Crocs Tightens Up After Soft Quarter, Eyes 2026 Rebound

This article first appeared on GuruFocus.

Crocs (NASDAQ:CROX) is looking to be taking a step back to move forward.

The popular retail player eported about $1 billion in Q3 revenue, down 7% from last year, as the Crocs brand slipped 3% and HEYDUDE fell 22%. C

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Consequently CEO Andrew Rees feels the focus now is on discipline which involves cutting costs, managing inventory, and setting up for a healthier 2026. We delivered very strong profitability and cash flow, he said, adding that Crocs repurchased 2.4 million shares and paid down $63 million in debt last quarter.

While U.S. demand remains soft, Crocs is seeing bright spots abroad with China sales jumping in the mid-20% range, and international sales rose 4% overall.

Rees said pulling back on discounts and wholesale shipments is hurting near-term revenue but should help reset the brand. HEYDUDE is also showing early signs of stability, even re-entering the top 10 preferred teen footwear brands this fall.

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