.” · word for word

HEYDUDE brand impairment charges of $737M in FY2025; ongoing brand weakness.

“Non-cash impairment charges related to the indefinite-lived HEYDUDE trademark and HEYDUDE Brand reporting unit goodwill of $430 million and $307 million, respectively.” · word for word

HEYDUDE brand impairment and decline

“Asset impairments increased $714.0 million during the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to non-cash impairment charges in the current year of $430.0 million related to the indefinite-lived HEYDUDE trademark and $307.0 million for HEYDUDE Brand reporting unit goodwill.” · word for word

Tariff cost pressure on margins

“Gross margin decreased ... primarily due to unfavorable duties for both brands as a result of the aforementioned incremental tariffs.”

Consumer discretionary spending pressure

“We continue to operate in an environment where consumers are feeling the effects of elevated interest rates, inflation, and future expected price increases, among other things, and as a result, there is more pressure on discretionary spending.” · word for word

HEYDUDE brand continued deterioration with wholesale down 38.6%

“HEYDUDE Brand revenues decreased 21.6%; Wholesale revenues decreased 38.6%”

Inventory build-up despite revenue decline

“Inventories increased to $397M from $367M while revenues declined”