U.S. footwear maker Crocs, Inc. reported full-year 2025 revenue of more than $4 billion, exceeding market expectations despite a slight year-on-year decline, as strong international growth in its core Crocs brand helped counter continued weakness in wholesale channels and at its HeyDude business.
The Colorado-based company posted annual revenue of approximately $4.04 billion, down marginally from the previous year. The dip reflected softer wholesale demand, particularly in North America, and ongoing challenges at HeyDude, which has faced slowing sell-through and inventory adjustments among retail partners.
Fourth-quarter revenue totaled about $950 million, slightly below the same period a year earlier but ahead of analyst forecasts, supporting investor confidence. Direct-to-consumer sales, including e-commerce and company-operated stores, delivered steady growth and remained a key margin driver for the group.
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International markets were a standout performer for the Crocs brand, recording double-digit growth across parts of Europe and Asia. The company said global brand demand, product innovation and targeted marketing campaigns supported its performance overseas, partially offsetting pressure in the U.S. wholesale segment.
Profitability, however, was weighed down by impairment charges tied to HeyDude and restructuring-related costs, underscoring the challenges of integrating and repositioning the acquired brand. Management reiterated its focus on restoring momentum at HeyDude while continuing to prioritize disciplined inventory management and operational efficiencies.
Shares in Crocs rose following the earnings release, as investors welcomed the revenue beat and resilient international growth. Looking ahead to 2026, the company issued cautious guidance, citing macroeconomic uncertainty and uneven consumer spending, but said it expects continued strength in direct-to-consumer channels and overseas markets to underpin performance.
The results highlight Crocs’ reliance on its flagship brand and international expansion strategy to navigate a challenging retail landscape marked by wholesale softness and shifting consumer demand.
